Tax Time Is Right Around The Corner

The end-of-year holiday season is followed closely by tax season. If you prepare your own taxes – or even if you don't – you'll need to start gathering your financial information in order to complete your tax return. Tax season conjures up images of filers waiting until the last minute – which falls on April 15, 2009 – to slip the all-important papers into the mailbox.

If you're looking for an opportunity to turn over a new financial leaf, getting a jump on your taxes may be just the thing you need to help get you started. You'll need to collect a lot of documentation, and if you're not a neatnik by nature, this can be one of the worst parts of doing your taxes.

Find a large box and start hunting up your pay stubs, account statements and other financial records. As you move into the new year, you'll start to receive statements in the mail that you'll need for your taxes. Look for envelopes marked "TAX INFORMATION ENCLOSED" and put those in your box.

Reporters – those who have information you need for your year-end taxes – have until January 31, 2009 to put your information in the mail. If you need W-2 statements from employers, interest income statements from the bank, or other similar documentation, you won't be able to file your taxes until this information shows up. If you're in a hurry, check online to see if you can get the figures you need ahead of the year-end paper statements.

If you're self-employed, you have all of the payment records you will need to make your year-end report. In most cases, you'll need to make an estimated payment on January 15, 2009 – unless you can get all of the information you need to file your tax return by the time the estimated payment is due. Since reporters aren't required to make year-end tax information available until January 31, you should plan to make your estimated tax payment. If you're entitled to a refund, file your year-end return as early as possible and get your money back.

Once you have your documentation collected, you can file your tax return. You can find computer programs that will help you file your taxes, and studies show that filers who use tax preparation software are more likely to get refunds faster, less likely to omit required schedules and forms, and make fewer mistakes that will delay a refund check. The tax preparation software is tax-deductible, and cuts down on the time required to prepare a return. If you use tax preparation software each year, you can import data you need from the previous year's return, reducing the preparation time even more. You can also file your state income tax return at the same time, if you live in a state that requires filing.

Most electronic software programs also enable you to file your return electronically for a fee. If you don't want to pay to file your return, you can still print off a paper copy of your return and mail it in. Print an extra copy for your own records. Once you've filed your return, keep all of your receipts and other documents together in a single file, along with a copy of your return in case you're required to answer questions about your return.