Two things in life are certain: death
and taxes. While you can't do too much
about death, you can reduce the pain and
suffering of filing tax returns with a few
easy steps offered by the Atlanta office of
Consumer Credit Counseling Service.
"It's human nature to avoid filing
taxes," said Gay Watson, communications
director for Consumer Credit Counseling
Service. "But by filing when you're
not under the critical deadline of April
15, you're more apt to be more thorough
and perhaps capture deductions you may
have overlooked. The key is to file as
early as you can. That way, you can avoid
some of the costly mistakes most consumers
make."
If you were organized at the beginning
of 2005, you gathered your tax paperwork
all year long. You set up folders
to capture nonreimbursed employee
expenses, including mileage, uniform
costs, continuing education, professional
memberships and subscriptions.
As a health care professional, perhaps
you worked independently in addition to
your full-time job. Because they must be
mailed to you by Jan. 31, you should have
received your 1099 forms for this extra
work, but have you itemized the expenses
associated with extra jobs? They may be
deductible.
"Being organized all year long can save
you lots of time when it comes to filing,"
Watson said. "Believe it or not, someone
who has kept records throughout the
year can fill out their tax return in just a
few hours."
Here are some tips for making filing
simpler:
Gather all your documentation - W2s, 1099s, receipts for possible
deductions, mortgage interest and tax
payments, and investment and student
loan statements.
Double-check that the name and
Social Security number on your tax forms
match your Social Security card. If the
name or number on the card is incorrect,
call the Social Security Administration at
800-772-1213.
Round it off. It's easier to keep everything
straight if you round off cents to
the nearest whole dollar. Drop amounts
less than 50 cents and increase amounts
between 50 and 99 cents to the next
whole dollar.
Do the math. Check and recheck
your calculations. Have someone you
trust check it.
Take credit for your job. Whether
you're out of work or employed and looking,
job-hunting expenses are deductible
as miscellaneous itemized deductions.
Keep receipts for resumes, postage,
travel, lunches, etc.
Be charitable. Make sure you get
receipts for cash contributions and for
donating used items. Noncash contributions
are deductible at wholesale fair
market value.
File early. Avoid the mad rush on
April 15. If you're using the U.S. Postal
Service, send your form "return receipt
requested." Write the receipt number on
the top edge of your form before you seal
it as proof the form was in the envelope.
The IRS also accepts delivery by Airborne
Express, DHL Worldwide Express, FedEx
and UPS.
File electronically. E-filing is easy.
Go to www.irs.gov and click on Electronic
Services. Telephone help is available
all hours at 1-800-829-1040 (TTY/TTD
1-800-829-4059). You also can check the
current mileage allowances, contribution
limits for retirement plans and answers to
other questions.
Make a copy of your return for your
files. Write your name and Social Security
number on any accompanying materials,
and attach them securely.
Seek help. If you are concerned
about how you will pay your taxes or
would like help budgeting so you will
not be in the same position next year,
contact CCCS at 1-800-251-2227 or
www.cccsinc.org."If you're running late, you can always
file an extension with Form 4868 by April
15," Watson said. "Just remember, sooner
or later, you'll have to file. The sooner
you know whether you're paying or getting
a refund, the better you can plan."
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