IRS Offers Tax Tips for 2009 Tax Returns
By Robert Steere, Toolkit Staff Writer
2009 has come to an end. Thus, all the financial activity that affects the preparation of your 2009 tax return and the calculation of your 2009 tax liability (with a few exceptions related to retirement contributions and homebuyer credits) has been completed. While the April 15 filing deadline is still three months away, time keeps on moving, and it will be here before you know it. Before tax season really heats up, you may want to consider some tips from the Internal Revenue Service (IRS) to help you with your tax preparation and return filing this year. Here's the advice the IRS has for you:
First, start gathering your records. Compile any documents or forms you'll need when filing your taxes--receipts, canceled checks and other documents that support any item of income or any deduction you intend to take on your return.
Collect W-2s and 1099s. Be on the lookout for the W-2s and 1099s that will be coming soon (by January 31) from your employers and others from whom you receive income. You will need these (especially the W-2s) to file your tax return.
Try e-filing your return. When you prepare and file your return electronically, the software will handle the math calculations for you. If you use direct deposit, you will get your refund in about half the time it takes when you file a paper return. More than two thirds of 1040 tax returns are now filed electronically.
Check out Free File. If your income is $57,000 or less you may be eligible for free tax preparation software and free electronic filing. The IRS partners with 20 tax software companies to create this free service. Free File is for the cost conscious taxpayer who wants reliable question-and-answer software to help them prepare a return. Learn more at the IRS website.
Consider other filing options. There are many different options for filing your tax return. You can prepare a paper return yourself using paper and pen, computer, or special software programs. You can go to a tax preparer who will most likely use a software program and e-file your return. You may be eligible for free face-to-face assistance at an IRS office or volunteer site. Take time to weigh the different options and determine which one suits your needs.
Consider Direct Deposit for your refund. If you elect to have your refund directly deposited into your bank account, you will receive it much faster than waiting for a paper check.
Routinely visit the IRS website. The official IRS website is a great place to find the information you need to file your tax return--forms, instructions, tips, answers to frequently asked questions, and updates on tax law changes.
Check out Publication 17, Your Federal Income Tax. Publication 17 is the comprehensive collection of information and instructions for taxpayers who want to know the correct way to prepare and file a 1040 tax return. For those who want to prepare their own return, it is the most complete set of instructions available.
Review! Don't rush! Most of our mistakes are made when we are in a hurry. Don't rush. Mistakes slow down the processing of your tax return by the IRS. Double-check all the Social Security Numbers and math calculations on your return--these are the most common errors made by taxpayers.
Finally, the IRS encourages you not to panic. If you run into a problem, ask for help. Remember you can go to the IRS anytime for help, either by going to their web site, by calling their customer service number at 800-829-1040, or by stopping in at one of their many customer service offices.
With these tips in mind, the process of preparing your 2009 tax returns hopefully will be the easiest and smoothest ever.
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