Uncle Sam’s 8 Helpful Tax Tips

It’s time to gather your receipts and income statements. Tax time is approaching, and you might as well get a handle now on how much work you will have to do.

When you have made a list of your possible deductions, you can determine whether to use the Standard Deduction form or to itemize. Put the amount of Standard Deductions next to your list total to determine which is greater.

Don’t forget to calculate above-the line deductions. They are important because they decrease your Adjusted Gross Income before deductions. They are allowed even if you take the Standard Deduction.

Health Savings Accounts are one example. You can claim a deduction for money you paid into the HSA and money paid into it for you by someone other than your employer.

Another above-the-line deduction is a tax break that is part of the American Recovery and Reinvestment Act of 2009. The above-the-line deduction is the amount of state and local sales taxes paid on up to $49,500 for the purchase of a new car, light truck, motor home or motorcycle, if it was bought between February 16 and December 31, 2009

The IRS offers these tax tips:

1. If you file electronically instead of using a paper tax form, you will receive your refund in as few as 10 days.

2. Check the identification and Social Security numbers for each person listed. Missing or incorrect numbers will delay your tax refund.

3. Double-check your figures if you are filing a paper return. Check to see that you have used the right figure from the right tax table.

4. Sign the form. Both spouses and the tax preparer must sign it or it will be sent back to you for a signature.

5. When mailing a return, use the coded envelope included with your tax package or check the section called “Where Do You File?”

6. Electronic payment options are convenient and safe for paying taxes. Authorize an electronic funds withdrawal or use a credit or debit card.

7. An extension of time to file a return should be filed by the April due date. It is not an extension of time to pay so if you have an idea of how much you owe, include a check.

8. If you are sending a check with your paper return, make it out to “United States Treasury” and enclose it with, but not attach it to, the tax return or the Form 1040V Payment Voucher. The check should include the taxpayer’s Social Security number, daytime phone number, the tax year and the type of form filed.

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