Have you filed your taxes yet? If not, the deadline to do so is midnight on April 15, but the Internal Revenue Service recommends that people submit their paperwork even sooner if possible. This is good advice because if you owe the government money, procrastinating beyond that date comes with a cost. And if you are don’t owe anything but are lucky enough to be expecting a refund, the earlier you file, the quicker you’ll get your money back.

Getting A Head Start

For many people, filing their taxes is about as appealing as going to the dentist. But of course it is also a necessary process for most Americans, and the sooner you get it out of the way, the better off you will be. In fact, beyond the relief of finishing this task for another year, there are several direct benefits you receive as a direct result of filing your taxes.

The first, and most obvious, benefit is of course if you are getting money back. About one third of all taxpayers get a refund because they had too more money withheld than they ultimately owed or they paid too much in estimated taxes. In either of these scenarios, you have three years to claim a refund. After that time, you risk forfeiting your right to this money.

The same timeframe applies when it comes if you qualify for a tax credit, such as the Earned Income Tax Credit, which is a credit provided for taxpayers whose income is below a certain amount and varies depending on the person’s filing status and number of dependents.

Further, if you are self-employed, when you file for your taxes, you earn credits toward Social Security retirement and disability benefits.

Finally, when you file your taxes for 2007, if you meet the eligibility requirements for the 2008 Economic Stimulus payment, you will automatically be entered into the system to receive this additional rebate, which is up to $600 for an individual or up to $1,200 for a married couple, plus an additional $300 per child.