Tackling Your Taxes -- Are You Ready?

Maybe your next move after watching the Super Bowl should be tackling your taxes. With the football and holiday seasons behind us, why wait until the last minute? Rushing may contribute to mistakes and you might miss opportunities to save money. If you're getting ready to prepare your 2007 taxes, the Illinois CPA Society has some tips to help you get started:

CHICAGO, Feb. 1 /PRNewswire-USNewswire/ -- Maybe your next move after watching the Super Bowl should be tackling your taxes. With the football and holiday seasons behind us, why wait until the last minute? Rushing may contribute to mistakes and you might miss opportunities to save money. If you're getting ready to prepare your 2007 taxes, the Illinois CPA Society has some tips to help you get started:

-- Know what AMT is and how it affects you. You should be aware of Congress's last minute fix of the alternative minimum tax -- AMT. This delay caused returns having forms for education, dependent-care expenses, energy efficient products and a mortgage-interest credit to have processing delays until mid-February.

AMT is computed parallel to the regular income tax and has its own complexities. To find out if this tax directly affects you, visit http://www.irs.gov (look for Form 6251) or consult a CPA tax professional.

-- Documentation is critical. CPAs say many people underestimate their expenses. If you haven't already, start keeping a tally of everything you spend or donate; it could save you money later.

New for 2007 is the fact that all monetary contributions, regardless of the amount, must be documented with a receipt, a bank record such as a cancelled check or written acknowledgement. In the past this type of documentation was only required for amounts of $250 or more; letters are still required for amounts of $250 or more. There are also stricter guidelines for donated goods and vehicles.

-- Don't forget the obvious. Don't forget to indicate if there's been a change in your filing status. For example, if you got married last year and your married name and social security number don't match, your forms could be kicked back. IRS looks at your current social security records. If you haven't yet contacted social security to change your name, your return will be returned. Divorce or other life changing situations also have implications on how you file your tax return.

-- Consider filing electronically. Filing electronically encourages accuracy and you'll get refunds back more quickly.

-- Do your homework. There are some great resources for you. Find out what credits you can claim, what deductions you can make and other filing season facts. Visit the IRS site, http://www.irs.gov or the Illinois CPA Society site, http://www.icpas.org, where under the side bar heading of "Media/Consumers" you can find direct links to specific IRS topics, as well financial literacy resources.

About the Illinois CPA Society

The Illinois CPA Society, founded in 1903, is the fifth largest state CPA society in the nation, with approximately 23,000 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.