Filing Your Taxes
By William Perez, About.com Guide to Tax Planning: U.S.
Preparing your tax return doesn't need to be hard or stressful. It just needs to be thorough and accurate. Give yourself plenty of time to work through the tax forms, and you'll have confidence in your tax return. As a reminder, your 2007 tax return is due by April 15, 2008. You can also request an automatic 6-month extension of time to file, making your deadline October 15, 2008.
Choosing the Right Tax Form
If you are filing your tax return on paper, you should use the simplest tax form you can. This will make your tax preparation easier, and the IRS will process your return quicker.
- Which Tax Form to Use?
- Form 1040EZ, the shortest tax form
- Form 1040A, most taxpayers qualify for the short form
- Form 1040, you need the long form if you itemize
- Directory of IRS Forms and Instructions
Finding the Best Tax Software
Tax preparation software can help you file your taxes accurately by walking you step by step through the tax forms. The best software programs offer tax planning utilities to help you compare different financial scenarios, prepare financial aid documentation, or maximize your retirement savings. Check out these reviews.
Reporting Income
Documenting your taxable income is the first step in creating a thorough and accurate tax return. Here's what you need to know about reporting your income to the IRS.
Tax Deductions
Did you know that you can claim some deductions without itemizing? These deductions are called adjustments to income, and they are claimed right on page one of your Form 1040. Some of the most popular tax breaks are here, along with some little known deductions that taxpayers should consider.
Tax Credits
Deductions reduce the amount of income on which you must pay tax. Credits, however, reduce your tax liability dollar for dollar. As a result, tax credits are a powerful way for you to minimize your taxes, or even eliminate your tax bill completely.
