Educational Resources for Ages 2 - 92

They say that the only sure things in life are death and taxes. Now I don't know if the internet can help with the former, but it certainly helped me with the latter. Whether you are an EZ filer or need every Schedule from A-Z, next to your accountant, the internet is your best friend when preparing for tax time.

For several years I played Cinderella, running up the steps of the post office before the clock struck 12. This year, my taxes were done on time and that's not a fairy tale, because after spending last April 15th in a cold sweat I vowed "never again." I gave myself time to recover and in May 1996, I went to the internet.

Looking for an accountant? Use the internet to find a firm? Accountant Finder has a site where you can locate firms in your state and county. Some firms outline their services and offer information on mileage allowances, Tax Rate Schedules, and New Tax Provisions.

Whether you use your existing accountant or engage a new firm, most require that you hand them all the figures needed to "plug" into the forms (as opposed to a shoe box full of receipts and a hopeful smile).

My quest began at the I.R.S Tax Forms Site by downloading a 1040 with instruction booklet and Schedule A. An important element of tax preparation is knowing what you can deduct. The best accountants can only work with the figures you provide.

Most income items are straight forward; they are automatically sent to you (W2, 1099 Form). Apart from the mortgage company year end statement, you're on your own when it comes to determining deductions. I've used three different accountants in the past ten years. I was never asked about new activity in the tax year that might result in a new deduction.

Remember, it's your money! Before seeing your accountant, do the leg work. Record everything that the IRS legally allows for deduction.

I found something interesting while reading the forms with Adobe's Acrobat Reader, (PDF Viewer), provided free at I.R.S. Tax Forms. Under "Adjustments to Income," on Line 24 of Schedule 1040 I saw "Moving Expenses." I was going to move in one month and wondered if any of the expenses I might incur would be deductible.

Returning to the I.R.S. Tax Forms Site, I quickly located Form 3903. The form number was listed right on the 1040, so I didn't need my fairy godmother to guide me. After reading over the criteria for the deduction, I determined that I could claim my moving expenses.

On moving day, I kept an accurate log of all expenses incurred (mover's bill, mileage driven from NJ to my new residence in FL). If I hadn't known prior to the move what was deductible, I may have missed an important deduction.

Even if I'd found the moving company receipt later, I would not have recorded the mileage log or any of the miscellaneous items that were allowed. By using the internet and being informed, I was able to claim $4650.00 of my moving expense.

In our society, the word "miscellaneous" can be equated with miniscule, unimportant, not worthy of recording, and that assumption can hurt you at tax time. Most people know that on a Schedule A (Itemized Deductions), you can deduct a percentage of your medical bills, but how many of us take the time to record the medical mileage?

The I.R.S. has a flat 10-cent per medical mile deduction. You might ask if one thin dime can make a difference; I want to tell you that it can! Think of how many visits to the doctor or dentist an average size family makes during the year.

Even with a reasonable working knowledge of bookkeeping, reading all of the publications, you may still have some questions. A great resource book is J.K. Lasser's Your Income Tax 1997.

Imagine my surprise and delight when I found that I could download the complete book for free at Tax & Account Sites Directory. This is a wonderful place to "get your feet wet" if you don't feel comfortable going directly to the I.R.S. Web Site.

Perhaps instead of a book, you are interested in accounting software. Before purchasing software, try to research how well it will suit your needs. Tax Shop offers free trials of professional software. They have several packages that you can preview.

Another helpful area I utilized was Tax Logic (aol://4344:866.mainpage.7602470.503776597). I knew that medical mileage to and from the doctor was deductible, but what about the mileage to pick up prescriptions? I posted my question in the correct folder and received a response within 24 hours! Yes, I could deduct this mileage as well. So how did those thin dimes add up for this taxpayer? My medical mileage deduction for 1996 was $244.00.

Tax Logic (aol://4344:866.mainpage.7602470.503776597) is hosted by tax professionals. They have already posted the I.R.S. Standard Mileage rates for 1997, in case you decide to start compiling your tax data early.

They answer general questions, but they don't do your taxes for you (which I found reassuring). Legitimate assistance is plentiful, but be extremely wary of anyone who is too interested in your financial information, or is eager to get personally involved with your taxes.

If you are avoiding preparing your taxes until time has almost run out, why not turn to the internet as I did? Thanks to the help and guidance I found on the internet, on April 15th instead of playing beat the clock at the post office, I can enjoy myself all night long, dancing at the ball with a handsome prince -- even if I can't claim my evening out as an entertainment expense!