Everyone’s Doing It

There are 138 million taxpayers in the United States and, according to the IRS, 20 percent of them file their taxes within 7 days of April 15.  In a holiday-shortened week, that means that 27 million people had better get a move on.

And while a portion of this year’s last-minute filers will file with storefront operations like Liberty Tax Service or H&R Block, many others will self-prepare with the help of tax software from TurboTax or TaxCut.

Some Quick Tips

If you’re a member of the do-it-yourself crowd, consider taking a review of this year’s tax law changes before starting your returns.  The stimulus package signed into law this past February made a profound impact on tax liability and the list of changes may be helpful for you.

A few of the new, allowable income tax deductions for 2008 include:

• Mortgage debt forgiveness in the event of a short sale
• An additional standard deduction on real estate taxes paid
• $8,000 tax credit for homes bought since January 1, 2009

TurboTax offers 4 tax filing choices online, ranging in price from $100 to free.  If you’re among the 27 million yet to file, choose whichever program fits best — just choose it before April 15.

Filing could take several hours.  Plan accordingly.

Plan Ahead Next Year!

I’m a big believer in finding great sources of advice.  I also think you get what you pay for.  It may be too late to have a tax professional thoroughly look through your taxes for 2008, but I would encourage anyone to seek professional advice for taxes.  Not only will a CPA help you sort through your paperwork mess, but they’ll also help you avoid overlooking some frequently missed deductions.

If you need a recommendation of a professional, I’m always happy to help.

Tagged as: mortgage interest, taxes