What to Do with Your W2

n the last few weeks, many Americans received their W2 tax documents. So now what? While the April deadline may seem light-years away, it's never too soon to get a head start on your taxes. Here are a few reasons why.

More time, fewer mistakes. A journalist would never turn in an article before editing and proofing it several times, and the same goes for filing your taxes. The more time you give yourself, and your CPA, to look over your information, the more likely you are to notice mistakes or forgotten deductions.

Get your refund sooner. It's simple. The sooner you file your taxes, the sooner you'll be able to reap the benefits of your refund. And setting your refund up for direct deposit can expedite the process even more, in addition to saving you a trip to the bank. Consider setting up your refund to be deposited directly into your savings account; this will give your savings a boost before you have a chance to spend your refund.

Beat the rush. While many plan to file their taxes early, there's always the mad dash of filers come April. Starting and filing now means you'll avoid the craziness at the end and the possibility of having to file for an extension if the unexpected happens. Filing for an extension means more paperwork, and who wants to be stuck inside filling out forms when spring rolls around?

Whether you prepare your taxes yourself, or have someone do it for you, starting early and having more than one set of eyes review your documents is always a good idea. So, whip out your W2 and get started on your taxes today! Click here for tips on starting your tax return.

For more information on creating an investment portfolio, click here.

Visit www.feedthepig.org for more money-saving tips.