Top Ten Tax Tips for Early January 2010
The IRS has released their first tax tip of the season with the Top Ten Tax Time Tips. Their tips range from record gathering and filing options to Publication 17 review and contacting the IRS with your questions.
1. Get your records ready. Start gathering all the records you will need to prepare your tax return when all tax forms have arrived in the mail.
2. Watch the mailbox. Keep your eyes open for tax documents in the mail including mortgage interest and W2s from your employer. Some mortgage companies do not send the forms separately but enclose them with your monthly statement.
3. eFile When Complete. File your return electronically when it is prepared. The majority of Americans are now filing their returns electronically and the process is much faster than the traditional method of mailing in a paper return.
4. Free File your Return. Many preparation software solutions have teamed up with the IRS to provide free filing options when your income is below certain levels. If you use TurboTax or TaxAct, try the free Federal version before paying for the service.
5. Consider Free Consultations. Many parts of the country now offer free filing consultations. Check with your local library or your local community center to see if they have experienced help for you tax preparation.
6. Direct Deposit is Faster. You can speed up your refund from the IRS if you have them directly deposit the funds into a bank account instead of sending you a check.
7. Watch IRS.gov. The government website has updates throughout the tax season with great advice when you need your questions answered.
8. Publication 17. This IRS document is the end all when it comes to information about your tax return. Check it for changes to the tax code that will affect your return in 2010.
9. Review your return. Mistakes and missing information are common when you send a return without it reviewing it first. Take your time to consider every part of your return for additional deductions and credits your might be eligible for.
10. Contact the IRS. If you have a question to hesitate to call 1-800-829-1040 toll free.