Are you ready for tax time? Have you organized all your tax documents and saved your receipts all in preparation for the dreaded season? Most people haven’t. Life gets in the way. However, if you prepare yourself, tax time might swing in your favor.
First step
Start a checklist of all tax documents you will need, as they come in keep them all together. That way, once everything has been received, you are ready to file. Documents that may be on your checklist include:
· W-2’s (sometimes more than one)
· Interest statements (mortgages, student loans)
· 401k/IRA docs
· Property tax statements.
Your specific list will depend on your specific situation.
Second step
Now that you have your documents ready do you want to self-file or hire a professional? There are many advantages of both. Self-filing tends to be much less expensive, however you may miss out on money by not knowing the in’s and outs of taxes. Another route to go, is using a guided online program/software like www.turbotax.com or www.hrblock.com.
Last step
After you have filed, what do you do with your refund? Or, on the other hand, how do you pay back the government? Luckily, the IRS can provide payment plans to pay your taxes, which can make it easier than handling it as one lump sum. Do you save that refund? Invest? Splurge? Whatever you decide to do is up to you, just make sure your taxes are handled by April 17th which is the tax deadline for 2012.



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