Why do so many people wait till the last minute to file their taxes?

Question

So I guess everyone who waits does so because they owe. Why don't they just have more taken out or file quarterly instead?

Answer 1

lazy

Answer 2

Personally, I calculate my taxes and have everything ready to file by mid February.

If I am due a refund, I file as soon as I'm ready.
If I owe, then I'll sit on it for a couple months and leave the money in the bank.

Additional quarterly holdings usually isn't a good idea, because for most people who owe, it's less than $1,000. And, there could be some big differences from one year to the next.

Answer 3

I've never understood not completing one's forms before the last day, but I do understand not actually mailing the return until the last day.
If you owe money, paying it early is only to the governments advantage since they give you until the 15th (typically) to pay. If you are getting a refund, waiting only gives the government a longer loan on your money interest free.
I know people put things off because they are afraid they owe, and then are upset when the bill is more than they expected.
My suggestion is, complete your forms by March 15th, that way, if you owe, you have a month to find the money, if you are due a refund, you kow right away.
Also, if you owe to one and a refund to the other (state or Fed), use one to pay the other, thus why filing early is to one's advantage.

Answer 4

Time value of money says that $1 in your hand today is worth more than $1 in your hand tomorrow. With that theory, if you owe tax money, it's better to pay at the last possible moment. Of course, the CCRA knows this too. That's why if you tend to owe lots at filing time, they will start asking for installment payments.

Answer 5

CASH FLOW!!!

Keep your own money as long as possible.

However, There are a number of new wage earners that have no idea what to do! One person I talked to this weekend was getting worried and wanted to know how to file an extension. This person's tax return consisted of two W-2's. (1040EZ). I gave the individual how to go to IRS.gov and file electronically for FREE. There are a number of software providers that could be used. The UNKNOWN can be very scary especially when dealing with the IRS.

Answer 6

Pure procrastination. When you file your return electronically, you get to pick the day you want the money drafted from your checking account. File your taxes in Feb, automatically pay your tax on April 15th. If you need to mail in your return, most computer programs will print a payment coupon that you can mail in at a later date in a seperate envelope. File in Feb, Pay in April! There is no good excuse for waiting until the last minute to file...wait...I did have one client who waited until the last day since his refund was going to be held and given to his ex-wife for child support. He didn't want her to get the money, so he mailed the return in on the last day. She won't get her money until sometime in June. Ok, not so it's not a GOOD excuse, but it was justifiable : }

Answer 7

When I owe, like this year, I file and pay at the last minute. It keeps as much of MY money in MY pocket as long as possible. And with what I had to pay this year, the extra interest will pay for my vacation. :-) (The return was ready to go in early Feb, I just sat on it until last week and had them ACH the money out yesterday -- which they obligingly did on time.)

When there's a refund coming, I file as soon as I have all of my records and tax statements together.

Answer 8

My husband is dropping ours off to our tax female as we talk. If we could pay like we did 3 years in a row we wait till the most suitable minute. If we are getting plenty decrease back we get it proper in. no matter if it truly is a small volume we do it after we get it mutually like this 365 days.

Answer 9

I like to file my taxes in late July. If the IRS wanted me to file by April 15th, they wouldn't offer a way to file an extension. By filing late I help the IRS keep their employees working all year. It's the least I can do to help out all those needy hard working folks to keep a job. If everyone filed on time it would be such a mess,, the IRS would have to hire extra part time help,, the post office would have to hire temp mail carriers,, etc. By filing late I help the balance of things.

Answer 10

Many people will have to pay taxes so waiting until the last minute pushes back the payment date.

Answer 11

It does not matter. You still have to file no matter what. Paying and filing are different.