12/22/2008 10:34 AM

Start getting ready for tax time

By: News 14 Carolina Web Staff

Start getting ready for tax time
GREENSBORO -- IRS officials say now is a good time to start getting things in order to file your taxes. Here are a few tips they suggest:

•Get your records in order and make sure you can get your hands on tax documents like home sale, stock transactions and rental properties.

•Estimate your 2008 tax bill. The IRS withholding calculator is a tool that can help you avoid surprises about what you owe come tax time.

•Consider the first-time homebuyer’s credit – this is available to eligible taxpayers who’ve bought a home after April 8, 2008.

•Get your rebate recovery credit. The IRS says this could apply to people who didn’t receive a stimulus check this year, and parents of children born in 2008.

•If you received any unemployment compensation, that money is taxable. There are some federal withholdings you should learn about before filing.

•If you are facing foreclosure, learn about the mortgage forgiveness debt relief act.

•Get the most out of your retirement accounts. This year you can put as much as $5,000 in an IRA and another $15,500 in your 401k. A saver’s credit can help offset some of those contributions for low and moderate income workers.

•Get legitimate information from the IRS. Email messages claiming to be from the IRS could be phishing scams. Anyone with questions about any contact from the IRS can call 1-800-829-1040 to make sure it’s genuine.