Ten tips

By HELEN HUNTLEY

© St. Petersburg Times, published February 25, 2001

Tackling your tax return

IRS rules get more complicated every year and there's nothing we can do about that. But we can offer a few tips to make preparing and filing your tax return go more smoothly. Here are some steps to simplify filing and make it more likely your return will pass IRS scrutiny:

1. Get organized. Assemble all your W-2s, 1099s, receipts and other important papers. If you find they are scattered around the house, designate a shoe box for your tax records and vow to do better next year. If you sold investments last year, you will need your purchase and dividend reinvestment records to figure out your capital gain or loss.

2. Revisit the past. Look over last year's return and take it to your tax preparer if you use one. It may alert you to missing 1099 forms or losses that can be carried over to this year's return. You also might find potential deductions you haven't thought about since you did last year's return.

3. Double-check income and withholding. Compare your final pay stub for the year with your W-2 form. Be sure your 1099 forms match your bank and brokerage records. If you find a mistake, ask the issuer to send you a new form. Don't just change the numbers on your tax return.

4. Scrutinize Social Security numbers. Make sure the names and numbers on your return match those on your family's Social Security cards. If you changed your name, notify the Social Security Administration. If a new baby arrived in your household, apply for a Social Security number.

5. Use a calculator. If you are doing your return by hand, double-check all the math. If you are rounding numbers, be consistent.

6. Write legibly. Remember that the IRS has to be able to read your return. If handwriting or math is a challenge, consider using a computer or taking your return to a tax preparer.

7. Explain yourself. If you know something on your return looks suspicious, include a note.

8. Make a copy. Keep a copy of your return for your records along with documentation of your deductions. If you forget and need a copy of your return later, the IRS will charge you $23. Save your tax records at least three years.

9. Sign and mail your return on time. Your check has to be in the mail by April 16. If you need more time to file, send in Form 4868 for an automatic four-month extension.

10. Look ahead. Adjust your withholding or estimated tax payments to match your expected tax obligation next year. -- Compiled by Helen Huntley

Sources: IRS, CCH Inc.

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