This is the time of year when we get a lot of questions from people about how long they should keep their tax returns and records. Most people hold on to these documents forever, unnecessarily accumulating boxes of papers. Although they think they're being cautious, in reality this is a security risk, as these records obviously contain lots of personal and financial information.
The IRS has some very specific guidelines when it comes to saving these important documents. We hope this will help you decide what should be kept and what you can dispose of safely. Remember these papers contain important personal and financial data so we would always recommend that you dispose of these documents in a safe and cautious manner in order to avoid anyone gaining access to this information.
They say only two things are certain: death and taxes. Add procrastination to the list. Even though everyone knows the deadline for filing federal individual income tax returns is April 17, many people still wait until the last minute to do anything about it. According to the Internal Revenue Service, 20 to 25 percent of all Americans wait until the last two weeks before the deadline to prepare their returns. At that late date, there are only two things you can do: File your taxes pronto, or request an extension.
Not that there's anything inherently wrong with waiting. If you owe taxes, you might want to earn interest on your money right up until the minute before it departs your bank account. Maybe you've been too busy with your business to keep track of the time. Or maybe you just plain forgot. Whatever the reason, to avoid scrambling at the last minute, experts recommend preparing in advance by keeping yourself organized year-round with all-important documents - including receipts - maintained in one place.
Each year, Americans make changes in their lives that impact their taxes. Whether you started a new job, sent a kid off to college, or made home improvements, there are tax breaks available that could help put a few extra dollars in your pocket this tax season.
Before you file, check out these money-saving tax moves that will help maximize your refund:
Did you change jobs or start your own business in 2011? With an average unemployment rate of 8.9 percent, millions of Americans were hunting for a new job in 2011. If you were one of them, your job search, moving expenses, and home-office expenses might be tax deductible.
