The New Year is upon us once again. That means the income tax season has begun and important tax documents should be arriving in the mail. Even though your tax return isn’t due until April 2011, why not begin the year off right and start filing your tax return early. Here are the top tax tips for 2011.

1. Gather all your tax related documents Pull together the documents and forms you’ll need when filing your taxes. You’ll need W-2 forms, 1098 forms to document the interest you pay on your mortgage, receipts for your charitable donations, documentation of property taxes you pay, trade information to calculate taxes due on capital gains and dividends, canceled checks, and other documents related to income or deductions you’re claiming on your return. Organizing your tax paperwork is definitely the top tax tip for 2011.
2. Keep an eye on the mail W-2s and 1099s will be coming soon; you must have these to file your tax return. Another great tax tip is to know that your tax documents come from different sources: employers provide W-2s, financial institutions send tax documents related to interest, dividends, broker transactions and retirement plans, lenders provide the tax data for mortgage interest and real estate transactions, and taxing authorities cover property tax and income-tax refunds.
3. Use Free File Let Free File do the hard work for you with brand-name tax software or online fillable forms. It’s available exclusively at http://www.irs.gov. There is an option to prepare your tax return and e-file it for free for tax season 2011.
4. Try IRS e-file IRS e-file is the most common way to file a tax return. Starting in the 2011 tax year, many tax preparers will be required to use e-file and will explain your filing options to you. Combine e-file with direct deposit and you can get your tax refund in as few as 10 days.
5. Consider other tax filing options You can prepare it yourself or have a tax preparer file your tax return. You may even be eligible for free face-to-face help with an IRS office or tax volunteer. If you have outstanding tax issues or owe back taxes, consider visiting a tax attorney before preparing your tax return.
6. Direct Deposit Get your tax refund deposited directly into you bank account. It’s faster and safer than waiting for a check from your postman.
7. Double check your return Believe it or not, the most common tax return errors are the Social Security Number and math calculations. Take your time and double check everything. Mistakes will slow down the processing of your tax return and may even increase your chance of being audited.

Following these top tax tips will make your 2011 tax season the smoothest ever.

source: irs.gov

The month of April brings warm weather, major league baseball and the deadline for filing your 2010 income tax return? If you haven’t prepared your income tax, you still have options for filing before the April 15 tax deadline. Here are some of the options for filing your tax return.

The quickest and most efficient way to get your tax return in on time is to sign up for one of the many online tax services. They provide the software so you can file your income tax online. Most online tax services offer the service for free or at a steep discount. Taxpayers can also find tax coupons online by using searching the web using the keyword phrase “tax coupons”.

Another option is to contact the IRS. The IRS provides a free income tax preparation program for individuals earning less than $49,000 who cannot prepare their own federal income tax returns. The IRS Volunteer Income Tax Assistance (VITA) will help taxpayers prepare their income tax and help answer tax questions about special credits, such as Earned Income Tax Credit, Child Tax Credit, and Credit for the Disabled. The program offers free electronic tax filing (e-filing) at most of it’s sites. For more information on TCE, call 1-800-829-1040 or log onto www.irs.gov

Individuals who have tax problems or complicated tax situations should contact an income tax lawyer or tax consultant immediately. Tax lawyers can answer your income tax questions and act as your tax representative to the IRS. If you have serious tax problems, the price for a consultation with a tax attorney is worth it.

If you will not meet the tax deadline, you can file for a tax extension. Taxpayers have 3 choices for filing the income tax extension form (Form 4868, Application For Automatic Extension of Time To File U.S. Individual Tax Return); electronically, by paying part of your tax due with a credit card through an outside service provider listed on the form, or by mail.

If you file your Form 4868 electronically you will receive an acknowledgment or confirmation number and you do not need to mail in Form 4868. If you need to pay additional taxes, you may do so through the outside service provider or through e-file. Be advised that each tax service provider will charge a convenience fee based on the amount of the tax payment.

These are the most common options available for filing your tax return. For more information about income tax or filing an income tax extension visit the IRS website.

source: irs.gov