It's that time of year again, tax season! Whether you're 30 days into your first job and don't know what a deductible is or 30 days from retirement with a hundred deductions, here are some help tips to make it to April 16th and keep your sanity.
* Keep it all in one place
This is really a no-brainer. Keep all of the records you need and all those you might need together; in doing so you will reduce your chances of scrambling on April 14th to find the receipt for that charitable donation you made last May. Important tax categories to keep in mind include:
o W-2 information
o Interest and dividend income
o Capital gains and losses
o Charitable donations
o Medical and dental expenses
o Deductible business expenses
o Miscellaneous deductions (educational expenses, safe deposit boxes, financial planning)
Keeping items from each category separate will help you avoid confusion when the big day comes.
* Set some time aside — early!
Set some time aside early. Don't wait until April 14th to make sure you have everything. Look over your information, make sure you have everything you will need, and get an idea of the challenges you face. Trust us, you do not want to be surprised on April 10th when you realize you never received your W-2 information.
* Help technology help you!
Quicken and Turbo Tax are great tools. Quicken even includes a feature that automatically categorizes items for your taxes. Filing your taxes can be tough, but it can be made considerably easier with the right financial software.
* File electronically
There is no reason to stand in line at the Post Office on April 14th. File electronically and avoid the hassle. A further benefit of doing so is that your filing will be processed faster, which is a good thing whether you�re expecting a tax return or not. Even if you owe taxes, you will feel better if you complete your tax work, and know the amount due.
* Direct Deposit is your friend
Another way to speed up your tax return is to use direct deposit. This year the IRS will allow you to split your tax return across as many as 3 accounts.
