Categorized | Saving & Investing

Tax Filing:Tips, Do's and Dont's

Tax planning is an essential element of, management of personal financial resources.Need for tax planning is more overnight viagra acute, in these times of  shrinking jobs,rising prices of everyday use items, ever growing  demand of funds for Children education and  Housing.

In these  financially hard times, every dollar saved, followed by discrete spending  will be welcome, by majority of households. At least  in these days of recession, we need to give a fresh look at our concept of  spending.

Tax season 2010 is in full swing.It is therefore important to understand the do's and dont's,at the same time, remember the tips before and after filing a tax return.

D'os

Read  Important Changes for 2010 Tax season. Understand, what is applicable to you and get hold of  documents needed to claim a credit.

Select a Reliable Tax Preparer. Tax preparer must be  current  on latest changes in the tax laws. He/She should be able to provide the best possible service  and be diligent in giving advice to a tax payer.

Know your Rights as a Tax Payer.You have a right to representation.Your civil rights are protected.You have a right to appeal any action taken by the IRS.Innocent spouse relief is available in some cases.

File Your Tax Return In Time.If for some reason cannot, then ask for extension. It cost you nothing.If you don't  file tax return in time,there is a      penalty.You pay $135 or 100% of tax owed,whichever is smaller.

E-File. your tax return. In case you claim First time home buyer credit, then file a paper return.

Don'ts

Frauds.  Do not give your personal information. Be watchful of  any impersonations. These people try to contact on phone, e-mail, internet site, and social networking  sites and obtain personal financial information for fraud purpose.

Avoid Accepting A Instant Refund. This may have additional fees, charges or interest attached. Some times this would be in the range of $100 to $350, which you have  to pay to get instant refund.

Tips

Making Work Pay Tax Credit. Workers must  file schedule M, if you worked during 2009, to claim $400(individuals) $800(married couples).Check  if you qualify.

IRS 2009. Open a file  marked, to secure all your W-2's, receipts and other tax related documents handy, if you have not already done so.

IRS 2010. Keep a file marked, for tax year 2010, to save all the related documents.

Free File Program. Use this program to file your return, if you are eligible. This cost you nothing.

Refund. Best way of receiving  refund is direct from IRS. Refund goes direct to your bank account.This is received  faster than a check.

If You Cannot Pay The Full Amount Of Tax You Owe. File your return in time and pay as much as you can. Call IRS to discuss your payment options. Some times they let you pay in installments. If you decide to in installments,remember they come  with a cost. IRS may charge you penalty/interest on the amount of  tax you owe.One option is to  borrow money to pay taxes.

Readers are welcome to add more tips, do's and dont's for filing tax returns.

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This post was written by:

- who has written 18 posts on 8000 Credit dot Org.

Dennis is a finance and economics expert.

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