Tax Time Tips

Only 27 days until your taxes must be filed. Surprisingly, over a third of all taxpayers wait until April to submit their tax returns. If you are one of these late bloomers, here are some helpful hints:

• Get some help- consider hiring a professional this year to prepare your taxes. Whether its your local H&R Block branch, certified tax professional or the plethora of software help (TurboTax, TaxBrain, Tax Cut). If you do hire a local tax preparer, get references from family and friends and double check those references with the Better Business Bureau. HELPFUL HINT: If possible, file an extension on your tax return and go see your tax professional in May, after the rush. You may get better service and a reduced fee.
• Phone error in your favor- thanks to the phone companies screwing up the collection of taxes last year, EVERYBODY (even if you don't have a phone) is entitled to a $30 refund (if you claim one exemption) and $10 for each additional exemption (up to $60).
• Reduce your taxes by reducing your waistline- If your doctor prescribed that you join a weight loss program (Weight Watchers,Jenny Craig, etc.) you can deduct the cost of membership in that program and/or your gym membership. But note that is only if your doctor says that you must do it because you need to control your weight in order to treat heart disease, hypertension or another ailment (including obesity). You'll need to have a statement from your doctor to show to the IRS in case of an audit.
• Don't spend your refund, SAVE IT- Did you know the average refund is over $2,500. Instead of wasting this money, save it---automatically. Starting this year, the IRS will allow you to deposit your refund in up to three different accounts, including your IRA account! All you need is your account and routing number (call your broker or mutual fund if you don't have this info).

With these tips, I hope you will stop procrastinating and get your taxes filed. Stay tuned because in the next couple of weeks, I am going to show you how to organize your information so next year's taxes will be a breeze. Until then, take care.