Income Tax Preparation - Online Income Tax Filing and Income Tax Return Service for Federal & State Taxes.

Tax Tips

Donate to charity - It pays to be charitable, especially at the end of the year. Donating cash is always a good idea. You can also donate household goods, clothing, and other items. Under the Pension Protection Act, you will need a written receipt for all charitable donations, and donated items must be in good or better condition. You can also deduct the cost of driving for charity at 14 cents per mile. You cannot take a charity deduction, however, for the value of your time or services when volunteering.

Pay your bills - Doctor Bills, insurance premiums, buy eyeglasses, or stock up on prescription medications. You can take a deduction for medical expenses exceeding 7.5% of your adjusted gross income.

Pay your property taxes - Real estate taxes are tax deductible. If your property tax bill is due early next year, you might want to pay it now and take the deduction.

Get organized - Give enough time to get your "stuff" in order. Properly categorizing your expenditures now will save you a lot of time later. During tax filing time, you will be glad you grouped your expenditures by category. A good place to start is to look at your tax returns for the last three years and make a list of items that were reported. Like you should expect to receive a W2 form from each of the employer you worked for in 2008. The point is to start getting organized early so that when the time comes to file your taxes, you have all the information you'll need in one place.

Appropriate Documentation - Proper documentation is needed for anything that is placed on your tax return, and you should be aware of documentation requirements. For taxpayers who are self-employed, start preparing your profit and loss statements now. The sooner the profit and loss statements are done, the sooner your tax preparer can begin working on the return, which could enable you to file an earlier tax return. In the event that money is owed, this gives you more time to make arrangements for generating the funds needed to pay the debt.

Get Knowledgeable - For taxpayers who are to file their taxes online, get registered & get your userid & password quickly. Read the instructions & help advice available on the online tax preparation program & get more knowledge & information about filing your tax returns online.

Be Careful and Thorough - avoid common problems like mathematical errors, filing correct documents etc. These little oversights can end up costing you time and money.

Know When To Ask for Help.

Late Filing - If you do not file your return by the due date, you may be subject to a penalty and interest. To avoid penalties and interest, file for an extension by before this date.

Filing an Extension - When you file an extension, you can postpone filing your return until October 15.

However, if you do not pay any tax owed by the due date, you will accrue penalty and interest charges.

E-Filing Tax Extensions - The IRS offers e-filing of extension applications. The IRS will process Form 4868 through the original due date of your tax return. By filing an extension, you postpone the filing date of your return until October 15; however, any tax due on the return will be subject to interest and penalties if not paid by the due date.