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MAKING TAX TIME LESS TAXING
Do you realize that most of us will spend a month of our lives
completing federal tax returns? It's true. The IRS estimates it lakes the
average taxpayer 13 hours a year to manually complete a federal tax
return. And that doesn't include preparation time I How would you like to
get those taxes done and get on with life? Use these tips below to find
out how to make tax season much less taxing:
Equip yourself— Any tax
simplification plan begins with
the most important piece of the
equation - a great computer.
Choose one that accommo
dates the latest tax software,
allows internet connections,
and has any additional fea
tures you may want. Consider
a computer from HP, the #1 seller of desktop and notebook PCs in the
world. HP and Compaq computers will give you the computing
muscle you'll need at tax time plus the versatility to increase your
productivity, store data, play music and movies, bum your own CDs and
DVDs, ana simplify your digital photography needs. And HP backs up
their products with award-winning customer care available 24 hours a
day, 7 days a week, 365 days a yeGr.
Select a program —Every HP and Compaq computer comes loaded
with either Microsoft Money or Quicken, two excellent, easy-to-use
financial programs. You can track your income and spending as well as
record household inventory for insurance purposes. Each program also
allows you to highlight transactions in advance that pertain to taxes - an
asset to finding those forgotten deductions. H
Accessorize— Using a computer with a high-speed
internet connection (for connecting to wwwir&gov
for forms and information) will save you time. You'll
also need printing equipment for hard copies of |
tax documents and reports. HP offers superior, I
award-winning printers, ink and paper that I
I . W
B ,jSK M T
* IE
Track everything— Now that you're set electronically, input all
financial transactions into your financial program throughout the year.
Include income, expenses, debts, credit card transactions - everything.
(Be sure to keep hard copies in one, secure place for backup.) At
year-end, your financial software will spit out the needed information for
your tax professional or, if you prefer, link with tax software that allows
you to do your own taxes and helps you file electronically.
It's as simple as that— With the right equipment, software, and
accessories from HP, tax preparation and filing become much simpler
and less time-consuming - leaving you with lots of extra time to enjoy life.
For more details on finding an HP computer that suits your needs, visit
your nearest Wal-Mart or shop online at www.walmart.com.
- BHJHH
both connect and work
seamlessly with HP computers and deliver
the color, clarity, and fade resistance that
knock-offs just can't copy. For users who
need a bit more, HP's all-in-one machines
can print, scan and copy.
1?’
Finance
* Filing
Taxes
Electronically
Spring is in the air, which means the birds are
singing, snow is melting and millions of Americans are scrambling to prepare their
income tax returns. This year, don't let tax filing dampen your spirit. Instead try elec
tronic filing—known as e-filing—to eliminate some of the hassles assixriated with tax
season and gain some benefits as well.
In 2004, 60 million Americans e-filed their returns via computer, according to the
Internal Revenue Service. “In a little over three years, our firm has gone from just a
handful of returns filed electronically to virtually every return being filed electroni
cally," says Eric F. Good, a certified public accountant with Andrews, Hooper and Pav
lik in Grand Rapids, Mich.
Some of the advantages of e-filing include:
Faster refund. With e-filing, your return can be direct deposited into your bank
account in 10 days or mailed to you by check in three weeks; about half the time it
would take if you filed a traditional paper return.
Fewer mistakes. The IRS reports that 17.5 percent of returns prepared on papier
have errors—mostly from miscalculations—and half of those errors result in
an overpayment to the government. “With e-filing, the accuracy of the return
is improved as clerical errors are avoided, both on the part of the preparer and
the IRS," Good says.
Assured receipt. You get verification by e-mail that the IRS has received your
forms within 48 hours after electronically sending your return to the federal agency. In
addition, you can track your tax return’s progress on the IRS website: wunv.irs.gov.
Environmentally friendly. "E-filing is the green' thing to do as it saves papier,"
says Roger Steensma of Hoffman, Steensma, and Plamondon, an accounting firm in
Muskegon, Mich. (pop. 40,105).
Save time. You can skip that trip to the post
office because you can file from your home com
puter. Plus, you can usually file your state tax
returns at the same time.
It’s safe. The IRS has stringent policies regarding
privacy and security issues.
Here’s how to file electronically:
Step I: Gather your information.
Compile any Social Security numbers you may
need, as well as W-2 forms, 1099 forms for dividends,
retirement, or other income, or any 1099 forms with
income tax withholding, and all other important
receipts and records.
Step 2: Choose your e-filing method.
Do-it-yourself: You’ll need a computer with a modem, Internet access and tax prepa
ration software. Simply follow the directions from the software. For more information
on e-filing and a list of IRS-tested-and-approved software companies, visit the IRS
website. You may be eligible for free online services if you are in an average- or low-
Page 14
•American Profile
by JOHN
NARDINI