Submitted by Mfinfo on Mon, 03/16/2009 - 22:49
April 15th is round the corner and it's common for last minute filers to rush through their tax forms. Rushing through the tax forms may increase the chances of making unnecessary mistakes. It has been noticed that due to these unnecessary mistakes, the tax refunds from the government are delayed. Here are some of the tax tips which may help you in filing your taxes for 2009:
- Create a collection point: Once you start receiving the tax-related documents, you can create a collection point to keep a track of them. You may keep them in a large envelop so that you have all the data ready when you start filling out the forms.
- Social Security numbers: You'll have to make sure that everyone in your tax family has a valid Social Security number and that you have them written down correctly. You can write it down in a piece of paper and keep it along with your tax statements.If you are filing jointly, the IRS should have your spouse's Social Security number as well as yours. Apart from this, they should also have the social security number of any dependents you claim. Important transactions like income statements, savings account interest, retirement plan contributions will depend upon them. It also checks the identification numbers against any tax breaks you apply for.
- Get hold of the required forms: Tax payers usually get a tax packet in January though e-filings have become popular. If you want to file it in the old-fashioned way, you can use them. If you are using the forms, it is always better to have backup forms. The backup forms will help you in case of mistake. Most of the common forms are available in the post offices and libraries. You can download the rest from the Internet.
- Electronic filing: If you are comfortable using the computers, you can try filing the forms electronically. This helps in an easy processing of your taxes. It also helps in detecting wrong calculations and provides a quick confirmation that your returns have been received. You can e-file for free via the Free File Alliance(http://www.irs.gov/efile/article/0,,id=118986,00.html).
- Decide how you want to complete your returns: You will have to decide whether you want to do it yourself or you want to take some expert help. You can even use the computer to help you in completing the returns or you may use the traditional pen and paper to do it. If you want to use the computer, chose a tax preparation software which will help your cause.
- Check your rebate data: If you have received the economic stimulus payments for the last year, then it can affect your 2009 tax refunds. If you received a lesser amount than what you were entitled to, then you will be able to claim the rest of it in this filing season. Thus, you will find that all versions of the individual tax return have a new line to claim the "Recover Rebate Credit". You'll require the statement you got from the IRS in connection with your payment in order to claim it.
- Use direct deposit: You can have your refund check directly deposited into your bank account regardless of fact whether you e-file or do it manually. In this filing season, you can have your refund sent to up to 3 accounts. The biggest advantage of it is that you won't have to worry about the check being lost or returned to the IRS because of a wrong address. So put the correct routing and account numbers on the form.
- Don't panic: It's common that people become a little nervous while filing their tax returns. So if you start early, you've got time to get the answers. Thus you'll be able to take full advantage of every tax break for which you're eligible.