Filing of income taxes is coming. Did you prepare all the necessary documents? How about the calculations of your income taxes? Everyone knows that filing sooner is not stressful and more convenient than late filing. Here are several tax tips to save your time and money while preparing your income taxes.

1.    Organize your documents – Prepare your forms like W-2s, 1099 and other tax related documents in one big folder or envelope and put it in one place. Use your last year’s return for better comparison as well as your AGI because you can use it for electronic filing.

2.    Review the data – Every year the Internal Revenue Service rejects thousand or even millions of tax returns because of minor mistakes involving transposed characters, incorrect calculations and improper filing status. In order to avoid these errors, review the data carefully. Review the names, your address and birth dates. Use the correct Social Security Number in the cards.

3.    Choose carefully – Today, there are several tax software out in the market. But, they are not equally created. The free versions exclude all the important forms you need on filing tax returns while premium version offers lot of services like availability of forms you need in filing or technical support center. Think wisely, choose the software that fits your need.

4.    Electronic Filing – Last year, 70 percent of taxpayers use the electronic filing. This method will allow you to monitor if the IRS will accepts or rejects your returns within 24 hours. Electronic filing plus direct deposit also allow you to receive your refunds within eight days.

5.    File an extension – Use tax software that allows using Form 4868 to have six months filing extension to minimize or reduce interest and penalties.