Tuesday, February 16, 2010

Survival tips to whip your tax returns into shape

Are your tax returns out of shape? Don't fret. In a three-part series focusing on how to survive the 2009 tax season, we've assembled a few tips to battle that post-recession bulge. No weights or cardio work necessary.

Time for part three, so whip out that No. 2 pencil one more time.

Question: What can I do to avoid mistakes and problems on this year's tax return?

Double check your numbers!
Most importantly, make sure you got your Social Security numbers correct. Let's say you wrote down the wrong social security number for one of your children. The IRS will disallow the dependent, and send you a brand new tax bill. Do a thorough double check when you finish filling out info. it's worth the extra time.

Round up your charitable contributions
You can't deduct your charitable contributions if you forget to document them. Deductions are allowed for political groups, foreign organizations, social clubs, donations to individuals, and for a mile driven in service for a charitable cause. So don't forget to document.

File your taxes electronically
Want to avoid the paperwork? File your taxes on the computer this year. Filing through online services like TurboTax will speed up your return, and save you from many errors that might not have been caught on paper. The IRS will give you a chance to go back and fix any mistakes before your return is accepted and processed.

Click here for part one and here for part two of the three-part series.

Also, Consumer United has teamed up with TurboTax to make times a little easier. File your simple return for FREE with TurboTax Federal Free Edition. Click here to start saving.

No comments: