With the April 15, 2009 tax deadline fast approaching, tax preparation is fully underway. We invited Timothy Shortsleeve, an esteemed CPA, to provide some tips and tricks to make your filing easier to navigate through. Here are some things to consider:

1.    Organization is EVERYTHING! – Organization is the key to successful and accurate tax preparation. Be sure to review and organize all of your documents, and then use a scanner, like the Fujitsu ScanSnap, to store your documents digitally.

2.    How should you file? – Single? Head of House Hold? Joint? There are many things to consider. So, give yourself time to weigh them all and find the option that best suits your needs. Check out Publication 17 on www.irs.gov.

3.    e-file! – When you file electronically, the computer will handle the math, and you will get your refund in about half the time it takes when you file a paper return. If you owe, electronic filing and paying eliminates the need to submit an associated payment voucher such as Form 1040-V

4.    Use Direct Deposit - If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than waiting for a check by mail

5.    Alternative Minimum Tax (AMT) – The exemption used in calculating 2008 liability for the AMT was increased to $69,950 for joint filers and surviving spouses, $46,200 for single individuals, and $34,975 for married persons filing separate returns.

6.    New Homebuyer Credit – A first-time homebuyer credit of $7,500 is available. The credit can be claimed for homes purchased after April 9, 2008 and before July 1, 2009. Taxpayers must file Form 1040 and Form 5405 to claim the credit. Be aware: This credit is more like an interest-free loan from Uncle Sam. It will be repaid over 15 years. The repayment starts two years after the year the credit is claimed. Thus, if you claim a $7,500 tax credit for a purchase in 2008, you will have to pay an extra $500 of income tax in 2010 and in later years.  To learn more, visit: www.irs.gov.

7.    Standard Mileage Rates Adjusted for 2008 – The standard mileage rates for business use of a vehicle is 50.5 cents per mile from Jan. 1 to June 30, 2008 and 58.5 cents per mile driven during the rest of 2008.

8.    Pay Taxes by Credit or Debit Card – It’s convenient – taxpayers can e-file or paper- file and make a payment by credit or debit card. Payments can be made by phone, Internet or when e-filing.  Search e-pay service on www.irs.gov for more information.

9.    Recovery Rebate Credit – According to www.irs.gov, individuals who did not receive a “full” economic stimulus payment may be eligible for a recovery rebate credit. The recovery rebate credit is based on a taxpayer’s 2008 tax situation. 2008 Forms 1040, 1040-A and 1040-EZ include a line for the recovery rebate credit as well as a worksheet.

10. Tax deduction on property taxes for non-itemizers – Taxpayers who don’t itemize their deductions can, in 2008 and 2009, take a deduction for property taxes paid.  This would give them an even larger standard deduction. Joint filers can deduct up to $1,000 of property taxes that were paid in 2008.  Singles can deduct up to $500 of real estate tax payments made during the year.  www.irs.gov

I hope these tips help your filing this year. Happy Taxes!

Timothy S. Shortsleeve, CPA.CITP
Partner
Bonn, Shortsleeve & Ray, LLP
www.bsrllp.com