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It's Tax Time Again, Tips For Filing

 

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By Jason R Harris

Tax time. The worst time of the year for a lot of Americans. Here are some tips to hopefully help alleviate some of your nightmares this tax season.

First, file your own taxes. Unless you own some complicated business, just about everyone should be able to file their own taxes. E-filing has made this a breeze. If you go to some company to file your taxes for you, you're just pouring money down the drain. Save money and do it yourself. It's worth it. Just how easy is e-filing? Well, the e-file programs basically sit you down and ask you how much you earned last year and how much you spent. Then they take you step by step through the process. There is no confusing fine print to read, or long schedules to look up and, if at any point you still feel lost - simply hit the delete button. No harm, no foul. Even with complicated forms, the most time you'll spend on filing your taxes with an e-filing program is about an hour ... to quickly send your tax form through cyberspace to the IRS. Even better, with e-filing, you'll get your return fast. You can even choose for the return to be directly deposited into your bank account. WOW! Now that's fast and easy.

I don't want to blast Tax Filing companies, but you should understand this. Most of the people working in there during tax season are not tax experts. They are people that needed a job for a short time and got that opening. They basically ask you questions that the e-file software asks you and you can answer it just as easily on a computer as you can to a person. And on top of that, these companies can charge quite the fees to process the documents that you could have easily done yourself. Another danger is that your filer may make a mistake on your forms, and if the IRS catches it later, you're on your own to try to correct the mistake. More often than not, that tax company you used has closed its doors until next tax season.

Another thing to do is, KEEP YOUR RECEIPTS. I know, I know. Seems like a waste of time and space. But if you ever get audited they could be a life saver. Always ask receipts for everything and keep them stored away in a safe location. Come up with a filing system for you to easily store your receipts in a way that they can be easily retrievable.

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