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Ah, April, that magical month when the chill of winter's grip loosens to give rise to sunshine, fluffy clouds, and… wait, what? APRIL?! Oh snap--you gotta do your taxes.

Now I know you want to get them done and out the door. Totally understandable, but keep in mind that doing things the right way is better than getting them done quickly. Your tax returns are no exception. Here are a few things you should keep in mind when sending Uncle Sam your yearly income report:

If your income changes, you better be able to prove why:

  • According to bargaineering.com, a large discrepency between yearly incomes is a surefire way to get audited. To avoid having to spend any more time than you need to explaining why you're so dreadfully poor (like me), ridiculously rich (like this guy), or somewhere in between, just document what you earn. It's obvious advice that applies regardless of what happens during the year, but it's especially l when your financial situation changes drastically.

If you claim you work from home, be diligent (and make sure that you actually do):

  • Again, it seems like a "no-duh" moment. But if you work from home, BusinessWeek suggests a few tips to keep you audit-free, such as avoiding rounding off your figures (so you don't come across as "guesstimating" your expenses), incorporating your business (as corporations are 10 times less likely to get audited than sole proprietorships), and making sure you're only deducting expenses that really are business-related.

Get it done on time:

  • Apparently, there's more to worry about than having to pay interest and having the IRS place a levy on your wages if you file your taxes late: you might actually be at greater risk for an audit. If for whatever reason you just can't… seem… to move fast enough… to get your taxes done by April 15, there is hope. You can file a Form 4868, the Application for Automatic Extension for Time to File U.S. Individual Income Tax Return. With such a hip name, you just know it's got to be awesome, but it's not. If you get it in by the 17th, it will give you an automatic four-month extension period to file your return. What it won't do is get you off the hook if you owe taxes--you still have to pay those immediately. We can't quite figure out what the point of this form is, as you'd have to do all the paperwork in order to figure out what you owe. Maybe you can tell us.

Today's the 5th, which means even if you haven't given your taxes a single thought since last year, you still have 10 days to get them done. If you need help, search for AARP Tax-Aide locations in your area, as they can help you file both state and federal taxes free of charge if you're below a certain income level. You can also search "e-file" at irs.gov, and check out "First-Time Taxes: The rookie's guide to filing" here at brassmagazine.com. Happy taxes!

--Brandon 

 

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