By Lyneka Little | MainStreet.com
Next year’s tax season kicked off earlier this month, giving filers a head start to begin the process that often results in stress, panic and avoidable mistakes.
Start your countdown clock: If you begin now, it only gets easier. Here are some ways to get going:
GET ORGANIZED
This tax year, H&R Block TaxCut (HRB) has lowered the price of its software from $69.95 to $49.95 in recognition of the shrinking economy.
TurboTax has similar programs ranging in price points.
For those making less than $54,000, the IRS has a free file section that directs consumers to alternate web sites for e-filing.
While W-2 forms have not been sent out, knowing what software or web site you’ll use can kick start the process and lets you know which documents are needed to officially process your tax return.
THINK SAVINGS
In the days leading up to the end of the year, there are a few tax tips that can help shrink the amount you might have to pay next year. For example, prepaying your property taxes or even tuition are two ways to reduce the amount you owe the tax man.
For a lucky few the new tax season may put money back in to your hands in the form of a delayed stimulus check. How? Your eligibility for the 2008 stimulus check might have changed if you lost your job or your financial circumstances have changed dramatically in the past year.
H&R Block’s program TaxCut even inquires if you received an economic stimulus check to determine eligibility, according to Denise Sposato, director of Communications and Community at H&R Block.
AVOID ERRORS
Before you start, here are a few ways to avoid common last minute mistakes that occur when taxpayers rush:
* Look more than once at numbers to avoid transposing figures.
* Check calculations twice to avoid mathematical errors.
* Remember to complete a signature form to have your tax processed by the IRS.
* Sign your tax form. Without an electronic or written signature, your tax form is not considered complete and you may be charged late fees and penalties as result.
* Get an early start today.
