It’s tax season again. Just a few minutes browsing IRS.gov can make an inexperienced tax payer’s head spin. Even tax veterans can get dizzy among all the available forms: W2, 1099, Schedule C – plus constant changes to tax law.Turbotax.com lists more than 30 changes in tax law effective for 2009 filings. Most notably, the $8,000 First-Time Homebuyer credit was extended and Congress added a $6,500 credit for existing homeowners.Other changes include a sales tax deduction for new vehicle purchases, adjustments in the tax brackets and an increase in the standard deduction amount. And college savings plans can be tapped – tax free – to pay for a computer or Internet access.If a personal accountant is not an option, tax preparation software like Turbo Tax or Tax Cut is low-cost software that walks users through the filing process to ensure everyone is able to access even the most obscure deduction opportunities.The program asks questions to guide users through the filing process and root out potential deductions lurking in the expense column. According to the TurboTax.com site, the software not only reflects tax law changes, it also asks questions to uncover life changes that will affect tax returns.If a living, breathing and trained tax preparer is preferred, there are several tax services in Falcon, including the newly opened Liberty Tax.Lisa Thomas, Liberty Tax office manager, said tax preparers receive training and education on tax law every year. Her service double checks the returns and guarantees accuracy and corresponds with the IRS if any problems arise, she said.Once the W2 form is received, Thomas said the next step is to visit their office, bring the W2, a picture ID and social security cards for any dependents. Last year’s tax return is also helpful, she said.Liberty Tax processors work the return, and clients leave the office knowing their full refund or liability amount, Thomas said. For impatient types, Liberty Tax also offers refund anticipation loans.If someone is self-employed or picking up side work to supplement income, Thomas said the taxes can get tricky. “It’s important to keep track of everything,” she said.Common information to keep available includes income, expenses and mileage. Liberty Tax offers a small business checklist of deductible expenses – including uniform cleaning, union dues and tax return preparations fees.Thomas said the biggest mistake self-employed people make is not paying quarterly taxes. “With an employer, they make matching contributions to FICA and Medicare. If you are self-employed, the full amount goes to you,” she said.”I can’t tell you how many people come in and are hit with a huge tax bill. That can be a rude awakening.”
