ShareThisIt's the dreaded countdown: Tax Day is a week from Wednesday.
If your kitchen table is still cluttered with W-2s or maybe you're only just thinking about dragging out the paperwork, it's time to face it.
The April 15 tax-filing deadline is fast approaching. You can't duck it, but you can make the annual rite as pain-free as possible. This year, a number of new tax credits have many people sharpening their pencils or poring over their online tax guides. Plus the prospect of getting back the average $3,500 combined state/federal tax refund is motivation enough to get filing.
As of March 20, about 77.6 million Americans have done just that, filing their returns. Of those, 66.8 million have received a refund.
If you're getting ready to grind out your tax return, here are some tips:
Do it online
Whether it's a state or federal return, taxpayers are urged to file online, both to reduce errors and speed up refunds.
"It's fast, accurate, safe and easy," said IRS spokesman John Stout in Portland, Ore.
And in many cases, it's free. Those with incomes of $56,000 or less -- an estimated 98 million Americans -- can get free step-by-step tax preparation and filing through the IRS' "Free File" program, which is offered by nearly 20 software companies at www.irs.gov.
If you know how to file your own taxes, use the IRS "Fillable Forms" and do it yourself.
If you e-file rather than submit a paper return, your federal tax refund can be issued in two weeks or less.
Check it twice
Whether it's filed on paper or online, double-check to be sure you've provided the correct Social Security numbers, spelling of dependents' last names and proper filing status (ie. head of household). And especially if you're filing a paper return, check your math. Any errors will delay processing of your return.
Forgot to sign?
An unsigned tax return is like an unsigned check -- it's invalid, according to the IRS.
Beware of tax scams
Tax season brings out fraudsters, who go "phishing" via bogus Web sites and e-mails for unsuspecting taxpayers who might unwittingly hand over their personal financial information.
"The IRS will not initially contact anyone by e-mail and never requests any personal information over the phone," said IRS spokesman Stout. If someone calls or e-mails you purporting to be from the IRS, hang up or hit delete. If the IRS wants to get in touch, it'll be by letter.
If you receive what appears to be a phony IRS e-mail, forward it to: phishing(at)irs.gov.
Get Ponzi-scam relief
Amid the recent rash of Ponzi-type investment frauds, both state and federal tax officials are reminding taxpayers that some relief is possible through "theft-loss" tax deductions.
Victims of Ponzi investment fraud can claim 95 percent of their unrecovered losses (75 percent if victims are pursuing legal action), minus any insurance or other financial recovery. Excess amounts can be carried over to future tax years.
Can't pay?
Lots of people are having a tough time this year.
If you're undergoing severe economic hardship, contact a taxpayer advocate at the IRS.
Reach Claudia Buck at cbuck(at)sacbee.com
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