By now your 2007 tax return should be filed or you should have applied for an extension of time to file.
Now it's time to prepare for the 2008, and this can include several major situations to keep in mind as you go through the coming year.
First on the list is checking on the status of your refund. If your refund hasn't been deposited to your bank account or been mailed to you in the three to four weeks after you filed, you can check its status on the IRS Web site using the Where's My Refund application. You should allow at least 7 days from the time you file your return before checking with the IRS.
You will also want to find out how much of the stimulus rebate you might receive later this summer. The IRS has an Online Stimulus Payment Calculator. Simply type in some numbers from your completed tax return and you'll see how much of an additional rebate you'll be receiving. The IRS has also posted a schedule of when these payments will be sent out.
Now may be the time to adjusted your paycheck withholding, but be careful not to over do it and claim to many exemptions. By adjusting your withholding, you'll make sure that you have just enough money deducted from your paycheck to cover your taxes, but not too much to have a huge refund, nor too little to have a sizable balance due. You can calculate how many withholding allowances to claim using the IRS' withholding calculator, and then use those figures to fill out a new W-4 and submit it to your employer's payroll department.
You will also want to keep your finished tax returns in a safe place. You'll want to keep a copy of the return, plus any supporting documents, for at least three years. That's how long the IRS has to ask any additional questions or basically audit your return.
As I always say, "It's better to be proactive than reactive!"
Now it's time to prepare for the 2008, and this can include several major situations to keep in mind as you go through the coming year.
First on the list is checking on the status of your refund. If your refund hasn't been deposited to your bank account or been mailed to you in the three to four weeks after you filed, you can check its status on the IRS Web site using the Where's My Refund application. You should allow at least 7 days from the time you file your return before checking with the IRS.
You will also want to find out how much of the stimulus rebate you might receive later this summer. The IRS has an Online Stimulus Payment Calculator. Simply type in some numbers from your completed tax return and you'll see how much of an additional rebate you'll be receiving. The IRS has also posted a schedule of when these payments will be sent out.
Now may be the time to adjusted your paycheck withholding, but be careful not to over do it and claim to many exemptions. By adjusting your withholding, you'll make sure that you have just enough money deducted from your paycheck to cover your taxes, but not too much to have a huge refund, nor too little to have a sizable balance due. You can calculate how many withholding allowances to claim using the IRS' withholding calculator, and then use those figures to fill out a new W-4 and submit it to your employer's payroll department.
You will also want to keep your finished tax returns in a safe place. You'll want to keep a copy of the return, plus any supporting documents, for at least three years. That's how long the IRS has to ask any additional questions or basically audit your return.
As I always say, "It's better to be proactive than reactive!"
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