Welcome to Our Tax Tips Newsletter:

Continuing our effort to provide you with valuable, practical tax information, we will periodically update this page with useful income tax tips and income tax advice from the best sources — information on issues that you commonly deal with. Be sure to check our newsletter from time to time to stay on top of the latest and most effective tax strategies.

CompleteTax will provide income tax tips that will help you save money when it's time to file your tax returns. It's a good idea to use a well planned strategy so that you aren't surprised in April. Using CompleteTax Income Tax Preparation Software and keeping good records could mean the difference between paying a large chunk of money in April and receiving a big refund check. Use our income tax tips as part of your ongoing preparation.

Easy Access to Tax Information

The IRS sends out dozens of tax preparation pointers during tax season. We've gathered the best of these tips and condensed them to save you time and money. For example, you'll find information on how to e-file your return—a guaranteed route to a more accurate return and a quicker refund.

Also highlighted in this article are some of the more common, and easily avoidable, errors. Let's face it; no one wants to call attention to their income tax return by making a foolish blunder. Among those items that often cause trouble: picking the wrong filing status, claiming ineligible dependents, failing to check for alternative minimum tax (AMT) liability, and failing to report taxable income.

For more tips, including the value of the "eleventh-hour" IRA contribution, read our in-depth coverage in Last Minute Tax Tips to Save You Time and Money.

Tax Tips

Choosing Your Filing Status
The IRS cautions that one of the most common tax blunders is using the wrong filing status. Read Choosing Your Filing Status and help keep the IRS happy. Read Choosing Your Filing Status.

Vehicles and Taxes
With gas prices at painfully high levels, the last mistake you want to make is overlooking deductible vehicle expenses. Whether you use the standard mileage rate or squeeze every penny out of the actual mileage rate, you'll find suggestions for maximizing your expense deduction in Vehicles and Taxes.

Interest Income
How interest is treated depends not only upon whether it is taxable or non-taxable, but also upon the total amount received. Because interest payments are reported to the government via Form 1099-INT, it is important to make sure those amounts were reported accurately. Learn more at Interest Income.

Estimated Tax Payments
The refrain of "April is the cruelest month" is especially strong for those who must pay estimated tax. In a cruel twist of tax timing, the first estimated tax payment for the 2012 tax year is due on the same day as your 2011 tax return. To find out whether you need to worry about this double-whammy and, if you do, how to accurately determine your estimated tax bill (the penalties for underpayment mount up quickly), read Estimated Tax Payments.

Tax News

Child's Unearned Income Can Trigger 'Kiddie Tax'
If your child has more than $1,900 in unearned income—such as income from interest or dividends—then you may have to reckon with the "kiddie tax." These provisions require that you calculate the tax due on your child's unearned income at your income tax rate, not your child's (presumably) lower tax rate. And, full-time students who are under age 24 can be considered "kiddies" for tax purposes. Child's Unearned Income Can Trigger 'Kiddie Tax'

Employees May Be Able to Deduct Unreimbursed Business Expenses
If you are an employee, you may still be able to claim business expenses deductions. Granted, there are stringent limitations, but it never hurts to explore your options—especially if you are going to itemize your deductions anyway. Employees May Be Able to Deduct Unreimbursed Business Expenses

Installment Payment Rules Expanded to Aid More Taxpayers
If you can't pay your tax bill in full when you file your return, don't panic. Instead, investigate whether an installment payment plan is the right strategy for you. The IRS has recently expanded their streamlined installment agreement program to make it available to more taxpayers. Installment Payment Rules Expanded to Aid More Taxpayers

Failure-to-File Penalty Relief Available To Help Weather Economic Downturn
The IRS recently took action to provide limited relief from the failure-to-pay penalty for those who have been out of work or suffered a business downturn. If you can't pay your taxes in full on the due date and you meet certain requirements, you can apply a six-month suspension of the failure-to-pay penalty. Failure-to-File Penalty Relief Available To Help Weather Economic Downturn

Past Tax Tips Newsletters

Each month, CompleteTax sends out the informational Tax Tips Newsletter.
Read past Tax Tips Newsletters.