Is it tax time again? April 15th is right around the corner and whether you are single, married, employed or not it is time to prepare your tax return and file it. Want to make it a little less stressful than last year? The earlier you start the better. Avoid the last minute rush and costly mistakes. Here are a few tips for tax return preparation that will ease the burden of filing.

Tip #1 - Your records are coming, get a place prepared.

W-2's, investment statements, mortgage interest statements, student loan interest statements, tuition payment statements and education trust statements (if you or one of your dependants is a student) and a whole slue of tax records will start trickling into your mailbox in late December and throughout January. Make sure you have a place to put all of them so nothing gets misplaced, thrown away, or lost. It could be a file, a basket, a specific spot on a shelf or desk, or in an envelope. Make things easier and have a place designated to put everything before the records start coming in. When it comes to filing, you will need all of your records on hand to make sure your information is correct. The IRS gets copies of all of your statements as well that they'll be checking against what you file, so the numbers on those documents are important to make your filing process go as smoothly as possible and have your return come quickly.

In addition to all the records coming to you, if you are self employed or are planning to itemize deductions for work related expenses, you need to gather all your records and logs for that as well. For example, many self-employed individuals deduct travel and gas expenses and have kept receipts and log books of their expenses. Talk to a tax professional to find out what you should and should not plan on deducting and gather the information needed for those. It is also important to keep those records for the future, especially if the IRS decides to audit you and see if all the claims you made for tax deductions were valid or if you owe them more money.

Tip #2 - Have Social Security numbers and/or other personal identifying information on hand.

The IRS needs to know who you, your spouse, and all of your dependants are before they can process and send you a return. Make sure you have correct social security numbers (SSN) or an Individual Tax Payer Identification Number (ITPI) when you are filing. Your social security number or ITPI is what connects you to all the documentation the IRS receives. They use your social security number or ITPI to check against any tax breaks you apply for, such as the Child Tax and Earned Income Credit. Make sure you and all your dependants have valid social security numbers. Write them down and put them with your records so you know what and where they are. Nothing holds up filing your tax return like forgetting a vital piece of information like a social security number.

Tip #3 - Find last year's rebate information.

If you got an economic stimulus check last year, it may affect your tax return this year, for the better. If you got less than the maximum, which was for most employed tax-payers $600 for singles or $1,200 for couples filing jointly, you may be able to claim the rest of it on this year's return. A couple extra hundred can make a big difference, so, track down that data and see if you qualify for more. Look for the additional line "Recover Rebate Credit" on your individual tax forms when filing, but you'll need the statements you got from the IRS with the stimulus package to find out if you can claim anything more.

Tip #4 - Dredge up last year's tax return forms.

This year's return is more often than not based on last year's forms, especially if you are filing electronically. The IRS sends out the tax packages based on your tax history, so better to be safe than sorry and have last year's forms on hand if there's any questions at all or if anything has changed. Plus, if you are ever chosen to be audited by the IRS, they want to see your tax return history, so keep those forms close.

When filing electronically, you can actually use last year's form to fill out a lot of information that hasn't changed, like your name, address, and social security number, but only if you are using the same software to file this year as you did last year. Save some time and pull up last year's form to help you fill out this year's.

Tip #5 - Do your taxes yourself or have someone prepare them for you?

This is the big question that everyone has to ask themselves before filing. If you want to file your tax return yourself, there are several options available. The first is to pick up or print the schedules and forms from the IRS website you need to fill out and mail in your tax return. This can be time consuming, but if you start early, you shouldn't have a problem finding all the forms you need.

The second and more popular method for self-prepared returns is e-filing, or electronic filing. This is the more popular of the self-prepared tax return styles because, according to the IRS, on average an e-filed return is processed and comes back in half the time of paper filed returns. There are several tax preparation software packages available from free or inexpensive to a little more pricey depending on how much support you want and how involved your taxes are. All the different software packages do basically the same thing though, and that is you fill out the forms and schedules and email or submit them online rather than through ground mail. They can be a rather nice option because most will guide you through the process and ask you questions to make sure you are taking all of your deductions. If you choose this option, be sure to sign up for an electronic pin with the IRS so you don't have to mail in the signature page after filing online. You can sign up for a pin directly from the IRS's website or while you are filing for your return.

The other option for filing your tax return is to have someone prepare it for you. This is a good option if you have had more than one employer, worked in more than one state in the tax year, are self-employed, or want all the help you can get in getting the maximum deductions for the largest return. Some people like to have the assurance that they are filing right from a professional in the field. Be sure to choose your tax preparer carefully. Tax preparers can be anyone from the locally trained preparer who is not licensed to a CPA. Choose one that is right for your budget and your needs. Just remember that if you have someone prepare your taxes for you, you are still responsible for what is on the return information.

Whatever your style for preparing your taxes may be, choose early how you want to prepare your tax return so you are prepared when all the information is gathered.

Tip #6 - Direct deposit is a gift from.

However you end up filing your tax return, make sure you choose the option to have your refund check deposited directly into your bank account. What's the big advantage, you may ask. No more checks lost in the mail, no chance it will be returned to the IRS because of a bad address and one less stress for you. Plus you will have access to your refund sooner rather than having to wait for a check to come, take it to the bank, the waiting for it to clear.

If you are going with direct deposit, though make sure to have the correct routing information on the form, as well as your bank account number.

Tip #7 - Start early, get paid early.

The earlier you are able to start on filing your return, the less stress and panic you'll feel as the April 15th deadline looms. Start early and get your tax return prepared as soon as you have all the information gathered, and you'll get your return sooner. The IRS has less to process at the beginning of the tax season than toward the end, so you'll get your rebate check sooner too. Plus when you start early, you have more time to make sure you don't make mistakes that may cost you and you have time to make sure you are getting the biggest return possible. When your taxes are done right and on time, there is no need to file for extensions, and you probably won't be subject to an IRS audit in the future. Make the smart decision and start early.