It's not even the end of the year, but fall is the perfect time to start thinking about your taxes. With plenty of time left to spare in the year, you can make sure you pay the right amount next April 15, or even maximize your deductions.
It's tax day, and if you haven't filed yet, you've still got about 12 hours to get your return i the mail. There are even faster ways to get your return to the IRS without going through the U.S. Postal Service. The IRS is pushing hard to get more Americans to file electronically.
Avoid getting auditing by not making easy mistakes that can draw the IRS' attention, like math errors, forgetting about interest and dividends when calculating your income. not using the IRS' pre-printed label, forgetting to sign and date your check, using the wrong tax table, and missing the deadline to file an extension. Also, if you are self-employed or in other professions that tend to draw attention, make sure you keep all of your receipts.
Once you've got your deductions lined up, wouldn't it be nice to know where your W2 is? Especially now that it's tax time? A new online payroll service called Surepayroll allows you to access your pay information, 24/7 from any computer in the world with internet access. Other programs allow you to calculate the exact deduction value of your charitable donations and contributions.
You may want some help in filing your income taxes electronically and not know where to go. The City of Chicago offered free income tax filing help to residents including filing for the earned income tax credit. Mayor Daley encouraged income tax filers to sign up for bank accounts so they could have their income tax refunds direct deposited.
In 1997, the laws that taxed the profits from the sale of your primary residence were changed. Out went the 24-month rollover replacement rule and the one-time exemption. However, many tax questions remained unanswered.
At the end of the year you can take some steps to prepare for your taxes for the next year. You can prepare for taxes by saving money to your 401(k) account or prepaying your mortgage. What else can you to do prepare for filing your taxes?
If you made any donations last year, it's time to find the value of those deductions. Donated items must have been donated by the end of the year, and the total value of the deduction can't exceed 50 percent of your adjusted gross income. If the value of a donated item exceeds $500, you'll need to file a special form with the IRS.
When you're getting ready to file your income taxes you may hear about ways to cut your tax bill. Income tax scams abound so you need to be very careful when someone tells you they know a way that you can pay less in taxes. Among the tax scams is one where you can take deductions for a home based business.
If you're hoping to trim your 2001 tax bill, you'll need to plan now, and make your move before the end of the year. The steep drop in the stock market and lower tax rates starting in 2002 make it a whole new ball game.
