Tax Season Is Upon Us – Tips For Taxpayers

As the 2010 tax deadline approaches, April 15th, the Internal Revenue Service has published a list – on its website www.irs.gov – of tips taxpayers should keep in mind when filing their returns. Individual taxpayers and taxpayers with children may find the following tips useful:

  • Start gathering your records: Round up any documents or forms you’ll need when filing your taxes; receipts, canceled checks and other documents that support an item of income or a deduction you’re taking on your return.
  • Be on the lookout: W-2s and 1099s will be coming soon from your employer.
  • Try e-file: When you file 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. E-file is now the way the majority of returns are filed.
  • 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.
  • Consider direct deposit: If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than waiting for a paper check.
  • Remember this number 17: Check out Publication 17, your federal income tax on IRS.gov. It’s a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.
  • Child Tax Credit: You may be able to take this credit on your tax return for each of your children under the age of 17.
  • Child and Dependent Care Credit: You may be able to claim the credit if you pay someone to care for your child under the age of 13.
  • Earned Income Tax Credit: The EITC is a benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund.
  • Adoption Credit: You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child.
  • Higher Education Credits: Education tax credits can help offset the costs of education.
  • Student Loan Interest: You may be able to deduct interest you pay on a qualified student loan.
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Dansette