Tax Tips

If you are sitting on the fence about how to prepare and file your tax return this year, consider doing it
electronically through reputable providers including TaxACT.com, turbotax.com and HRBlock.com.
These sites provide free preparation and assist in finding deductions that you normally would not think of.
Filing taxes electronically is very cheap, but you have the option of printing your prepared forms and
mailing them via the U.S. Postal Service.

Be sure to have all the documents you need to prepare your taxes. These include: W-2 forms from your
employer, 1098-E forms which show interest paid on student loans and 1099 forms for work done as an
independent contractor (for example, regular musician at a nightclub, nanny jobs, etc.).

The absolute worst idea for filing taxes is through a company that gives early anticipation loans! Even if
you think you need the money immediately, think of the fact that most of these loans charge you
outrageous interest rates. If you file electronically through one of the reputable Web sites, you can usually
get a direct bank deposit within 10 days.

Finally, if you get huge tax returns, think about decreasing your withholding amounts. Big tax returns are
an invitation to tax auditors to come knocking at your door. Think of a big tax return as money that you
loan the government for the past year at no interest to them. You might find it more beneficial to change
your withholding amounts and get a smaller tax return while you increase the amount you receive in your
paycheck.