March 12, 2011

2010 Tax Returns – Stress free tax filing tips

The stress for filing a tax return was started last January and will end on the midnight of April 18. Rushing yourself couldn’t help you prepare better filing strategy; sometimes it can lead to IRS audit, rejection of returns, and incorrect computations. To prevent these hassles, you can follow the stress free tax filing tips below:

1.    Be Organize – Preparing your documents ahead of time can lessen your burdens. Being organized can save your time and money. And be diligent on tracking every mail you receive that illustrates your income and expenses for the previous years.

2.    Prepare all the documents - Gather your W-2s and other related documents and place it on one big envelope or binder, so that in case you need them, you know where you placed them. However, there are some unexpected documents that you may not noticed you need like:

•    Licensing fees for paid cars
•    Expenses records of child care
•    College paid tuitions
•    Interest rate statement for home mortgage
•    Expenses paid for medical
•    Social Security numbers
•    Receipts received from charitable donations
•    Birthdates of your children’s and dependants

3.    Reviewing your Income Tax situation – According to the IRS, “self prepared tax returns have a higher rate of error”.  It's easier if you review the complexity of your income tax returns so that you can decide what strategies suited for you. For those who currently paying tuitions, who have children, owning a home, and self employed, you may consult a tax expert for better filing strategies.

Consult a tax professional or visit the IRS website at irs.gov for further information with regards to your income tax returns.

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