Don't File Your Taxes Too Soon. Here's Why.

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You've probably gotten your W-2 tax forms from work by now, and you might be rearing to get your taxes filed to get your refund on its way. But there are good reasons to hold off before filing your taxes too soon.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, runs through some key reasons why you should hold off on filing your taxes too early. Dan notes that often, forms from short-term jobs you might have forgotten about or from investment accounts end up getting sent late, surprising taxpayers when they finally arrive. Moreover, even if you've already gotten tax forms, some brokers are notorious for reissuing corrected 1099s due to updates that weren't provided to them on time. Dan uses master limited partnerships as an example, noting that while Kinder Morgan Energy Partners , Enterprise Products Partners , and other MLPs do their best to get K-1 tax forms out by mid-February, other companies that report on K-1s aren't always as timely. Linn Energy notes on its website that it has until mid-April to get K-1s to investors, even though it aims to have them out well before that. Dan concludes that filing early can just create the hassle of having to file an amended return later, and it's far easier just to wait and file once you're sure everything's 100% correct.

Be smart about your taxes for 2014
Avoiding the hassle of having to refile your taxes is just one way to be smarter about what you have to pay to Uncle Sam. In our brand-new special report "How You Can Fight Back Against Higher Taxes," The Motley Fool's tax experts run through what to watch out for in doing your tax planning this year. With its concrete advice on how to cut taxes for decades to come, you won't want to miss out. Click here to get your copy today -- it's absolutely free. 

The article Don't File Your Taxes Too Soon. Here's Why. originally appeared on

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Enterprise Products Partners. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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