Snowed in? Start working on your taxes
Chicago – If you find yourself snowed-in, or it's just too cold and miserable to be outside, make good use of your time indoors and start working on your 2010 tax return. The Illinois CPA Society says you'll be glad you did when it's a beautiful day in early April, and offers these ideas to help you out:
• Get organized. Start by pulling together all your paperwork -- items like your 2009 return, W2 forms, interest income statements, documentation for charitable donations, and if you itemize deductions, receipts sorted by type and date.
• Review documents, correct as needed. Don't assume important items like 1099 forms or W2s are correct -- check your address, your Social Security Number and other details. These forms should have been mailed to you by January 31st, so follow up if any are missing or incorrect. However, investment houses have until February 15th to provide 1099s.
• Look for possible deductions and credits. The IRS website www.irs.gov is a great resource for details on current tax credits and deductions. IRS Publication 17 summarizes 2010 changes and offers guidance on which forms to use and how to file. There's even a section on “The ‘What ifs' of an Economic Downturn” that addresses situations like job loss and foreclosure.
• Double-check your work. Once you start preparing your return, don't make obvious mistakes or forget to include anything. Check your math; double-check your Social Security Number, your spouse's Social Security Number, your income and any other numbers or details. If you were married or divorced during the year, don't forget to indicate a status change. Make sure you understand how your tax preparation software works; don't gloss over question prompts or you may lose some nice deductions if you don't read about them.
If you find yourself a little overwhelmed by tax preparation, or it's been a tough or financially complicated year, it might be time for a little professional help. Find a CPA (and more tax tips) on the Illinois CPA Society site – www.icpas.org. The home page has a link to an easy-to-use online “Find a CPA” feature on which you can do a simple search through a directory of member CPAs in your area. The section also includes information on choosing and using a CPA.
About the Illinois CPA Society
The Illinois CPA Society, founded in 1903, is the fifth largest state CPA Society in the nation, with more than 24,000 members. It is the premier professional organization that represents CPAs in Illinois. During its over 100 years of existence, the Society has advanced the highest ethical and financial standards of the profession, and has been a leader in educating the public on financial issues.