Now that we're settling into a new year, it's not a bad time to start thinking about tax time, and at least one expert says now's a good time to get documents together so you can see what you have and what you might need.
Two tax tips: There's at least one good reason to file early: Jackson-Hewitt manager Valerie Brooks told our partner Channel 2 News that the earlier you file the less likely you might be subject to identity theft. It can be a paperwork nightmare dealing with IRS identity theft claims.
Second tip: You know you have to pay your IRS bill in its entirety on April 15th, even if you file for an extension until October 15th, you can't owe money past the 15th of April or you will be subject to penalties of possibly 5% per month up to a certain amount and other possible failure-to-pay penalties, but if you are late in paying and it's your first time you can apply for a special waiver the IRS offers that can save much of the money that would be spent on those penalties.
Otherwise, it's always good to file as soon as you can if you think you'll get a refund. The IRS estimates it takes only about 3 weeks for you to get a refund if you file electronically and have set up direct deposit to your bank account.
File by paper, though, and it could take a month or more to get your money.
So the earlier, the better!