Practical Tax Season Tips

Now that tax season is truly upon us, I thought I'd share some practical tips on preparing and filing your returns correctly.

1) Make sure the payor named on your 1099 matches the entry you make on your return. Especially these days when some banks disappear and new ones take their place, don't just proforma what the entry was last year.
2) Make sure you sign and date your return before mailing.
3) If you receive a 1099 that you think is wrong, call the payor to get it corrected. If you just enter the amount you think is right and it is different from what is reported, you will generate a notice from the IRS.
4) Double-check for all the credits to which you are entitled. This year there is a new credit called the Making Work Pay Credit. If either spouse works and the couple makes less than $150,000, you get this credit. Single people making less than $75,000 get this credit.
5) Don't procrastinate - organize and prepare early.
6) If you owe money and don't have it, attach form 9465 and ask the IRS for a payment plan. For amounts less than $25,000 these are routinely granted.
7) If you have questions or need some forms, go to the IRS website: http://www.irs.gov/
8) There are a lot of scammers this time of year. Please note that the IRS wil NEVER send you an email.
9) Ask all the tax bloggers questions. We have boatloads of information and we want you to get it right.
10) Last, but not least - if you have a significant other in the tax preparation business, please be patient with them and tell them you love them. They don't really want to be working those horrendous hours, but it's what they do... and they miss you, too.