Year-end 2011 Tax Checklist - Make Taxes Easier

Don't wait until the last minute to start tax planning. Mid-April will be here soon enough and there are many things you can do to ensure a stress-free tax filing season.

The first thing you should do is consider any changes in your life that happened in 2011 and that might affect your taxes. Ask yourself a few questions:

Did my marital status change due to marriage or divorce?
Did my kids move out?
Did I buy or sell a home?
Did my employment situation change? Did I lose my job? Did I retire?
Did a disaster - like a hurricane, tornado or flooding - cause a hardship for me and my family?
Do I qualify for tax credits?

Here are a few more things to think about before you sit down to fill out your tax return:

Determine the amount of tax withheld
Use the IRS Withholding Calculator to determine whether you've had the correct amount of Federal income tax withheld from your pay. If you find that you need to change your withholding, give your employer a new Form W-4, Employee's Withholding Allowance Certificate, to avoid having too much or too little tax withheld from your pay. Don't be surprised come April!

Organize your records
In addition to the Forms W-2, Forms 1099 or other statements you need to support deductions or credits you claim on your tax return, you might also need bills, credit card and other receipts, invoices, mileage logs, canceled, imaged or substitute checks, proofs of payment and other records. Refer to Publication 552, Recordkeeping for Individuals, Table 1, Proof of Income and Expense, for more information.

Did you move, have a new name or address?
Use Form 8822, Change of Address Form, to notify the IRS if you changed your name, home or business mailing address or the location of your business. If this change also affects the mailing address for your children who filed income tax returns, complete and file a separate Form 8822 for each child.

Remember, a little planning now can save you a lot of frustration and surprises later.

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