Tax time is coming up

One of the easiest ways to find money now is to get a jump on filing income taxes. A lot of people wait until April to get everything together. They bring them to their tax preparer and want a rush job. The problem is that waiting opens you up to mistakes and a return will take longer to get. Anyone wanting to get the jump on filing, here are some tips.

Getting ahead on taxes

The first thing taxpayers need to be aware of is Schedule M. Schedule M is a new document for the “Making Work Pay” credit money received on paychecks. The new payroll tables from last year that put an extra $ 400 in the pockets of single people or $ 800 for married couples filing jointly. Some taxpayers might have paid a bit too much into the fund. To correct the over taxation, consumers have to file a Schedule M.

Secondly, you have to get your paperwork together. January to mid-February is when W-2s and other tax-related documents start coming in. Consumers should create a special place for all tax documents. The needed information on these documents and having them in one place will make it all that much easier to fill out tax paperwork.

Thirdly, you have to double check things like social security numbers. It sounds really obvious, but there are a lot of returns that are received with the wrong numbers. Processing is held up along with refunds for thousands of other people. Having the right number is critical because these numbers have so many transactions keyed directly to them. Everything from income statements to retirement plan contributions are recorded based on the social security number.

Fourthly, you need to know what filing package is the best to get. The IRS package is based on the filing history of a taxpayer, but that can change. Most documents can be retrieved online or at the post office or library. For taxpayers who had a major change, like marriage, it’s important to find the right documentation. Married couples looking for money now have to file with the right documents and in the right way.

Fifthly, consider filing electronically. Studies have shown that last year about two-thirds of all taxpayers filed electronically. The IRS processed E filed tax returns 50% faster than paper returns. Many of the software programs have a review function, where the return is double checked for innaccuracies and errors. The good news for E-filers is that taxpayers may qualify to file for free. Taxpayers this year with adjusted gross income of $ 57,000 or less for 2009, can file for free thanks to a cooperative program between tax software companies and the IRS.

Finally, taxpayers can sign up for direct deposit. It takes weeks for a paper return to reach the IRS office, be processed, the check to be cut, and then make it to the post office. Conversely, it usually takes 10 to 14 days for a direct deposit to get to a bank account. Taxpayers that desire direct deposit have to file Form 8888, but it speeds up the process.

Filing for 2010

Now more than ever, filing tax returns is being made simpler and simpler for taxpayers. Those who want their tax return money now should follow the above tips to speed the process up. Millions of tax returns have to be reviewed and people trying to quickly file should use every advantage they can get.