Expert tips for doing your own taxes online
BPT
Thanks to the convenience of online tax return preparation websites, more Americans are doing their own taxes. Do-it-yourself tax preparation solutions give taxpayers a fast, convenient and affordable way to file income tax returns.
"Doing your own taxes really isn't as daunting as it may seem," says Jessi Dolmage, spokesperson for TaxACT. "Tax preparation solutions put the complicated tax code in plain English and give step-by-step instructions from start to finish. If you have questions, they offer resources and experts for help."
Dolmage says most brands allow you to try their products risk-free. You can use online products without creating an account, and downloadable software often includes money-back guarantees.
Whether you love or hate income tax season, save time and maybe even some money using these simple tips.
Start by gathering all your tax forms and documents, including:
- Last year's federal return (and your state return if applicable) for comparison purposes
- Form W-2 for wages, tips and pensions - keep in mind employers have until Jan. 31 to distribute to employees
- Form 1099 for interest, dividends, state tax refunds, retirement plan distributions and unemployment - issuers have until Jan. 31 to distribute
- Form 1098 for mortgage interest paid
- Retirement plan statements
- Schedule K-1 from partnerships, S corporations, estates and trusts
- Estimated tax payments
- If you itemize deductions: receipts for health care expenses, state and local income or sales taxes paid, mortgage interest and points, charitable gifts, work-related costs, investment expenses, and casualty and theft losses
- If you're a business owner, documents related to income statements (1099-MISC and payment stubs not reported on 1099s), health insurance payments and pension plan contributions (such as Keogh, SEP and SIMPLE)
- Social security numbers for you, your spouse and your dependents
- Bank account and routing numbers if you want to receive your refund via direct deposit or pay your taxes electronically
Second, make note of life changes in 2012. Events like marriage, divorce, college, switching jobs, having a child and moving can mean hundreds or thousands of dollars difference in your bottom line.
Next, take a few minutes to familiarize yourself with key tax law changes. Income taxes are a substantial component of your personal finances, so it's in your best interest to have a basic understanding of changes from year to year. For a summary of major changes, read the first few pages of Publication 17 on the IRS website at www.irs.gov.
When preparing and filing your return, be sure to:
- E-file. It's secure, convenient and you'll receive confirmation when the IRS has processed your return.
- For the fastest refund, e-file and choose direct deposit.
- Before filing, double check Social Security numbers, bank account numbers, and spelling of names. Misspelled and wrongly typed numbers and names are among the most common mistakes made on returns.
- File and pay by the April 15, 2013 deadline to avoid IRS penalties and interest. If you file for a 6-month automatic extension, remember any balance is still due by April 15.
- Don't procrastinate. Rushing can lead to costly mistakes.
More tax tips and information can be found at www.irs.gov. To do your federal taxes free with TaxACT Free Federal Edition, visit www.taxact.com.
+ Top Story
New York’s attorney general on Monday accused Wells Fargo and Bank of America of violating the terms of last year’s national mortgage settlement by failing to process hundreds of refinancing requests promptly.
Christine Pacheco, director of career services at The Art Institute of Colorado, and Kristin Frank, director of career services at The Art Institute of Phoenix, share the top dos you should include to get noticed and get your foot in the door - and the don’ts that could get your resume tossed in the trash.
Whether you're one of those people in need of a personal trainer or you're looking for work in a dismal job market, the bureau of labor statistics reports "employment of fitness trainers and instructors is expected to grow by 24 percent from 2010 to 2020, faster than the average for all occupations."
President Barack Obama's fiscal year 2014 budget is unlike any previous presidential budget request in recent history. It is not a statement of the president's vision for the federal budget. It does not represent what he thinks is the best course of action for spending, taxation, and...
Sheryl Sandberg. By now you know who she is, you've heard her story, and you have her book. You know the whole shebang, and you've made up your mind whether you like her or not. I must admit that before I met her in person, I was not an immediate fan.
African American investors report high levels of confidence in their financial future, along with optimism about the political and economic future of the country, according to a recent Wells Fargo nationwide survey.
A new report reveals houses are selling faster and for more money, yet another indicator of a rebounding housing market. According to the National Association of Realtors, full-year sales of previously owned homes increased by 9 percent in 2012 over the previous year.
The migration of women from the workforce into business ownership is one of the great economic realizations of the American Dream. The U.S. Women's Chamber of Commerce has grown to more than 500,000 members.