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The most common reason is that they owe money. If so, people generally wait as long as possible before filing and paying.
Another reason is complicated tax situations. For example, if you receive a Schedule K, work as an independent contractor with many clients (and many 1099s), filing is complex, confusing, and requires significant amount of time. People would rather spend that time working (earning more) or in leisure than navigating the tax code. Hence also the need/desire for extensions.
Yes, there are people who could easily file much earlier, but it's also human nature to procrastinate. It happens every year.
I used to file as soon as I had all of my forms, because I used to get a nice refund. I preferred that rather than changing my exemptions for withholding because it was sort of a forced savings account, and I would then use the refund for a major purchase or a vacation. Now that my kids are grown, my house is almost paid off, and I'm retired and only working part time, I always end up owing. So whereas I may do a quick calculation at some point to get an idea of what I owe, I don't finish and file until the last minute.
The most common reason is that they owe money. If so, people generally wait as long as possible before filing and paying.
Another reason is complicated tax situations. For example, if you receive a Schedule K, work as an independent contractor with many clients (and many 1099s), filing is complex, confusing, and requires significant amount of time. People would rather spend that time working (earning more) or in leisure than navigating the tax code. Hence also the need/desire for extensions.
Yes, there are people who could easily file much earlier, but it's also human nature to procrastinate. It happens every year.
If you are going to get a refund, why not do it early? You have already given the government an interest free loan for a year, so you might as well get it back early.
My wife and I are DINKs, (double income, no kids) so it takes some real work with the new laws each year to break even instead of paying half our saleries to the fed.
It's sometimes more work to keep your money than it is to earn it in the first place
So I don't worry about being early anymore, I have to spend that extra time just to keep a little of what I have, so I usually file the last part of March.
I usually do not have all my information from my investment firms and every year there is some type of a screw up. It really doesn't matter, as, I file estimated taxes quarterly and send some more loot with the extension. After it is all said and done, I usually get a small refund...real small.
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