It is a new year and with it comes yet another tax season. Most of us dread collecting our receipts and tax forms and trudging through the process- but it doesn't have to be that terrible. Use these helpful hints to get organized, and stay organized, for the 2010 tax season and future years.
1. Start sifting through all of your financial information and develop an organizing system with file folders to help you. Put your tax deductible item receipts in the folder.
2. Track purchases of big items that may be eligible for tax deductions such as, vehicles, energy efficient appliances, a house, etc. This way you'll have all the necessary information at hand when the time comes.
3. Be on the look out for your tax forms from your employers (i.e. 1099's, W-2's) and add them to your tax folder(s). If you haven't received these by February 1st, talk to your HR department and start tracing where these forms are---don't delay and wait to the last minute. No sense being penalized for a late tax return if you plan ahead!
4. Check in with the IRS website for valuable information concerning the current years tax rules and new items. For example, the IRS recently posted a form on their site by which you can submit an online request for a copy of your 1040 transcript free of charge. Plan ahead...don't delay...if you need a copy of last years transcript, go to the Short Form request for individual tax return transcript today.
5. Be sure to have the right tax forms to complete - check with your local post office, or go online to to www.IRS.gov to download forms.
6. Once you are all set to start filing your taxes, set aside ample concentrated, quiet time and space to fill out the forms. Take breaks so you don't burn out and can keep a clear head. DOUBLE CHECK your math and verify the numbers.
7. File early to avoid delays and to receive your refund as early as possible. E-Filing and direct deposits can speed up your return. (E-filing can also help avoid calculation errors and confirms your tax return has been received by the government.)
Remember to keep your cool and take it slow!
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