IRS 5 Tax Time Tips

It’s that time of the year again, the income tax filing season has begun and important tax documents should be arriving in the mail. Even though your return is not due until April, getting an early start will make filing easier. Here are the Internal Revenue Service’s top 5 tips that will help your tax filing process run smoother than ever this year.

1. Start gathering your records Round up any documents or forms you’ll need when filing your taxes: receipts, canceled checks and other documents that support income or deductions you’re claiming on your return.

2. Be on the lookout W-2s and 1099s will be coming soon; you’ll need these to file your tax return.

3. Consider Direct Deposit If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than waiting for a paper check.

4. Remember this number: 17 Check out IRS Publication 17, Your Federal Income Tax on the IRS website. It’s a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.

5. Don’t panic! If you run into a problem, remember the IRS is here to help. Try http://www.irs.gov or call toll-free at 800-829-1040.

Call us now for your tax appointment 515.285.5544

2011 retirement adjustments

IRS provided the TY11 cost of living adjustments for pension plans and other retirement-related programs. The limits for the most part remain the same as in TY10 or increase modestly. Of most interest to EAs are:

• The contribution limit remains $16,500 for employees participating in § 401(k), 403(b), or 457(b) plans (as well as the federal government's Thrift Savings Plan).
• The age 50-plus catch-up contribution limit under those plans remains at $5,500.
• The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are active participants in an employer-sponsored retirement plan and have modified adjusted gross incomes (AGI) between $56,000 and $66,000 (same as 2010). For married couples filing jointly, in which the spouse who makes the IRA contribution is an active participant in an employer-sponsored retirement plan, the income phase-out range is $90,000 to $110,000 (up from $89,000 to $109,000). For an IRA contributor who is not an active participant in an employer-sponsored retirement plan and is married to someone who is an active participant, the deduction is phased out if the couple's income is between $169,000 and $179,000 (up from $167,000 and $177,000).
• The AGI phase-out range for Roth IRA contributions is $169,000 to 179,000 for married couples filing jointly (up from $167,000 to $177,000 in 2010). For singles and heads of household, the income phase-out range is $107,000 to $122,000 (up from $105,000 to $120,000). For a married individual filing a separate return who is an active participant in an employer-sponsored retirement plan, the phase-out range remains $0 to $10,000.

Obtaining Copy of Return or Transcript

The IRS has a new toll-free number for requesting free transcripts - 800.908.9946. You can follow the message prompts, or complete Form 4506T, Request for Transcript of Tax Return, and mail it to the address listed in the instructions. To obtain an exact copy of a previously filed and processed tax return with attachments (including Form W-2), complete Form 4506, Request for Copy of Tax Return, and mail it to the address listed in the instructions, along with a $57 fee for each tax year requested. Copies are generally available for returns filed in the current year and previous six years.

Army Post Accounting always provides a copy of your tax return with your fees. If you need an extra copy there is an additional $20 charge (W-2's included)

515.285.5544