Friday, February 10, 2012

10 Tips to Help You Do Your Taxes

The annual tax deadline is approaching. April 15 will be here before we know it. Some will be ready, taxes prepared and mailed. But others will have continued to procrastinate, to put off doing those unpleasant and unwanted tasks such as gathering up paperwork, organizing information and getting out the pencils, the calculator and planning out hours to actually do the work. You are not alone. Millions of Americans wait until the last minute to file their taxes.


To help get you started, the following are ten tips to making filing your taxes a little easier:


Gather up the information you will need. You may need things like:


Income Documentation
• W2s from your employers
• 1099s from any self-employment income you received
• 1099-INT and 1099-DIV for any interest or dividend income you received
• 1099-SSA from Social Security Income you received
• Documentation from any other income you received, including tax forms from income received from partnerships, small businesses or trusts
Deduction and Expense Documentation
• Receipts
• Documentation of contributions to IRAs, medical savings accounts, and college savings accounts
• Receipts for expenses, including college expenses, moving expenses, medical and dental expenses, real estate taxes, charitable contributions and childcare costs
• 1098 (Mortgage interest) and 1098E (student loan interest)
• Cancelled Checks or Checking Account Statements
• Items to Substantiate Deductions


Begin by putting all of this information in one place. That way, when you are ready to sit down and complete your taxes, you already have everything you need.


Review Medical Deductions for ADHD Related Expenses


If you itemize your deductions, check over the many different types of things you can deduct for medical expenses related to your ADHD. For example, you can deduct transportation costs if you attended a conference or transportation costs to and from your doctor. A list of the most common medical expenses relating to ADHD is listed in Medical Deductions for ADHD Related Expenses.


Decide How You Will Complete Your Taxes


There are a number of ways you can complete your taxes. You can do it the old fashioned way and complete forms manually, with pencils, paper and a calculator.


You can purchase software, such as TurboTax or TaxCut. These programs make the task of completing your taxes much easier. There are deduction calculators to help you decide if it is better to itemize or choose the standard deduction. The programs will do all the math calculations for you. The programs also include all the different forms that you may need, so you won't get partially through and realize you need to run to the library or post office to pick up another form. In my experience, using one of these programs pays for itself in the time and aggravation saved.


Remember, if you choose to use one of these programs and e-file once you are done, you will need a copy of last year's taxes to use a number on a certain line of your taxes to stand as your electronic signature. If you can't locate a copy, you will need to mail your signature after you have electronically submitted your taxes.

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