Five Important Tax Tips for 2010 Taxes

It is that time of the year again where we all have to fill out tax forms. Tax forms can be confusing and very time consuming if you do not know what you are doing. If you plan on doing your 2010 taxes you might want to remember some of these five most important tax tips.

One of the first things you need to do in order to file your taxes is to gather all of your important information. You might have some receipts you need or canceled checks you are going to need to have on hand in order to fill out your taxes. Make sure you have all those important documents as well as any W2 forms and 1099 forms that you might be getting from an employer. Those forms should be arriving in your mail this week or next week if they have not already so in the meantime gather all other forms you will need. If you are organized and plan ahead, you should already have all of your receipts and canceled checks in a folder for this tax year. If you are not that organized this would be the time to start going through your paperwork in order to find those important papers.

Electronic filing is becoming increasingly popular and should be an option to look into for the 2010 tax year. Electronic filing is not done through the Internal Revenue Service but is done through a company like Tax Slayer, and a lot of them do not charge for federal returns. If you make under a certain amount you can get the state and federal done for free through the electronic filing which is great for people who do not make a lot of money. Another great advantage of electronic filing is that you will get your money directly deposited within 14 business days after you file. The electronic filing is more efficient and more reliable when it comes to getting your money fast and without the hassle of a paper check. Electronic filing is also great because you get instructions and guides on the paperwork you will need as well as a deduction checker which will help you get the most out of your deductions.

Make sure you weigh the options on doing your taxes before you actually do them, meaning do not rush to get them done. You want to weigh the options of a face-to-face meeting with a tax professional and the choices you have when it comes to preparing them yourself. Call around to some tax preparation centers to check on pricing and how they file your taxes and ask about any new client discounts they have available. If you are not looking to spend any money or are looking to spend very little when preparing your taxes, you will find out it is best doing them yourself. Doing your own taxes especially if you have one job and nothing else is really the best option, but depending on your situation it might not be the best option for you. Never think you have to rush into something just because you got your tax forms already, calm down and take a breath since you have until April to get them done.

If you are doing your own taxes this year, be sure to go over all the new deductions and credits that have been implemented this year. If you are using tax preparation software then the new tax credits should already be in the programming but just be aware of the many different tax credits that have been added this tax year. You should sit down with a printed tax form and manually go through your taxes before you actually sit down to submit the real thing. If you sit down and calculate everything before you get started and know what tax credits are available for 2010 then you will be ahead and know what to expect. Do not hesitate to call a tax professional if you are having trouble understanding something or filling in a deduction, that is what the people are there for. Most tax software programs will have a customer service line you can call and they can walk you through credits for this tax year as well as other problems you might have.

Consider direct deposit over a paper check even if you are getting your taxes done by a professional. As this is 2010, most things are becoming electronic and are completed a lot faster if done electronically. Getting your tax refund deposited into a checking or savings account will eliminate the possibility of lost checks or stolen checks and it will also mean a quicker refund. Even if you do not have a checking account or savings account, you can get prepaid cards at the store and most of them can have government-issued money like your tax refund added to them. Getting your taxes done and using direct deposit is so much easier on you and also eliminates the awful wait of getting a paper check in the mail.