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