Young or old, here are some tips to get the most out of your taxes

Second of two parts

About 140 million tax returns, including 6 million from Illinois, are expected to arrive at the IRS this tax season, said IRS spokeswoman Sue Hales.

Your filing likely will be among them if you're aiming for the traditional April 15 deadline after collecting the necessary W2s from your job and other tax-related documents from banks, brokerages and other sources.

If you're ready, here are some things to consider to put a few more dollars back into your pocket, experts said.

Have the IRS pay for your IRA or 401(k) contribution, said William E. Dever Jr., principal with Oak Brook-based JMG Financial Group Ltd.

"Young singles often do not feel like they can afford to save for retirement, but the importance of beginning this habit early is immense," said Dever.

Other tips include:

•If you make eligible contributions to an employer-sponsored retirement plan or to an IRA, you may be able to take a tax credit. The Retirement Savings Contributions Credit is available for Individuals with incomes up to $25,000 and married couples, filing jointly with incomes up to $50,000 You may be able to take the credit of up to $1,000 (up to $2,000 if filing jointly).

•If you work from home, consider the home office deduction. You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively as your principal place of business for any trade or business. Expenses may include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting and repairs.

For senior citizens:

•Make sure you are making catch-up contributions to your 401(k) plan or IRA. If you are 50 or older, you are allowed to contribute additional amounts to your 401(k) plan or IRA over and above the normal limit on contributions. For 2009 the normal 401(k) limit is $16,500, but an additional catch-up contribution of $5,500 is allowed that brings the total to $22,000.

•Your Required Minimum Distribution is suspended for 2009. Due to the current financial crisis, the government has suspended the normal requirement that those age 70 1/2 or greater make withdrawals from their IRAs.

•Additional standard deduction for seniors. If you do not itemize your deductions, you may be able to get a higher standard deduction amount if you and/or you and your spouse are 65 years or older.

•Credit for the elderly or the disabled. This credit is based on your age, filing status and income (if you and/or your spouse is age 65 or older; or under age 65 and are permanently and totally disabled).

•Free tax return assistance is available for seniors and those with incomes under $42,000 at Volunteer Income Tax Assistance sites and Tax Counseling for the Elderly locations statewide. To find one closest to you, call the IRS at 800-829-1040 or call AARP for the closest AARP Tax-Aide site at 888-227-7669.

For any age group:

•The Recovery Rebate Credit is figured like last year's economic stimulus payment except that the Recovery Rebate Credit is based on 2008 income and information instead of 2007. You may qualify for this credit if you did not get the stimulus payment or did not get the maximum amount (and your financial situation changed in 2008), you could have been claimed as a dependent in 2007 but not in 2008, had a change in income level or had/adopted a child in 2008, said IRS spokeswoman Sue Hales.

•Additional standard deduction for real estate taxes. If you paid real estate taxes in 2008 and take the standard deduction you may be eligible for an additional standard deduction of up to $500 for single filers and $1,000 for married couples filing jointly, said Hales.

•Taxpayers may be able exclude up to $2 million of debt forgiven on their principal residence. This applies to debt forgiven in 2007, 2008 and 2009. Debt reduced through mortgage restructuring as well as mortgage debt forgiven in connection with a foreclosure qualifies for this relief.

•If your average gross income in 2008 was $56,000 or less, you can prepare and e-file your tax return for free through the IRS Free File program. You must access Free File at www.irs.gov. Free File is also available in Spanish, said Hales.