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PROPERTY & INCOME TAXES -
Some Income Tax Saving Tips (continued)
13. Do not use a tax preparation service or any other source to get a “refund anticipation loan.” This is when you get your refund in advance from a service (or payday loan center), rather than waiting to receive it from the IRS or state taxing authority. These loans are at a very high interest rate with high fees, and are not a wise use of your money.
14. There are many other ways to save money on taxes with various deductions, exemptions
and credits. Too numerous to mention and, in most cases, they only apply to certain
situations. The best way to learn about most of these deductions, etc. is to read
the instructions for Form 1040. When you go through the instructions line-
Save Money By Filing Your Own Return
For the average person, filing an income tax return can be a daunting experience.
There is tons of publicity about how complicated the tax code can be, especially
from accountants and tax preparation services. For some taxpayers with considerable
financial resources, or complicated financial situations, this is true. But for
the average person who works hard at a job, perhaps owns a home, and has standard-
1. Most people do not need a “professional” to complete their tax returns. They
can easily complete all the forms required by the average return themselves, either
with or without the assistance of tax preparation software or e-
2. For the average taxpayer, most everything you need to know is included in
the instructions for filling out Federal Form 1040, or the state income tax form.
Just start at the beginning of the instructions and read. The instructions will
walk you through step-
a. Do I need to file a return and when and where do I file? These answers are at the beginning of the instructions.
b. Follow the line item instructions for each line on the form. Just start reading and fill in each line item in accordance with the instructions. They really are self explanatory for most all tax situations the average taxpayer will encounter.
c. Do I need to fill out extra forms? If extra forms are required to be completed,
the instructions for Form 1040 will let you know that and will tell you what forms
are necessary to fill out. In most cases, these forms will already be included in
the forms and instructions packet for Form 1040, that you received in the mail from
the IRS. If not, they can usually be secured at your local library or post office,
or over the Internet at IRS.gov. So, if you get to a line on Form 1040 where it
says you need to complete another form, just go to the form and form’s instructions,
follow the instructions and complete the form. When the form is completed, you will
return to Form 1040 at the line you were on when instructed to fill out the additional
form. Just continue. If by any chance you need assistance with a question, consider
calling up the IRS help line (800-
d. Continue to go through Form 1040 instructions and fill out Form 1040 until you have completed the form. At this point you will have a completed Form 1040, as well as all other forms that are required. Attach the forms you have completed in order by form number or letter, and attach any information required as noted in the instructions. Sign the Form 1040 (make sure spouse signs if joint return), follow the instructions with respect to any payments owed or refunds due, make a copy of your tax return (for your records) and send the original to the IRS.
e. Is it really that easy? Yes it is. And remember, while some tax provisions
may change from year-
3. Now that you have completed your Federal income tax filing, you can complete any state income tax filings required. In fact, many of these are quite easy because they use information from your Federal return. Just get the forms, follow the instructions and submit. After you are done, congratulate yourself on saving some money.
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