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 18th deadline this year, you can request a six-month extension by filling out the IRS Form 4868.
Enter to Win:
1 copy of H&R Block Deluxe (2 winners)
Tell us in the comments how you get organized for tax season
Tweet or RT this post and include the link to the post
H&R Block At Home Deluxe #Giveaway (2 winners) @MomStart http://bit.ly/eAtHnG
List this giveaway on any giveaway site, dig or stumble (or any of the share options listed below)
Blog About this Giveaway (10 extra entries, linking to the giveaway)
Follow/Like Mom Start on Facebook
Follow me on twitter tell me your twitter ID
Follow me on Google Friend Connect
This giveaway ends February 28th. Office Depot is providing the copies of software for the giveaway. All rules can be found under giveaway rules.