Be prepared
Get all the items ready that you will need for your tax return. You will need your previous years tax return, the social security numbers for your immediate family. All W2 forms, 1099s(investment income statements), and any other statements related to your income, all statements related to expenses you will be claiming for and the account details for the account you want the refund to go into.
Use a tax program
This will make your life much easier as many of the items are already set up for next year or for last year if you have already done it. Many times your financial affairs will not change that much from year to year. This is a very popular way to file a tax return, every year more and more people do it this way, and at some point it will be the only way possible as it is cheaper for the government to process electronic filings. By using a tax program it will mean that you are less likely to make costly mistakes. The IRS reported that they found the error rate was 20 times less with electronic submissions compared to manual submissions. Generally a tax program will not cost much, and will end up saving you much more.
Free file if possible
This can be an option if your taxes are simple. If you don’t need to itemize and have very simple requirements you may be able to do it this way, the IRS lists some other providers who are participating in the Free File Alliance.
Maximize credits and deductions
Make sure that you are getting all the tax breaks that are coming to you, and minimize fines or penalties. Make sure to choose a tax program which helps you to identify these credits and deductions. Also look through for any newly introduced credits and deductions and see if any apply to you. Think about whether you can change your income or outgoings to be able to be claim extra credits and deductions.
One simple deduction that many miss is that you can itemize the clothes and goods that you give to charity, give them a value and get a deduction for this. Some programs will allow you to estimate this value easily.
E-file and direct deposit.
This allows you much quicker access to the refund, so you can start earning interest on it more quickly. Generally, someone who e-files can expect to get their refund deposited directly into their accounts in a few days, comparing this to weeks if you decide on the mailed check option
E-filing and direct deposit don’t cost you anything, but they can mean you have your refund faster so that it can start working for you whether that’s paying off debt, buying something you want or saving for the future, Lundberg says.
