Don’t wait until April 14 to get started. If you know you are going to need an extension file early. This is the era of personal responsibility. I didn’t know does not have an air of credibility to it, neither will it hold up with it comes to dealing with Uncle Sam! The following Income Tax preparation tips should help you have the most painless experience for filing your taxes.

1. Visit www.irs.gov , this will be the best resource for what you need to know and you can file your taxes with them. The IRS “Free File” offers free tax preparation software to prepare and e-file your 1040. State taxes come with an additional cost tacked on.

2. Whenever possible file your own taxes. You can do this using any tax preparation software. After which you can have a professional look it over to give you peace of mind. Be sure to use a reputable tax professional who signs the tax return and provides a copy.

3. If you do choose to go with an income tax professional be very cautious of tax preparers who claim they can obtain larger refunds than other preparers. It is advisable to avoid preparers who base their fee on a percentage of the refund.

4. Gather the correct tax documents for your income tax preparations, W-2 vs. 1099, receipts, medical bills whatever you deem necessary for your taxes have it handy.

5. If you are going to used tax software to prepare your taxes make sure it is a licensed copy bought by you. If you go the online route use only trusted and reputable companies such as Turbo Tax, H&R Block or your favorite. Do not give out your personal information.

6. File Online. No only will you save time, receive instant confirmation that the IRS received your tax forms on time but you will also speed up the refund process because it takes less time for the IRS to receive your taxes. All tax preparing professionals should be able to file your taxes online for you. Just ask and make sure you get documentation that your taxes were indeed e-filed.

7. Take Advantage of Direct Deposit. Remember how I said you will speed up the refund process earlier? If you file for direct deposit, you will receive your refund much more quickly. Just be sure to provide the correct details for the money to be sent to you. How will you know when you get it? Well…it’s going to be a nice huge sum that how you know. You will need your bank’s routing number and your account number. Both of these numbers are available on your ONLY on checks.

8. Avoid the temptation and beware of fast pay loan options

You will pay an exorbitant amount in fees and interest to receive your refund just a week faster than normal. With the ability to file online, and with the amount being direct deposited into your account, the estimated time to receive your refund is about ten days. This is a reasonable amount of time to wait. A little patience in the matter will save you hundreds of dollars. You’ll be glad you slept on it!

Unless you are a Certified Public Accountant, this is just not your game. You need tax software so that you don’t go to jail or worse still loose everything you have worked so hard to obtain.  When it comes to money owed, Uncle Sam doesn’t play nice.

If the recent bankruptcies of the Lehman brothers, AIG and not to mention the shady accounting practices of the Enron years that brought us to where we are today.  If the resultant domino effects have taught us anything it is that you have to get in there, pull up your sleeves and deal with your own money.  Long gone are the days of forking over your personal responsibility to another and hoping for the best. We live in a very competitive world where you can almost anything with the touch of a button.  A hand-prepared return, no matter how well is a passive downright non-productive method of handling your personal finances.  Tax software not only increases the speed and ability with which to process returns while increasing accuracy simultaneously. 

Advantages Of Tax Software
 
1. They do all calculations for you with guaranteed accuracy

2. They show your tax refund add up in real-time

3. They explain how common life changes—such as buying a home, getting married, changing jobs, or having a baby—will impact your taxes, and tells you what you can deduct

4.Show you what you’re importing and where it goes in your return.

5. Many come with downloadable Audit Support Centers which give you step-by-step guidance on everything you need to know and do if the IRS contacts you e.g., Turbo Tax  Others have audit guarantees e.g., H&R Block

6. Many will search your return for up to 350 or more deductions, including mortgage interest, education, and medical expenses, to get you the biggest refund.

7. Tax Software, depending on your needs will provide extra guidance for investments sales such as stocks, bonds, mutual funds, and employee stock options plans.  Additionally many will help you qualify for deductions for your IRA contributions that will reduce your taxable income, thereby boosting your refund.

8. If you have a home based business for example, tax software programs will help you determine which depreciation method will get you the biggest deduction for your large purchases.  Which  one of you doesn’t want to know which depreciation method will get you the biggest deduction You will also be guided on whether you are eligible for a bigger vehicle deduction using actual expenses or the standard mileage rate.  You will also be shown what startup costs new businesses can deduct.

9. For those people who are property owners, you will be walked through the painless process to find as many as 20 deductions for landlords, from travel to advertising to repairs to insurance.  Additionally you may get guidance about how to deduct points, appraisal fees, and recording costs to maximize refinancing deductions depending on your needs.

10. For the serious entrepreneur you will get with some tax software packages expanded Schedule C guidance showing you precisely which expenses you can deduct for your vehicle, supplies, home office expenses, and more to maximize your business deductions.  You will also be led by hand through the process of tax write-offs for your industry to help you spot commonly overlooked deductions helping you ensure you don’t miss a thing.