Tax Tricks and Tips

To make your tax filing easier this year, and to help you find ways to keep more of your money, we have compiled a number of the best tax resources around. We hope you find these tips and tricks helpful!

Remember, this year's filing deadline is April 17th, 2012.

Best Practices

For best practices and tips & tricks, check out the IRS website. Some of the helpful tools available to you are:

• Find out if you qualify for the Earned Income Tax Credit.
• Get your Electronic Filing PIN, a one-time code used to verify your identity.
• Find out the status of your refund and more.
• If you can't pay your taxes in full and on time, find out if you qualify for an Online Payment Agreement.
• If you have tax law questions, use the Interactive Tax Assistant to help find answers.
• Use the Sales Tax Deduction Calculator to figure the optional amount you can itemize on Schedule A, Form 1040.
• Use the Alternative Minimum Tax (AMT) Assistant to determine whether you may be subject to AMT.
• Use the IRS Withholding Calculator to estimate the amount that should be withheld from your paycheck for federal income tax purposes.
• Try the First Time Homebuyer Credit Account Look-up Tool.

Target Tax Credits: certain credits are for certain people. Are you one of them?

• Education Credits - Help offset education costs.
• Adoption Credit - Take up to $13,360 for qualified expenses paid to adopt an eligible child.
• Earned Income Tax Credit - You may qualify if you earned less than $49,708 in 2011.

Helpful Information

For other helpful information, please see the listed links below:

• For commonly asked questions, see the IRS FAQ.
• The IRS keeps a list of recent developments and announcements regarding Tax Forms, Instructions and Publications.
• Find where to properly file your tax returns
• IRS goes mobile with IRS2Go, a smartphone application that lets you interact with the IRS using your mobile device. IRS2Go helps you get the information you need: whenever you need it, wherever you are.

Tax Prep Software

Not all online Tax Prep Software are the same. According to toptenreviews.com, Turbo Tax received the Gold award for the 2012 Best Online Tax Software Reviews and Comparison.

Top Ten Reviews compiles their ratings according to features, ease of use, instructions & guidelines as well as help and support. Here’s their Top 9 of 2012:

1. TurboTax: Both Federal and State filings. Box or download version also available.
2. H&R Block: Both Federal and State filings. Box or download version also available.
3. TaxAct: Both Federal and State filings. Box or download version also available.
4. CompleteTax
5. Tax Slayer
6. Tax Brain
7. OnePriceTaxes: Both Federal and State filings. Box or download version also available.
8. OLT (OnlineTaxes)
9. ExpressTaxRefund.com

Filing Checklists

To help you make sure you haven't missed anything, make sure to go through the proper checklist below:

• Individual Filer Checklist

  • General Information

    • Full name, SSN for yourself, spouse, and dependents
    • Date of Birth for yourself, spouse, and dependents
    • Voided Check (if electronic filing)
    • Tax returns filed from the prior 3 years
    • Payments of Estimated Federal, State, local taxes paid
    • Presidential Election Fund Contributor Y/N

  • Itemized Deductions (Schedule A)

    • Medical Expenses (Health Care – Prescriptions, Doctors, Dentists, Eyeglasses, Medical Insurance, Long Term Health Care Insurance)
    • 1098 – Mortgage Interest Expense
    • Real Estate Taxes and other taxes paid
    • List of Charitable Contributions
    • Un-reimbursed Job Expense
    • Union/Professional Dues, Job related educational costs, Investment expenses, Job search expense, Hobby expense, Work uniforms, safe deposit box, tax preparation fees.

  • Income Information

    • W-2s
    • 1099 – Interest and Dividend Income,Retirement, Annuities, tax refunds, Unemployment
    • Social Security received
    • Alimony received
    • Gambling income and losses
    • Cost Basis of Securities Sold
    • Rental Property Income

  • Tax Credit & Deduction Information

    • Child Care Expenses
    • 1098-T Education Tuition Expense
    • Interest Paid on Student Loans
    • Alimony Paid (need Social Security number of recipient)
    • Medical savings account
    • Moving expenses
    • IRA contributions
    • Rental Property Expense & cost basis
    • Adoption expenses

• Business Owner Filer Checklist

  • A copy of the last three year’s Federal and State tax return
  • Articles of Incorporation, partnership Agreement, Operating Agreement, etc.
  • Copy of current period balance sheet, income statement, trial balance and general ledger.
  • Prior year financial statements
  • List of all business owners including:
    • Name
    • social security numbers
    • address
    • percent of ownership
    • date ownership acquired
    • detail of distributions
  • Schedule of owner fringe benefits received
  • Schedule of loans to/from owners including loan agreements
  • Details of any related party transactions
  • Copies of all payroll forms and 1099 forms for the year
  • Amounts of any estimated tax payments
  • Listing of interest and dividend income
  • Vehicle information and use, including vehicle leases
  • Information on any employee benefit plans including retirement plans, health insurance, etc.
  • Details of meals and entertainment expense
  • Any Internal revenue Service and Department of Revenue correspondence received during the year
  • List of any activities in other states
  • Details of fixed assets and depreciation schedules

• Self-Employed Filer Checklist

  • Income

    • List of bank deposits
    • All 1099s
    • Other income (interest etc.)

  • Cost of good sold

    • Cost of good sold
    • Beginning inventory
    • Purchases of goods sold
    • Materials & supplies
    • Ending inventory

  • Auto expense

    • Lease payments
    • Auto insurance
    • Interest of auto loan
    • Repairs & maintenance
    • Total miles driven
    • Business miles driven
    • Total gas purchases
    • Date car purchased
    • Model and make of auto

  • Salaries & wages

    • Total gross wages paid
    • Company paid FICA
    • Federal unemployment paid
    • State unemployment paid
    • Worker’s compensation paid

  • Expenses

    • Advertising
    • Commissions paid
    • Liability insurance
    • Interest paid
    • Legal & professional fees paid
    • Office supplies
    • Rent paid
    • Dues & subscriptions
    • Travel expense
    • Meals & entertainment
    • Utilities
    • Bank charges
    • List of assets (cost & date acquired)
    • Health insurance premiums
    • Office in home
    • Total square feet of home
    • Total square feet of office
    • Mortgage interest
    • Real estate taxes
    • Utilities paid
    • Home repairs
    • Home insurance