Money Saving Tax Tips for the Disorganized! – Part II

Saving Time on tax preparation Saves Money  - Part II

Save Money On Your Taxes

You heard my story, now start saving your documentation in an organized fashion in the same place in your home will also help you more than you know if you are ever audited.

1) Save time: Start today. Yes! As you compile your documentation for a this tax year’s filing, keep everything that you gathered  in one place so that you have a foundation on which to build for next year.This will save time and anxiety and allow you to file earlier avoiding the rush.

2) Save Money by filing online for Free! It isn’t always necessary to hire an accountant or tax preparation to file your taxes.  You can file online free by going to http://www.irs.gov/ you will be surprised to know what you can learn by studying the IRS website. Consider it an education!

3) Save Money by Doing Your Research! The amount of money you pay or don’t pay each year can result in either the a much welcomed credit from the IRS or the dreaded news when you get to the bottom of the return that you owe money.  Since laws change every year, invest in yourself and do a little reading about deductions that you might qualify for  this year.For example, did you know that you could qualify for up to a $1500 refund when you file if you did energy efficient changes to your home on your roof, HVAC, insulation or hot water heater in 2009?

4) It Takes Money to Save Money: Sometimes the process of income tax preparation becomes too complicated and you feel like your head will explode if you continue to prepare your return yourself.If you cry “uncle!” (Sam?) and hire a professional to do your taxes don’t beat yourself up. Do however choose wisely and ask for recommendations from a trusted advisor or family member.

5) Don’t Use Old Software! If you prepare your return yourself don’t use the software from two years ago.  Either purchase up to date software or see if your existing software offers free updates. Many do.  Old software could cost you a lot in missed deducations.

6) Capture Your Refund! Did you know that you can request your refund in the form of a direct deposit right into your checking account? I’m usually hard copy old school and I like to feel that check in my hand, however, this year I am going for direct deposit!