Tax Prep '08

Posted February 11th, 2008 by NFAN
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It’s always a good idea to file early instead of waiting until the last minute. But even if you’re not ready to file, now is a great time to make sure you’re prepared: Do you have the documents you need? Do you know where to turn when you have questions? Are you eligible for tax credits?

Get your “ducks in a row” now and everything can go a lot smoother when you sit down to file.

Haven’t Received Your W-2?

You should receive a W-2 from each of your employers from 2007. Employers have until January 31st to send you your 2007 W-2, so if you haven’t seen it by now, you may want to speak with your supervisor to find out if it was sent and when. If they did send it, verify that they have the correct address.

After a few days, if you still have not received your W-2, contact the IRS at 1-800-829-1040. When you speak with them, provide your and your employer’s name and address as well as estimates on your earning, taxes withheld and time period you worked. You can find this information on your final 2007 pay stub.

If you misplaced your W-2, you can request another from your employer, but beware that your employer could charge you a fee for providing you another form.

You are still required to file you tax return even if you don’t get your W-2. In this case, use Form 4852, estimate the information as accurately as possible, and attach this form to your return. Later, you may be required to amend your return if you eventually receive your W-2 and the information is different. Find these and other forms on the IRS website at www.IRS.gov or by calling 1-800-TAX-FORM (829-3676).

Haven’t received your 1099?

Another vital form for many taxpayers is the 1099. If you are a contractor or freelancer you may be required to file a 1099. Like the W-2, this form should be mailed by January 31st by the person or company that paid that income.

If you are expecting this form and have not received it by February 15th, call the payer to find out if, when and where it was sent. If you still don’t receive the form several days after that, contact the IRS at 1-800-829-1040.

Eligible for the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit is a tax credit for low income workers that can be worth up to $4,700. Although many non-eligible taxpayers mistakenly claimed the tax credit in the past, 20 to 23 percent of eligible taxpayers have not claimed it, according to the IRS.

If you think you may be eligible for the EITC, use the EITC Assistant on the IRS website at www.IRS.gov. Answer a series of questions about your family, wages and living situation and the tool will tell you whether or not you qualify. Give yourself about 15 minutes to answer the questions. It helps to have your W-2, 1099 or earning statement on hand.

You may be eligible if you earned less than:

  • $12,590 (or $14,590 if married filing jointly) and did not have qualifying children
  • $33,241 (or $35,241 if married filing jointly) and have one qualifying child, or
  • $37,783 (or $39,783 if married filing jointly) and have more than one qualifying child.

Furthermore, you must have earned income for at least part of the 2007 tax year, have a Social Security Number, be filing jointly if married, be a US citizen, year-round resident alien or nonresident alien married to a citizen or resident alien.

Last year, 22.4 million taxpayers received $43.7 billion in Earned Income Tax Credits. Finding out if your eligible may take a little time and effort, but it might be worth it!

Learn more here: http://www.irs.gov/individuals/article/0,,id=96406,00.html.

How Do I Access IRS Forms?

The IRS provides several different ways to access any tax form you may need.

  • Go online to access forms and publications at www.IRS.gov.
  • Call 1-800-TAX-FORM (829-3676) to order forms, which should arrive within 10 days.
  • Ask you local library, post office, or even large grocery store or copy center for free tax forms, which many locations provide during the tax season.
  • Mail an order for the tax forms you need to:

    National Distribution Center
    PO Box 8903
    Bloomington, IL
    61702-8903