Office Depot — MomStart

Last Minute Tax Tips From Office Depot’s Finance Expert, Farnoosh Torabi

Taxes, taxes taxes, I’m almost done organizing all of my tax information how is your tax solution coming along? Good news is you have three EXTRA days this year to file, due to April 15 falling on a holiday in D.C. this year. Office Depot sent me some tips from Farnoosh Torabi to share with you. Remember I interviewed her a few weeks ago asking her how to organize my home home office and start getting ready for taxes. Be sure to check out my interview with Farnoosh Torabi, she provided great advice then and is still providing us with great tips with these tax tips here.

1. File Online. Go green and save time and money. Choose from a variety of affordable online software to help you file your taxes [H&R Block At Home Deluxe & At Home Business] Note that taxpayers whose adjusted gross income was $58,000 or less in 2010 can file electronically for free through the IRS web site at freefile.IRS.gov.

2. Boost IRA Savings. Contributing to a traditional IRA is one of the last ways to really reduce your 2010 taxable income before April 18. You have until the very last day to contribute to this retirement account and deduct the amount from your taxable income. The dollar limit contribution for 2010 is $5,000 is you’re 49 or younger. $6,000 if you’re age 50 or older.

3. Remember the Basics. Be sure to sign and date your 1040. Review your personal identification – social security, address, business ID (for business owners), etc.

4. Opt for Direct Deposit. Another perk to filing electronically is that if you’re expecting a refund, you can get your check sent directly to your savings account. And because you avoid snail mail you can probably get paid a week early.

5. Add Up All Your Write-Offs. Deductible expenses here and there can add up to big savings come tax day. Job hunting-related expenses such as relocation (50 miles away from current home), travel and meals, copies, faxes, are eligible for a tax deduction. Also, if you are self-employed you may receive deductions for insurance paid out of pocket and any self-employment taxes. Don’t forget deductions for student loan interest and medical savings accounts, too.

6. Make a Copy of Your Return. It will come in handy when filling out next year’s return. Plus if you apply for a mortgage or a refinance, banks will want to see your tax return. Keep returns for an average 3 years from when it was filed, during which time the IRS is most likely to audit (if at all).

7. Stay Organized. As soon as you’re done filing make sure you keep all your paperwork organized. Your return, your paystubs, your receipts, will all come in handy down the road if (and I hope this doesn’t happen) the IRS decides to audit your return or if there is a discrepancy between the IRS records and what you claimed and you need to prove that, indeed, you filed everything correctly.

8. Out of Time? Get an Extension. If you absolutely can’t make the April 18^th deadline this year, you can request a six-month extension by filling out the IRS Form 4868.

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1 copy of H&R Block Deluxe (2 winners)

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This giveaway ends February 28th. Office Depot is providing the copies of software for the giveaway. All rules can be found under giveaway rules.

Interview: Organizing Your Office and Taxes with Farnoosh Torabi and Office Depot

Organizing is something that I have failed in since well forever. I clean and organize the house and then we go and get the mail and it gets laid on the counter again and well the disaster just starts over again. It seems that I’m not alone. A recent survey from Office Depot found that out of more than 1000 office employees, 93% said they feel being organized improves their performance, even though 81% admitted to keeping a disorganized workspace. I’m in the 81% for sure. My home office is practically none-existent because I’m so unorganized. The survey also found that 49% said they clean up clutter a few times a month or less. Again, that describes me! What should you keep organized? And how does being organized all year round help you out during tax season?

The survey indicates that the person’s desk, file cabinet and computer desktop are the three critical elements that need to be organized.

You can assess the mess and focus on three key areas: debt, savings, and your credit:

Gather bills and statements from all three categories and begin arranging them using labels, folders and other organizational tools

A shredder also comes in handy when you want to get rid of dated materials and personal information you no longer need.

Begin looking ahead – make sure your messy desk doesn’t create messy finances, especially when dealing with tax-related paperwork, mortgage or rent statements, car insurance bills, warranties and other important documents

I had the opportunity to submit some questions to Farnoosh Torabi a leading financial expert and she gave me some advice on how to be better organized. These are the questions I asked her:

We have a stacking issues in our house, we stack the mail we stack the papers, how can we get on top of stacking and keep our office clean?

What is the best advice you can give for preparing your taxes, where and when do I start organizing before filing them?

Where do I start when thinking about my finances?

Why does owning a house make such a difference at tax time?

More About Farnoosh Torabi:

Farnoosh Torabi is a personal finance contributor for Credit.com and Moneywatch.com. Her work and advice has been featured in national magazines and newspapers, including Real Simple, Glamour, Marie Clair Money Magazine, The Wall Street Journal and USA Today. The New York Times calls her advice, “perfect practical.”