Tax return preparation is never an easy job. Most people have folders with tons of random receipts and other papers stuffed into them that are to be used with your taxes. Tax return preparation includes having organization skills and managing your finances. Each year you need to file your medical expenses, business expenses, charitable donations, income, and other tax information into a file. You need to create a filing system that you will use.

There are software programs available to help you sort all of your tax return information. Quicken is a great program for anyone who needs to organize their finances for tax return preparation. Quicken even talks to Turbo Tax (a tax software program) and exports all your information to it. Quicken will send over anything that should be included in your deductions and income.

One of the best things you can do for taxes is to file early. If you wait to file your taxes until the deadline, (April 14) you will be waiting longer for a tax refund. Studies have also shown that individuals are more likely to make mistakes if they wait to file their tax returns on the deadline. No matter what, if you owe money, you will need to submit your payment on April 15th, even if you filed for an extension.

Some people's taxes are easy because it only requires them to fill out a standard 1099 and file their W2. Some people's tax preparation is difficult as they have mortgages, student loans, investments, medical deductions, charitable donations, and other things that need to be filed. If your tax preparation is complex, consider hiring a tax accountant. It is easier to pay someone now to do the job right that it would be to pay fees to the IRS for improper tax returns.

During your tax preparation, refer to the web site set up for the IRS. The IRS has included several documents that can help you get organized for your taxes and they even offer free tax assistance. There are numerous publications that can help you understand your taxable income and if you are still confused, you can contact the IRS's 24-hour help line.

Since the tax laws are constantly being updated, it may be difficult for you to keep up with the information the IRS needs. Even though the laws are always changing, the information you gather remains the same.

 Here is a check list of things you need in your tax return preparation: 

• Your social security number, your spouse's social security number, and your children's social security numbers. 
• W-2s for the year. You will need your W-2s and your spouse's W-2s.  
• Any income from a trust or partnership. 
• Pensions, annuities, Social Security railroad retirement benefits, alimony, jury duty pay, gambling or lottery winnings, awards or prizes, scholarships or fellowships, State or local income-tax refunds. 
• Your residential address and the mortgage interest from Form 1098.  
• If you sold your home, you need a Form 1099-S. 
• If you have a second mortgage you will need a Form 1098. 
• Any real estate taxes paid need to be collected, rent payments, and moving expenses need to be gathered. 
• Your bank will provide you with a Form 1099-INT and Form 1099-OID for any account that accrues interest.  
• You must provide Form 1099-DIV for dividend-income statements. 
• If you collected unemployment, you will need a Form 1099G. 
• If you did freelance work or contract work, you need a Form 1099-MISC. 
• If you are retired and receiving money from your retirement account, you will need a Form 1099-R. 
• A car that is used for business needs to be reported for the value of the car. 
• If you are paying on a Student loan, you need to deduct the interest paid, this amount will come on a Form 1098-E. 
• Early withdrawal penalties from CDs or time deposits need to be recorded.  
• Any donation to charity needs to be recorded. TurboTax and other tax software has a program that helps you determine how much money some of your donation is worth if you donated clothing. 
• Driving expenses for volunteer work. 
• Expenses related to your job that were not reimbursed by your employer. 
• Travel expenses, uniforms, union dues, and investment expenses need to be reported. 
• Expenses to find a job are also deductible. 
• Education expenses 
• Child-care expenses 
• Health savings account 
• Adoption expenses 
• Alimony 
• Sales-tax expenses 
• Tax return preparation fees 

As you can see there are several documents you need to be in charge of and have ready when it comes time to file your taxes. You can purchase TurboTax or other tax preparation software to help you file your taxes. Most tax software will walk you through the entire process step-by-step and will provide an "error check" to make sure you haven't entered anything incorrectly.

 If you choose to prepare your taxes by hand, you will be spending more time getting the appropriate forms and reading through the instructions. Many people use one of the Form 1040's. There are several Form 1040's that are for different tax filing needs. There is the Form 1040EZ, 1040A, and the standard 1040. To understand which tax form you need, you need to learn about the differences between each one.  

The Form 1040EZ

This is the shortest tax form and is designed for anyone whose income is under $100,000. Your filing status must be single or married filing jointly, you and your spouse must be under age 65, you are only claiming the standard deduction, and many other specifications. If you aren't sure if this is the right form, you can fill out a regular Form 1040.

The Form 1040A

This is called the "short form". This 1040 allows you to claim the most common adjustments to income. Similar to the 1040EZ, you must have an income under $100,000. There is not an age stipulation on this form and you can claim numerous tax credits. If you are doing itemized deductions, you must use the regular Form 1040.

The Form 1040

This is the standard tax form, and it commonly called "the long form". Any taxpayer is eligible to use this form as long. Individuals who have home businesses or small businesses typically use this form. This form includes information about S-corporations, partnerships, and trusts.

Do not forget to sign and mail your return if you aren't using e-file. The IRS has a free e-file system for anyone who would like to avoid mailing their tax return. If you choose to e-file, you could expect to get your tax return back within a couple of weeks versus a couple of months. Before you begin preparing your taxes with a tax software program, you need to check for updates. There are new forms that are released after the software is released so you need to make sure you have the most current tax forms.

TurboTax is one of the easiest tax preparation software programs on the market. With Turbo Tax, you will get easy-to-understand questions with "guides" for more details. You don't have to worry about being confused by all the different jargon that comes with tax laws. If you have simple taxes (taxes that require a 1040EZ), you can use the software for free. TurboTax is relatively inexpensive for everyone else, costing $49-$99. TurboTax will check your returns for errors and will inform you if there are errors and what you need to do to fix them. You can pay a little extra to have an accountant check your tax return before you file it. Using TurboTax, you can e-file your returns and expect payment within 14-21 days (if you are eligible for a tax refund). TurboTax makes doing taxes simple.

If you choose to hire a tax professional to prepare your return, you have the option of e-filing or mailing your return. If you have to pay on your tax return, you will also need to pay the tax professional for preparing your taxes. Check with the tax preparer if they offer audit protection. You can find a tax professional by using the IRS's tax professional locator on their web site. Each year, more than 57 million tax returns are e-filed by tax professionals. A tax professional is thoroughly trained in tax law and should be the person who checks your return for any errors to make sure you don't get audited.

Before you e-file your taxes, check the IRS web site to see if you are eligible for their free e-file service. If you meet their requirements, you will not need to pay the fee to file your taxes. When you e-file your return, your chances of receiving your tax refund faster increase dramatically. Most people have their money within 14-21 business days. If you have to pay taxes, you can do so with a credit card over the internet and print your receipt for next year's taxes.