Don't get high blood pressure over tax-time.
It can be easier than you think to file your 2010 tax return.
Before you even start know that at tax time, everyone must protect against mail theft.
This includes your tax refund and any related materials.
Mail thieves on on the look-out for easy money which they know is placed in mailboxes.
Secure your finances, report your income and file on time to avoid interest and fees.
1.
Hopefully you have kept good records.
You will need to locate your last year's tax return.
Also, have the pin number you used if you filed online last year.
Keep documents you will need to prove your deductions and tax credits if you get audited.
2.
It is best not to wait until the last minute to prepare your tax return.
If you do procrastinate, you will be rushed and may make costly errors.
3.
Changes in the tax code are important to know.
Some may save you money.
There are two websites to help you do this.
The website of the Internal Revenue Service (IRS) can be helpful.
Go there and click on the "Individuals" tab.
Key changes such as tax breaks still applicable under the Recovery and Reinvestment Act, such as energy home improvements and green automobiles can be found on the tax act website.
4.
File and pay your taxes on time to avoid having to pay late fees and interest.
The due date for April 2011 is the 18th, since the 15th is a federal holiday.
If you can't pay your whole tax liability all at once, use the IRS Form 9465 to apply for a payment plan agreement.
Forms are all listed on the IRS website.
5.
Download tax preparation software.
It will do the math for you and alert you to things like missing data and savings opportunities.
Some of the software programs even answer questions you may have as you are filling in the forms.
6.
Research tax preparation solutions carefully.
Some are free, and offered by volunteers who will do simple, non-business returns.
Some software is free, also.
Be sure to find out how and when you pay for the non-free packages.
Check out the guarantees offered for accuracy of your return.
It you decide to use a tax preparation company such as H&R Block, for example, you can be assured that they will enter your information correctly and ask you all the right questions.
Know that there will be a charge.
Just avoid taking you personal information to some unknown outfit without a known track record.
Some have cropped up as identity theft mills and you certainly need to avoid them.
7.
File your taxes electronically (e-file) or you can do it easily by snail mail if you have a locking security mailbox.
Nearly 70% of all federal returns last year were e-filed.
You can get a response within 48 hours.
You may be asked to provide documents if you claim First-time Home Buyer or Adoption credits.
8.
You can expect to get your refund in about a week if you request automatic deposit into your bank account.
That is the safest way to get your refund.
Mail thieves are looking for tax refund check in people's mailboxes these days, as mail theft leads to identity theft also.
Of course, if you have a heavy duty locking security mailbox, you'll have no worries about getting a check in the mail.
So, just take your time and get that tax return filed in the way that works best for you.
It doesn't have to be a stressful process.