The earlier you file your taxes, the sooner you get your return
February 9, 2010 by Taxcut Editor
Filed under Personal and Business Taxes
Tax time coming soon
One of the easiest ways to find money now is to get a jump on filing income taxes. Many consumers wait until April to start gathering their paperwork together. They bring them to their tax preparer and want a rush job. The problem with waiting is that it opens the door for mistakes and it makes the time to get a refund that much longer. Anyone wanting to get the jump on filing, here are some tips.
Getting the jump on taxes
The first thing taxpayers need to be aware of is Schedule M. Schedule M is a new tax document that is used to account for the “Making Work Pay” credit money received on paychecks. The new payroll tables from last year that put an extra $ 400 in the pockets of single people or $ 800 for married couples filing jointly. For some taxpayers, however, they may have paid too much into the fund. To correct the over taxation, consumers have to file a Schedule M.
Secondly, you have to get your paperwork together. January to mid-February is when W-2s and other tax-related documents start coming in. Consumers should create a special place for all tax documents. The requisite information for these documents and getting it all together at once will make it easier to finish tax paperwork.
Thirdly, you have to double check things like social security numbers. Though it sounds rudimentary, there are a surprising number of tax returns received without the correct numbers. It holds up processing and refunds for thousands of filers. The correct number is critical, because a lot of transactions are directly tied to them. Everything from income statements to retirement plan contributions are recorded based on the social security number.
Fourthly, you need to know what filing package is the best to get. The IRS package is based on the filing history of a taxpayer, but that can change. Many documents are accessible online or at the library of post office. For taxpayers who had a major change, like marriage, it’s important to find the right documentation. Married couples looking for money now have to file with the right documents and in the right way.
Fifthly, think about electronic filing. Studies have shown that last year about two-thirds of all taxpayers filed electronically. The IRS processed E filed tax returns 50% faster than paper returns. Many of the software programs have a review function, where the return is double checked for innaccuracies and errors. The good news for E-filers is that taxpayers may qualify to file for free. Taxpayers this year with adjusted gross income of $ 57,000 or less for 2009, can file for free thanks to a cooperative program between tax software companies and the IRS.
Finally, taxpayers can elect direct deposit. A paper return takes weeks to get to the IRS, get processed, and a check to be cut and then sent. Conversely, it usually takes 10 to 14 days for a direct deposit to get to a bank account. Taxpayers that desire direct deposit have to file Form 8888, but it speeds up the process.
Filing in 2010
Now more than ever, filing tax returns is being made simpler and simpler for taxpayers. Those who want their tax return money now should follow the above tips to speed the process up. There are millions of tax returns that have to be reviewed and consumers looking for quick ways to file should use every advantage available.
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Income Tax Filing Time Article
April 22, 2009 by Taxcut Editor
Filed under Uncategorized
Income Tax Filing Time Tips to Help You to Prepare
IT’S THAT TIME AGAIN!! 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 get things together now, so you can eliminate the stress later. 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:
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 filing a paper return to do your taxes manually, you will want to get the forms you will need now. 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?
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 , TurboTax , and TaxBrain Online Tax Service . They all offer the same relative services, it is really just a matter of which setup you like the best.
Check out the comparison charts and specials offered by the top Online Income Tax Filing Services here:
TaxCut Online – Get Your Taxes Finished Fast
Get your refund in as little as 9 days. E-file with TurboTax today. It’s Easy
Prepare prior years taxes online at TaxBrain.com — 2002, 2003, 2004 & 2005.Start Now! 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! Check them out! Get The Answers You Need!!
About the Author
Floyd Dorrance is a professional author of a variety of articles. For updated articles go to: http://articles.myinfohut.info Debt relief tips and Guides to guide you on your way to financial freedom can be found at: http://cbglobe.com/x.cgi?id=fdorr 10,600 E-Books in 9 Categories and 96 sub categories. Go to: http://tinyurl.com/2yz7a9
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