Helpful Tax Tips
- Double-check all information when filing out your taxes.A businessman calculating expenses at tax time image by Christopher Meder from Fotolia.com
According to the "Economist," even Douglas Shulman, the head of the IRS, gets someone else to do his taxes. With over 70,000 pages in the tax code, it can be impossible to understand the intricacies of the law. But doing your taxes can be easier if you follow some basic instructions and take advantage of often overlooking deductions. - Make sure all the simple questions on your tax return are filled out correctly. If you fill out the form in longhand, make sure that everything is legible. Double-check that you provided the IRS with your correct Social Security number, and you have signed it in the proper places. If you are filing jointly, both you and your spouse have to sign the form. If a professional prepared it for you, she must sign it as well. Make sure the form is dated.
If you are filing taxes for last year and you did not get married until Dec. 31, the final day of the year, you still file as "married." It does not matter that you were single 364 days of the year, only what your status was as of Dec. 31. - Most tax records only need to be kept in storage for three years. File away bills and credit cards, mileage logs and any other paperwork that relates to your taxes, such as invoices or receipts. Paperwork from houses you bought or sold, stock transactions or rental property you own may need to be kept longer. Check with your tax adviser.
- Keep calm if you get a letter from the IRS about your return. Most issues can be dealt with easily. Read the letter thoroughly. Sometimes the IRS needs additional information or there may be a change needed on your account. An IRS letter will always give you instructions about how to provide them with whatever is needed.
If the letter asks for an additional tax payment and you agree with the amount they are requesting, simply follow their instructions for making the payment. Usually no reply is expected. If, however, you disagree, follow the directions on the letter for providing them with materials and documents that back up your point of view. The IRS should respond within a month's time. - File electronically and receive your tax refund as much as a full week earlier. Check with IRS.gov to see if you can e-file for free. If you are eligible for a refund, you can track it online through the IRS website. If your refund does not arrive, and you believe it is stolen or lost, you can apply for a replacement check four weeks after the date the IRS mailed the original check. But you can save yourself the suspense of checking the mail if you ask the IRS to electronically deposit your refund into your bank account.
- You won't find this advice in IRS rules, but if you are not expecting a refund, console yourself with a free treat. Check your favorite chain stores websites to see if they are offer any special promotions on April 15. In the past, Cinnabon and Taco Bell have been among those offering free food to taxpayers.
The Basics
Save Records
IRS Letter
File Electronically
Console Yourself
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