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Taxing work
Q: How can I ace Tax Returns 101?
A. Consider tax preparation a yearly exam. The better you prepare for it, the better you’ll cope when it comes around. Learning good tax preparation habits today could save you a lifetime of headaches and make your long-term relationship with Uncle Sam a happy one. Here are some strategies to help.
1. STAY INFORMED. No matter how you much you wish them away, taxes are here to stay. So is completing and filing tax returns, which prove you actually paid your local, state and federal taxes. Check out the IRS’s Web site (www.irs.gov/individuals/students) for current tax information for students and to learn how your tax dollars work on a local, state and federal level.
2. FOCUS. Uncle Sam likes getting his full share of your earnings, and he’s set a day for you to pay up: April 15. The good news is that if you have overpaid your tax liability, a figure based on your income and other factors, Uncle Sam will reward you with a refund.
3. PREPARE. The great thing about the April 15 tax preparation deadline is that it’s not a pop quiz. You can prepare in advance. Don’t be counted among the last minute, late or never filers. Instead, make tax preparation a priority. Then do everything you need to ensure your tax returns are properly completed and on time. Try establishing a realistic deadline for you to complete the initial review of your paperwork.
4. ORGANIZE. Want a headache? Then stash your tax-related information anywhere you can find room. Messy paperwork turns tax season into one long nightmare. Well-organized materials, on the other hand, make tax preparation a breeze. You can help by getting—and staying—organized. Locate all needed documentation, including receipts, wage information and tax forms. For last year’s income, you’ll want to be able to track all information related to your financial aid, income from part-time or full-time jobs, even tips, if you’re a server.
Sure it’s a lot of work. But it’s better to go at it piecemeal now than
to hold an all-nighter on April 14. One way you can effectively handle your paper trail is to set aside a weekend to gather and organize your paperwork. While that may not be your most memorable weekend this year, it can prove to be the most beneficial.
5. ASSESS. After reviewing your organization efforts, check to make sure you have everything you’ll need to file your tax returns. Begin locating and organizing missing items. If you’re missing a W-2, ask your summer employer to send you another copy.
If you live away from home, ask family members to keep an eye out for your W-2s, bank statements and other pertinent financial documentations.
6. OBTAIN. If you filed returns last year, expect forms in the mail. Or, get forms from the IRS via the Internet (www.irs.gov). Or, pick up forms at libraries, some grocery chains or the post office. Many colleges also have tax return forms available.
7. ASK. Tax preparation is as exciting and fun as a tooth extraction. So get help from someone who can do it quickly and efficiently. Using the services of a family member or tax preparation organization can drastically reduce your stresses and any liability for late or incorrect tax preparation. Free assistance is available through the IRS. Many state organizations for certified public accountants (CPAs) also elicit help from volunteer accountants and CPAs to prepare tax returns at no cost for taxpayers who meet income criteria. If you have to pay for tax return prepar-ation, the fees will vary depend-ing on who does your return, the complexity of your tax situation and the number of years since your last filing.
8. DELEGATE. If you have someone else do your returns for you, you’ll need to hand over all your materials to that person. The sooner you do so, the better, as it will enable them to ensure timely filing of your tax return. Again, the more organized you are the easier it will be to complete and file your returns.
9. EXTEND. Sometimes the best possible defense is a good offense. For last minute and late filers, the tax season is often the most stressful time of the year. If you find yourself crunched for time, you can ask your tax preparer to request an extension from the IRS or your state. But that’s only a delay, not a reprieve. An extension provides a three-month cushion for you to continue organizing your materials, and there is no limit to how many extensions you can request. Article provided by 
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