Seven Ways to Get a Jump Start on Your Taxes

Earlier is better when it comes to working on your taxes. Taxpayers are encouraged to get a head start on tax preparation, especially since early filers
avoid the last minute rush and get their refunds sooner.

The Internal Revenue Service has seven tips for getting a good jump on your taxes long before the April deadline is here:

Gather your records in advance. Make sure you have all the records you need, including W-2s and 1099s. Don’t forget to save a copy for your files.

Get the right forms. They’re available around the clock on the IRS Web site, IRS.gov.
Take your time. Don’t forget to leave room for a coffee break when filling out your tax
return. Rushing can mean making a mistake.

Double-check your math and verify all Social Security numbers. These are among
the most common errors found on tax returns. Taking care will reduce your chance of hearing from the IRS and speed up your refund.

Get the fastest refund. When you file early, you receive your refund faster. When you
choose direct deposit, you receive your refund sooner than waiting for a check.

E-filing is easy. E-filing catches math problems, provides confirmation your return has
been received and gives you a faster refund.

Don’t panic. If you have a problem or a question, remember the IRS is there to help. Try the IRS Web site (www.IRS.gov) or call the IRS customer service number at 1-800-829-1040.

MORE THAN HALF OF TAXES FILED ONLINE
More than 70 percent of American taxpayers just like you receive a check from Uncle Sam each year for overpayment of their Federal income tax. Last year, the average federal tax refund topped $2,200, so why would you wait to get your money any longer than you have to?

A growing number of Americans are electronically filing their tax return each year for just that reason: to get their refund back fast. If you’re due a refund and you send your return in the old-fashioned way, by U.S. mail, it could take as long as eight weeks to get your money back. By electronically filing your return, you will receive your refund in as little as seven to 10 days with direct deposit.

Last year, more than 66 million taxpayers e-filed their return. That’s half of all returns received by the IRS. In addition to receiving a faster refund, with e-file, you receive an official e-mail confirmation directly from the IRS when your return is received and accepted.

The fastest way for taxpayers to prepare and e-file their return is with inexpensive and easy-to-use tax computer software or online tax-preparation sites, such as www.turbotax.com. These convenient, affordable options help you get all the deductions you deserve and do the math for you – even guaranteeing calculations.

Using tax software or the Internet to do your taxes and e-filing has three distinct advantages:

Saves you money. The average cost for filing online is just $20.

Say goodbye to late fees. Even if you owe the IRS, simply e-file now and schedule a payment to be automatically deducted from your bank account on or before April 15.

Saves you time and eliminates errors. Compared to pencil and paper, online tax preparation slashes the time it takes to complete a standard 1040 from 13 hours to less than four hours. And, according to the IRS, less than one percent of e-filed returns contain errors compared to 20 percent of returns prepared manually.

KEEPING GOOD RECORDS
You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year. Good record-keeping will help you remember the various transactions you made during the year, which in turn may make filing your return a less taxing experience.

Records help you document the deductions you’ve claimed on your return. You’ll need this documentation should the IRS select your return for examination. Normally, tax records should be kept for three years, but some documents – such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property – should be kept longer.

In most cases, the IRS does not require you to keep records in any special manner.
Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return:
• Bills
• Credit card and other receipts
• Invoices
• Mileage logs
• Canceled, imaged or substitute checks or any other proof of payment
• Any other records to support deductions or credits you claim on your return.

Good record-keeping throughout the year saves you time and effort at tax time when organizing and completing your return. If you hire a paid professional to complete your return, the records you have kept will assist the preparer in quickly and accurately completing your return.

CHOOSING A PREPARER
Taxpayers who pay someone to do their taxes should choose a preparer wisely If you choose to use a paid tax preparer, it is important that you find a qualified tax professional. Taxpayers are ultimately responsible for everything on their return, even when it’s prepared by someone else. While most tax return preparers are professional
and honest, taxpayers can use the following tips to choose a preparer who will offer the best service for their tax preparation needs.

Ask about service fees. Avoid preparers who claim they can obtain larger refunds than other preparers, or those who guarantee results or base fees on a percentage of the amount of the refund.

Plan Ahead. Choose a preparer you will be able to contact after the return is filed and one that will be responsive to your needs.

Get References. Ask questions and get references from clients who have used the tax professional before. Were they satisfied with the service received?

Research. Check to see if the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs or the state’s bar association for attorneys. Find out if the preparer belongs to a professional organization
that requires its members to pursue continuing education and also holds them
accountable to a code of ethics.

Determine if the preparer’s credentials meet your needs. Are they an Enrolled Agent, Certified Public Accountant or Tax Attorney? Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection actions and appeals. Other return preparers may represent taxpayers only in audits
regarding a return they signed as a preparer.

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