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Now that you’ve vacuumed the confetti off the floor and finished washing all those champagne flutes, it’s time to start preparing for the year we just rang in – and the taxes we’ll all have to pay on April 15.
These five tips come from Gregg Semanick, Delaware’s IRS spokesman, and ought to start even a novice taxpayer on the right track to filing a 2009 return.
1. Gather your records…now! It’s never too early to start getting together 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 tax deduction or tax credit you’re taking on your tax return. Also, be on the lookout for W-2s and 1099s, coming soon from your employer and financial institutions. Check out IRS Publication 552, Recordkeeping for Individuals, as it contains information on what records you will need in preparing your return.
2. Visit IRS.gov often. The official IRS website is a great place to find everything you’ll need to file your tax return: tax forms, tax tips, electronic filing information and updates on the latest tax law changes.
The IRS encourages taxpayers to check out the Tax Benefits of the American Recovery and Reinvestment Act of 2009 section on IRS.gov. Get information about the numerous tax breaks made available in this Act. Energy, education, homebuyer credits and the new vehicle document fee deduction for Delawareans may help to save you money.
3. Do a little research. Check out IRS Publication 17, Your Federal Income Tax Guide. It’s a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.
IRS publication 17 features details on taking advantage of new tax-saving opportunities, such as the making work pay credit for most workers, American Opportunity credit for parents and college students, energy credits for homeowners going green, first-time homebuyer credit, document fee tax deduction for new car buyers and the expanded child tax credit and earned income tax credit for low- and moderate-income workers.
IRS Publication 17 is available online at IRS.gov or can be requested by calling 1-800-829-3676.
4. Think ahead to how you’ll file. Will you prepare your return yourself or go to a preparer? Do you plan to file your tax return electronically with the IRS E-file Program? Do you qualify to file at no cost using the Free File Program on IRS.gov? There are many things to consider. So, give yourself time to weigh them all and find the option that best suits your needs.
Now that you’ve vacuumed the confetti off the floor and finished washing all those champagne flutes, it’s time to start preparing for the year we just rang in – and the taxes we’ll all have to pay on April 15.
These five tips come from Gregg Semanick, Delaware’s IRS spokesman, and ought to start even a novice taxpayer on the right track to filing a 2009 return.
1. Gather your records…now! It’s never too early to start getting together 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 tax deduction or tax credit you’re taking on your tax return. Also, be on the lookout for W-2s and 1099s, coming soon from your employer and financial institutions. Check out IRS Publication 552, Recordkeeping for Individuals, as it contains information on what records you will need in preparing your return.
2. Visit IRS.gov often. The official IRS website is a great place to find everything you’ll need to file your tax return: tax forms, tax tips, electronic filing information and updates on the latest tax law changes.
The IRS encourages taxpayers to check out the Tax Benefits of the American Recovery and Reinvestment Act of 2009 section on IRS.gov. Get information about the numerous tax breaks made available in this Act. Energy, education, homebuyer credits and the new vehicle document fee deduction for Delawareans may help to save you money.
3. Do a little research. Check out IRS Publication 17, Your Federal Income Tax Guide. It’s a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.
IRS publication 17 features details on taking advantage of new tax-saving opportunities, such as the making work pay credit for most workers, American Opportunity credit for parents and college students, energy credits for homeowners going green, first-time homebuyer credit, document fee tax deduction for new car buyers and the expanded child tax credit and earned income tax credit for low- and moderate-income workers.
IRS Publication 17 is available online at IRS.gov or can be requested by calling 1-800-829-3676.
4. Think ahead to how you’ll file. Will you prepare your return yourself or go to a preparer? Do you plan to file your tax return electronically with the IRS E-file Program? Do you qualify to file at no cost using the Free File Program on IRS.gov? There are many things to consider. So, give yourself time to weigh them all and find the option that best suits your needs.
4a. Choose a tax preparer wisely. In Delaware, over half of all filers use a paid tax professional. Choose a tax preparer wisely and in the same way you would choose a doctor or lawyer.
Even though you will be paying someone to do your tax return you are responsible for what’s on your return. It’s important to find a qualified tax professional.
The most reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items. By doing so, they have your best interest in mind and are trying to help you avoid penalties, interest or additional taxes that could result from later IRS contacts.
4b. Consider electronic filing. Electronic filing is fast, easy, accurate and secure. When you file electronically, the computer will handle the math calculations for you, and you will get your refund in about half the time it takes when you file a paper return.
Some taxpayers can file for free and online at IRS.gov. The Free file program can be used by taxpayers with an Adjusted Gross Income (AGI) of $57,000 or less; about 70 percent of Delaware taxpayers qualify for the Free File program. Even if you do not qualify for the Free File program taxpayers can still e-file through the IRS.gov website at nominal or low cost.
5. Relax. There’s no need to panic. If you run into a problem, remember the IRS is here to help. Try the IRS.gov website or call the customer service number at 1-800-829-1040.
