We all know Mark Twain’s famous quote that the only certainties in life are death and taxes. Since you probably aren’t planning the former, getting a head start on the latter is ideal. How about some good news concerning taxes? If you received either of the two stimulus checks in 2020, it is good to know that they aren’t taxable! And if your income went up so that you no longer qualify for a stimulus check, you don’t have to pay back what you received.
Filing early has many benefits. The most obvious, of course, is that any money due back to you arrives sooner. No one argues that tax preparation is a challenge, and being proactive avoids delays if entities are slow to provide you with the necessary tax documents. Starting early means you have time to hound them!
Many retired seniors are freelancing and may want to jump on their tax preparation to determine if they qualify for a SEP or Simplified Employee Pension IRA. Side gigs offer the advantage of a higher contribution limit than a traditional IRA.
Completing your tax prep ahead of time means you can relax and enjoy March Madness, and then watch spring flowers pop up in April. There will be no nagging dread that your pile of tax paperwork awaits.