Income Tax Filing Time

Preparing yourself to file your income taxes.

{{cringe}}... {{GROAN!!}} Income tax filing... preparing those awful tax forms. Yes, it's that time of year again... when you worry about filing your tax returns; wondering if you will get a refund... or worse yet, have to pay more in!

It's best to just plunge right in and get things together now, so you can eliminate the stress later. To that end, here are some tips to help get you started:

1. Gather all the documents you will need to file your tax returns, here is a list (not all inclusive but it covers most filers):
  • A copy of your tax return from last year
  • The Social Security cards of you, your spouse and dependents, if applicable
  • W-2s from all employers
  • 1099 forms detailing dividends and interest paid to you.
  • Form 1099-G for any refund, credit or offset of state or local taxes.
  • All small business receipts.
  • Other 1099 forms such as 1099-DIV, 1099-R
  • Income statements from rental real estate, royalties, partnerships, S corporation, trusts
  • Unemployment Compensation received.
  • Social Security benefits received.
  • Other Income
If you plan on itemizing your deductions you will need to complete Schedule A and have the following receipts on hand:
  • All medical expenses including doctor, hospital, laboratory, dental, medical equipment, prescriptions, etc.
  • Receipts from taxes you paid last year such as state and local taxes, real estate taxes, and personal property taxes.
  • Form 1098 for home mortgage deduction of interest and points.
  • Receipts for charitable contributions and gifts made last year.
  • Casualty and theft losses if you incurred any.
  • Any job related expenses including uniforms, required education, professional dues and publications.
Keep in mind that you likely won't receive your W-2's until late January; and the 1099's until mid-February. If you do get them early, that means you can file early and get your refund quicker. If your calculations show you will be owing money, you will want to wait and file nearer the deadline of April 15th, but you can prepare your returns early so you have time to save the money you need to pay the additional taxes owed.

Where To Get Paper Forms

If you plan on filing a paper return and do your taxes manually, you will want to get the forms you will need now. You have several options on where to get the forms. You can get them from your local Post Office; in the mail if you filed a paper return last year; or directly from the IRS website.

Why File On Paper?

Now, I'll be honest with you. If you are filing manually, you shouldn't! You should definitely check out the eFile option on the IRS website; or better yet, use the FreeFile opton for eFile if you qualify. This benefits you in several ways... especially if you are getting a refund! First, you get the refund so much quicker from both Federal and State; usually in a matter of a couple weeks versus waiting months! Second, when you file online, or use software/services to file online, all the calculations are done for you. And third, there are usually audit procedures you can run that will help you avoid mistakes and pay less taxes!

Tax Software Or Filing Online?

You've probably seen tax software advertised, and it is a great option. However did you know various tax prep software vendors also offer online tax preparation and filing so you don't have to buy their software each year? Yes, and I use it, have for several years, and love it! They offer all the forms you will need, you can file by mail or you can eFile. Their audit features are thorough with great explanations and they will save your info for next year so you have fewer fields to complete in the future. Plus, you can print out a paper copy for your records, so it just plain makes good sense to go the online route.

Some of the best of these online tax services include TaxCut and CompleteTax. They offer the same relative services, it is really just a matter of which setup you like the best.

Personally, I found TaxCut to be very easy to use, and the best value of the three noted above. You even get one free session with a tax preparation specialist as part of the Premium package... and the eFile is FREE with TaxCut Premium, unlike some other services where you have to pay additional for this.

Check out the comparison charts and specials offered by the top Online Income Tax Filing Services here:





Filing Your Tax Returns Online For Free

Now, wait! Don't forget, earlier I mentioned "use the FreeFile opton for eFile if you qualify"... well, here is where you find out if you qualify! The IRS website FreeFile Information Page will help you find an online eFile tax preparation service to do your taxes and file them electronically for you ... all for free! Do check them out!

So, now it is time to get cracking! Get those documents and receipts together; check out the online tax return filing sites and enjoy your refund that much quicker!





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