(ARA) The American Recovery & Reinvestment Act makes early tax planning increasingly important. The number and complexity of the changes has prompted the IRS to release educational e-mails, videos, podcasts and other tools on a regular basis since the ARRA became law in February 2009.
“With so many credits requiring you to act before a certain date, do your tax planning now to determine where your money will be best spent over the coming months,” says Jessi Dolmage, spokeswoman for 2nd Story Software, Inc., makers of TaxACT. She also recommends the following steps:
1. Preview your tax situation using any one of a number of free online software tax returns. They will walk you through the ARRA credits and deductions, giving a more complete preview of your return.
2. Review your federal withholding. Use an online calculator that will estimate how much the credit is worth to you.
3. Compile receipts and documentation for purchases that will result in credits.
4. Visit www.IRS.gov/recovery to review all of the ARRA provisions.