Down to the Wire Tax Tips

If you are in the home stretch to complete your tax return, the few tips below might just be the help you need.

1. If you are manually preparing your tax return, search the web for free online tax software as it helps to reduce calculation errors.
2. File your taxes electronically to eliminate the need to find a post office open to midnight.
3. Take your mileage deductions for medical visits, charitable activity and business, along with the cost of parking and tolls. Keep a log as proof.
4. Cash and noncash contributions to charities or nonprofits some of the major deductions taken by taxpayers. Be sure to receive and keep a statement from organizations for donations total $600 during 2012.  If audited, the IRS requires contemporaneous verification of your gifts.  The statement must indicate no good or services have been received in exchange for your donation.
5. Include all 1099 Miscellaneous income.  Report even if you didn’t receive a statement.
6. Self-employed individuals with net income over $400 are subject to payment of self-employment taxes, half of which is deductible from your income.
7. Don’t forget your home office deduction.  A portion of utilities, insurance, and other items are allowable deductions if your home office space is used only for your business. This can be a tricky deduction so make sure you follow IRS guidelines.
8. Beware of tax scams or identify theft.  If it sounds too good to be true, well, you know the rest. Don’t fall for it.
9. If you are extremely behind in filing your tax return and haven’t filed for 2009, April 15 is the final day to file and still claim a tax refund.  There is no time limit if you owe taxes.
10. If you just can’t meet the April 15 deadline, file an extension for an additional six months of time to complete.  But don’t wait too long.  The October 15 deadline will approach quickly.