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Tax tips for 2010


As the 2009 tax filing deadline looms, here are ten tips that will help expedite and streamline your filing:

  1. Start gathering your records. Round up any documents or forms you’ll need when filing your taxes. Examples are receipts, canceled checks and other documents that support your reported income, or a deduction you’re taking on your return. Be on the lookout for the W-2s and 1099s coming soon from your employer; you’ll need these to file your tax return. Official IRS tax forms are available on the IRS website or at many municipal or county facilities such as public libraries.

  2. Try e-file. The IRS itself does not allow you to fill out a 1040 on its website; you need to work with an e-file partner or provider, including many tax preparers or software like the popular TurboTax from Intuit. E-file is now the way the majority of returns are submitted. Last year, 67% of taxpayers filed their returns electronically. Not only is electronic filing convenient, but e-filers enjoy faster refunds, greater accuracy (because software does the math). Even if you owe money, you can file anytime while deferring payment until April 15. For more information on electronic submission of your tax forms, visit the IRS e-file help page.

  3. Check out free tax preparation resources. If your income is $57,000 or less, you may be eligible for free tax preparation software and free electronic filing. The IRS also has special resources for qualifying military and elderly taxpayers

  4. Give yourself an extension. If you can’t get your 1040 complete by April 15, you can give yourself an automatic six-month extension to October 15 to file. According to the IRS, you must file Form 4868 by the regular due date of your return (usually April 15) and pay any estimated taxes owed. The extension is only a filing extension; any taxes owed must still be paid by April 15.

  5. Consider other options. When completing your return, there is no one set way. You can assemble it yourself or go to a tax preparer. You may be eligible for free face-to-face help at an IRS office or volunteer site. Give yourself time to weigh all the different options and find the one that best suits your needs.

  6. Consider direct deposit. Taxpayers who choose direct deposit will get their refunds faster than those who receive a paper check. Taxpayers who both e-file and use direct deposit will receive their refunds even faster. Also, a refund that is directly deposited in a savings or checking account cannot be stolen or lost in the mail.

  7. Take advantage of GuideStone’s helpful resources. GuideStone has information that can help churches properly report taxes. You can also find specialized information to help ministers with some of their unique tax situations.

  8. Review! Review! Review! Don’t rush. We all make mistakes when we rush. Mistakes will slow down the processing of your return. Even if you’re e-filing, double-check everything. The IRS cites that incorrect Social Security Numbers and math calculations are the most common errors made by taxpayers.

  9. Start planning for next year! Find out your maximum retirement contributions for 2010. If you are a minister, evaluate the way your church structures your compensation and make sure you take full advantage of the housing allowance. More information for ministers can be found in GuideStone’s Ministerial Tax Issues.

  10. Did you know? According to the IRS, last year…
    • The average refund was $2,753.
    • 67% e-filed — Of those, 67% used a tax professional and 33% were self-prepared.
    • The IRS, under a Congressional Act, launched e-file in 1986. In 1998, Congress set   
      a goal for 80% utilization of e-file by 2007. Actual 2007 utilization came in at 59%.
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