Getting Ready to File Your Taxes

Adjust text size

Article Tools

print this article

add bookmark

digg this

reddit

save to del.icio.us

When it comes to your taxes, earlier is better. File early, get your return earlier. Of course, if you owe money, you’ll get your bill earlier.

Getting a jump on your taxes also means avoiding the last-minute push to get them done, and avoiding last-minute mistakes, which can be costly.
Here are a few tips to help you get a jump on your 2007 taxes.

1. Get ready for your records to fill your mailbox. Create a collection point, such as a large envelope, and when W-2s, investment statements and other tax-related documents start coming in, put them there. Some documents might have started trickling in during December, but most will hit in January. Just make sure to put all the material together so it’s at your finger tips when you get ready to fill out your return. Remember, the IRS gets a copy of just about everything you get, so the figures on those statements are critical to make sure your return sails through.
   
   
2. Make sure you have your Social Security number, your spouse’s number, if you file jointly, and numbers of any dependents you claim. The IRS will not process any return without these numbers. The IRS also checks these numbers against any tax breaks you apply for, such as the Child Tax and Additional Child Tax credits, credits for educational expenses and the dependent care tax credit. Make sure everyone has a valid Social Security number and that you write them down correctly.
   
   
3. Make sure you have all your forms. If you are among the slightly more than half of all taxpayers who filed their returns electronically last year, all the forms you need are provided in the tax software. Those who filed the old-fashioned way, by paper, will get a tax packet in January. A few of the most common forms are available at post offices and libraries. Most of the rest can be downloaded from the IRS' Forms and Publications Web page.
   
   
4. Decide how you want to do your taxes. Are you a do-it-yourselfer? Or should you hire a pro? Do you prefer pen and paper or a computer? If you use your computer to calculate your taxes, consider filing the forms electronically. E-filed returns are processed in about half the time of paper, according to the IRS. Plus, e-filing catches math problems and provides confirmation your return has been received. For 2007, taxpayers with adjusted gross income of $54,000 or less can e-file at no cost. In mid-January, the IRS will start accepting electronically filed returns, as well as kick off its Free File program.
   
   
5. Use direct deposit. Regardless of whether you file electronically or by paper, this year have your refund check deposited directly into your bank account electronically in as many as three accounts. You'll just need to file Form 8888. Direct deposit offers one big advantage: No checks lost in the mail or returned to the IRS because of a bad address. And you'll have access to your refund sooner.
   
   
6. Don't panic. Taxes make everyone nervous, but by starting early, you've got time to get the answers and make sure you're taking full advantage of every tax break for which you're eligible. If you have a specific question, you also can visit the IRS Web site or call its TeleTax service at (800) 829-4477 to get recorded information on more than 140 tax topics.