It’s that time of year! If you do not have all your tax documents from 2010 then you will be getting the last of them soon. The vast majority of people get a tax rebate (the average is over $2000) so the sooner you file the sooner you will be getting that money!
Remember if your tax rebate is too high then you will want to adjust your withholding this year so it is lower in 2011. That way you will get the money you earned throughout the year instead of as a lump sum at the end. You will save money on interest this way (either because you will have it to invest earlier or because you can apply it to your debts sooner).
I always file online. I use taxslayer, which costs $9.95 or $19.95 depending on which version you use. I have used them for the past 7 years and I love them!
Both Turbo Tax and H&R Block are offering a way to create an account and file your taxes for free. Just click on the link and give it a shot. If it turns out you do not like using them then you are out nothing – just don’t send it to the irs.
Another bonus to filing online is that there is usually a way to keep track of deductions all year long. That will be important for us this year since we are planning on moving – lots of deductions. I gave away a ton of items, including quite a few maternity clothes (my maternity scrubs were so hard to find I was almost worried in getting rid of them – but I know I will never use them again!). Filing online is easier and you will get your rebate faster.
While we are on the topic of finance I have two quick tips for 2011.
- Give a program such as mint a shot. I have been using them for years as well and now you can even track goals using their program. It makes it easy to keep track of everything (they will even chart your credit card and checking account savings if you want). It is completely free.
- Second, make it a goal to learn a little more about finance this year. It can be as easy as signing up for the Daily Worth newsletter (if you are a woman – that newsletter is on finance for women). Learn a little bit everyday and next January you will be happy you did!
- 2 Myths about Earned Income Tax Credit (littlepeoplewealth.com)
- Why You Should E-File Your Taxes (money.usnews.com)
- How To File Free Tax Returns (hellobeautiful.com)