For the Month of January 2010 --- Vol. 5, Issue 1
 
 

IN THIS ISSUE...  
     
 

Happy New Year! As we head into 2010, it's time once again to get your tax return information organized. The tax tips below can help you get through the process quickly and efficiently - and get to the real good news...a completed tax return!

Speaking of getting organized, now that the holidays are over, it's the perfect time to get your house and life in order. The 5 quick tips below can help you get organized and save money too!

Remember, your friends, family members and coworkers may find this information helpful too. So please forward this newsletter on to them or let me know if they'd like their own free subscription. And, if you need any personal assistance at this time, simply call or email.

 
 
  Tips for Preparing Your Tax Return...  
     
 

It's that time again...time to start gathering all of that dreaded documentation to send to good old Uncle Sam! And with some stats indicating the IRS audited 1 out of every 97 returns last year, it pays to be careful.

Even though this may seem like a very painful process, taking just a few simple steps right now will make your tax filing far easier and more accurate.

Keep it together. Make a quick list of all the documents or statements that were needed to complete your return last year - or call your tax planning professional for a list. Use this as a checklist to make sure you have a good start on the documents you may need this year. As you receive tax documents in the mail, grab your checklist, and mark the item as received. Then, keep all of the tax documents together in a large file or envelope marked "2009 TAXES."

Do the math. According to the IRS, the most common mistake on tax returns is bad math - from transposed numbers to downright incorrect data. And with one document leading to the other, one error can turn into multiple errors. Even if you use tax software, you're not off the hook - since they only add the info YOU put in. The point is, double-check entries carefully.

Every last cent. The IRS receives copies of your Form 1099 earnings each tax season. So, they know how much you make in interest and dividend income, and they will use that info to double-check your filing information. Make sure you collect all your earnings statements and document them on your return.

Sign on the line. It sounds almost silly, but forgetting to sign a return is actually a fairly common mistake. And the IRS won't process a return that doesn't have a signature. So, make sure you sign to avoid resubmitting your paperwork and possibly paying late-filing fees.

Remember, there isn't a lot of room for error when you're dealing with the IRS. A slight miscalculation could mean the difference between getting a return and writing a check - or worse, paying a penalty. It pays to work with a tax professional.

 
 
  Get Ready for 2010  
     
 

Now that the holidays are over and a new year has begun, now is the perfect time to make sure you are ready for 2010. Here are five things you should do this month that will make your life easier in the months ahead:

1. Clean out the clutter. You keep saying you'll do it...go ahead and do it. Spend an hour going through your old files, and shred those receipts, bills, and statements you no longer need, like old ATM receipts and utility bills, paystubs more than a year old, and receipts for things that are not deductible.

2. Get organized. While you're at it, create new files for your 2010 tax-related papers and receipts. Examples of categories include medical expenses, gift and charitable donations, and home improvements.

3. Check the gift card fine print. If you received a gift card as a present over the holidays, use them soon. Some have expiration dates, or the amount on the card may get reduced over time. In addition, in the current economy, retailers that go out of business may not honor gift cards.

4. Do a review. Review your various insurance policies - life, home, auto, etc - to make sure the coverage you have is still the best fit for your needs and situation. To save on cash out of pocket, you might even consider raising your deductible to get a lower premium.

5. Do some reflecting. Take an honest look at your schedule and responsibilities and make sure you are taking the time you need to stay healthy and feel good. Don't feel bad about actually scheduling specific blocks of time to exercise or spend special time with family and friends, to ensure it actually happens.

By following these simple steps, you'll make everything else you have to do this year easier...and more enjoyable, too! Best wishes to you and yours in 2010!