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Monday, January 26, 2009

Some Tax Advice and Important Information

I just E-filed my federal tax return. I'll explain why I went ahead and did my tax return instead of waiting until March or April like I stated in my previous post in a second. First let me share a very important piece of advice to take heed of when filling out your tax return:

Never rely on information from documents such as your last pay stub or last bank statement of the year to complete your tax return. Wait for your employers, past and present, to send your W-2s and for the banks to mail out your interest statement.

I used the last pay stubs of my two past employers and present employer and also used my last bank statement from each savings account to estimate my 2008 tax refund. And because I e-file, I really didn't need to wait to receive my hardcopy W-2s through the mail. Everything is done electronically. But being me, I waited to receive ALL my OFFICIAL documents and do yall want to guess how far off my original $1335 tax refund estimate was??

$872 off!!

Now I would never have sent off my tax return using estimates but still. The huge difference blew me away. Just shows you how much "minor" mistakes can cost you.

Anyhoo. I went ahead and filed my tax return today because of three reasons:

1. I already had all my paperwork and could file at any time.
2. I spoke to a rep at the IRS and he confirmed that I could amend my 2008 tax return to claim the 1st Time Home Buyer Tax Credit once I had closed on a house and it was before the July 1, 09 deadline.
3. The $2207 tax refund I will be receiving will be better used now towards my home purchase fund.

Based on my IRS e-File Refund Cycle Chart I should be receiving my refund via direct deposit next Friday, 2/6/09. Here are a few dates from the chart:

Transmitted & Accepted (by 11:00 am) between... Direct Deposit Sent* Paper Check Mailed*
Jan 16 and Jan 22, 2009 Jan 30, 2009 Feb 6, 2009
Jan 22 and Jan 29, 2009 Feb 6, 2009 Feb 13, 2009
Jan 29 and Feb 5, 2009 Feb 13, 2009 Feb 20, 2009
Feb 5 and Feb 12, 2009 Feb 20, 2009 Feb 27, 2009
Feb 12 and Feb 19, 2009 Feb 27, 2009 Mar 6, 2009
Feb 19 and Feb 26, 2009 Mar 6, 2009 Mar 13, 2009
Feb 26 and Mar 5, 2009 Mar 13, 2009 Mar 20, 2009


Happy tax filing yall!!



Tax Resources:

TaxAlmanac

Fairmark

IRS Free File

1 comment:

Jerry said...

Ha! Happy Tax Filing, huh? Well, we shall see. We are living overseas, so our return could lead to a decent amount this year... although there's never any real insurance on that. I think you were wise to file early, since you can amend later if you need to.
Jerry
www.leads4insurance.com