When it comes to income tax filing, there are several factors that you need to take into your careful consideration. As we know, the deadline for filing your tax return for 2011 is getting closer and if you are still working on your tax returns, you will find the following tips very useful.

Never Miss The Deadline

IRS charges hefty amount of penalties for late income tax filing. In general, you can be charged around $250 as late fine on every $1000 that you owe as taxes. You can avoid these penalties by filing your returns within the deadline, which is April 18, 2011. However, if you are going through some problems and suspect that you will not be able to meet that deadline, you can apply for filing extension and get the deadline extended to October 17, 2001.

17, 2011. As per the laws, you do not need to give any excuse or reason to apply for extension. In order to apply, all you have to do is just to visit the IRS website and submit the IRS FREE File online. There is no fee for filing for extension. But, you must keep in mind that such an extension only postpones filing; it does not save you money on your taxes.

Do Not Forget To Claim For The Earned Income Tax Credit (EITC)

When it comes to 2011 income tax filing, you can qualify for the Earned Income Tax Credit (EITC) if your household income does not exceed $48,362 while you worked any part of the year 2010. Even if you have paid nothing or very little amount of taxes to the IRS, you can be eligible for the credit refund of up to $5,666.

The unfortunate thing is that many people, even though they are eligible for this, always forget to claim for this credit. As per the recent reports issued by the Internal Revenue System, only 80% of all eligible workers claim for it. Besides claiming for the EITC refund, you are recommended to fill out Schedule M also in order to find out if you are eligible for the ‘Making Work Pay Tax Credit’ as well.

Claim For Your Past Refund Returns, If Any

The US laws for income tax filing allow you to claim tax refund for the past three years at least. It means the 3-year window for 2011 includes the years 2008, 2009 and 2010. For example, you can claim for the refund due for the tax year 2008 this year; the deadline remains the same – April 18, 2011. The IRS does not charge any penalty fee for late filing.

File Electronically

The official website of the IRS (Internal Revenue System) now allows people to file their tax returns online; in fact, you can even check your refund status online. There is no filing fee for electronic filing. There are also several help centers that are run by IRS-trained volunteers; you can contact them in case you need some help in income tax filing or tax preparations. These centers provide free help for those who are at least 60 years old and those whose household income is not more than $49000.

You can find the closest help center by giving a phone call to the IRS Site Locater number at 1-800-906-9887. You can easily save a great deal of time and avoid a lot of hassles by filing your tax forms online instead of filling out paper tax forms and submitting it manually through regular post. When you file manually, it may take several weeks to even months to get your tax refund, but if you are filing online, you can expect the refund money deposited in your bank account within just ten days.

Double Check The Identification Numbers

When it comes to income tax filing, you may be a little surprised to know that as per IRS reports, a large number of filers face a lot of tax hassles just because they fail to enter their identification numbers correctly. Such mistakes may even trigger audit for you. Besides that, it can also cause delay in receiving tax refund. Therefore, you are strongly recommended to double check the social security number you are entering in the forms.
You must mention the SSN numbers of all the individuals that are listed out there, such as dependents, your spouse, you yourself and any other individual that you have listed regarding your claims for the Earned Income Tax Credit or the Child and Dependent Care Credit. You must also avoid other common errors, such as data input mistakes that are likely if you are filing your returns online.

In order to ensure better accuracy, you may even consider using a good tax software program. If you are filing manually, you should avoid corrections or overwriting on the forms. All the details must be filled up in legible hand-writing.

Protect Yourself From Tax Scams

When it comes to income tax filing, especially through internet (e-filing), the chances of scams can also not be ignored. It is true that IRS encourages tax return filers to take advantage of their ‘e-services’, such as e-refunds, e-payments and e-filing, but there are a few things that you must keep in mind in this regard in order to protect yourself from possible scams.

For example, if you have received an email from IRS regarding your taxes, you should consider it as a huge red flag; never respond to such mails because IRS never sends such emails. Such fake emails are usually sent as part of phishing scams, where you are requested in the email to follow a link and provide your private information out there.

By clicking on the link, you are likely to land on a webpage that looks similar to the IRS website. In order to get detailed information on tax scams, you are strongly recommended to visit the official website of the IRS and check out their Dirty Dozen List of such scams. If you are filing electronically, make sure that you are filling the forms at the correct website, not a similar looking scam site.

Make Sure You Are Filling Out Correct Forms

There are different types of tax payers and there are different types of forms that they are required to fill up and submit for income tax filing. For example, the ITR-6 form is for companies; ITR-5 is for BOIs, AOPs and firms; ITR-4 is for HUFs and individuals who earn their income from a proprietary profession or business.

ITR-3 is for HUFs and individuals who are not carrying out any profession or business under proprietorship but they are partners in firms; ITR-2 is for HUFs and individuals who are not earning any income from a profession or business; and the Form ITR-1 is for all those people who are earning their income from interest, pension and salary. Make sure you fill up the right forms.

Send It To The Correct Mailing Address

If you are doing it manually and filling out your tax returns on paper, you must check the correct mailing address at the official website of the IRS. If you send it at the wrong address and if the IRS does not receive it in time, you may even be held liable for late penalties.

Do Not Forget To Sign

As per IRS reports, a large number of tax payers have to go through a lot of hassles just because they forget to sign the papers. So, make sure you have signed and dated all the documents thoroughly.

Double Check All The Figures

In order to avoid the chances of a tax audit and to ensure that you receive your tax refund fast, you must also double check all the figures thoroughly while you are working on your income tax filing. You must always refer to the tax table before entering a figure.

Be Careful While Mailing A Payment

The check you send for the tax payment must be payable to “United States Treasury”. The SSN number of the person listed first on the tax forms must also be mentioned on the check. Besides that, you are also required to mention the type of form you are filing (ITR-1, ITR-2, ITR-3, ITR-4, ITR-5 or ITR-6), the tax year and your daytime phone number on the check. Do not ‘attach’ the check with the tax return, instead, it should be ‘enclosed’ with the same.

Overall, there are plenty of things that need to be taken into account when it comes to income tax filing. The more informed you are, the more accurately and correctly you can fill up the forms and submit to ensure you get your tax refund in time, avoid possible tax audits and any other hassles that may be caused because of incorrect filing.

You can also save a lot of money by making sure that you have claimed for all types of deductions and credit that you are eligible for. Whether you are filing your return manually or electronically, you are strongly recommended to Double check all the details that you are providing with the forms before you submit it.