IRS Presents: Top Ten Tax Time Tips

While the tax filing deadline is only months away, it always seems to be here before you know it. Here are the Internal Revenue Service’s top 10 tips that will help your tax filing process run smoother than ever this year.

Start gathering your records – Round up and documents or forms you will need when filing your taxes: receipts, canceled checks and other documents that support an item of income or a deduction you are taking on your return.
Be on the lookout – W-2s and 1099s will be coming soon from your employer; you will need these to file your tax return.
Try e-file- When you file electronically, the software will handle the 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. In fact, last year, 2 out of 3 taxpayers used e-file.
Check out Free Filed – 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. Visit IRS.gov to learn more.
Consider other filing options – There are many different options for filing your tax return. You can prepare it yourself or go to a tax preparer. You may be eligible for free face to face help at an IRS office or volunteer site. Give yourself time to weigh all the different options and find the one that best suits your needs.
Consider Direct Deposit – If you elect to have your refund directly deposited into your bank account you will receive it faster than waiting for a paper check.
Visit IRS.gov again and again – The official IRA Web site is a great place to find everything you will need to file your tax return: forms, tips, answers to frequently asked questions and updates on tax law changes.
Remember this number: 17 – Check out Publication 17, Your Federal Income Tax on IRS.gov. It is a comprehensive collection of information for taxpayers highlighting everything you will need to know when filing your return.
Review! Review! Review! - Do not rush. We all make mistakes when we rush. Mistakes will slow down the processing of your return. Be sure to double check all the Social Security Numbers and match calculations on your return as these are the most common errors made by taxpayers.
Do not panic! - If you run into a problem, remember the IRS is here to help. Try IRS.gov or call the customer service number at 800-829-1040.

What to Do With Your Tax Refund

Instead of spending your tax refund this year on something that may not last beyond today, why not consider putting it towards something that will help make your financial future grow?

Make an extra credit card or house payment to reduce your interest costs.

Consider buying a U.S. savings bond. You can purchase these bonds from most banks, credit unions, your workplace, or online by visiting: www.savingsbonds.gov

Get an automatic payroll deduction that goes directly to some type of savings vehicles. You can set it up with a bank or mutual fund company, and start the account with your tax refund.

Contribute to an IRA. If you qualify for a tax deductible IRA, you have until April 15^th to contribute and claim the contribution for your current tax return. Or, you could put your tax refund into an IRA for the following tax year.

If you qualify, open a Roth IRA. Even though you do not get to deduct the contribution from your taxes, the Roth IRA provides a tax free way to save for retirement.