Tax season 2011 tips, tricks and updates

</element><element id="paragraph-1" type="body"><![CDATA[Tax season is underway and no doubt you are hoping your tax bill is low. To assist you, Congress extended many of the popular tax credits and deductions that have been in effect over the past few years. If you made energy efficient improvements to your main home such as exterior door, insulation or windows, you may benefit from the Residential Energy Credit . Did you pay tuition for one or more college students? You might want to check out the Education Credit and the Tuition and Fees Deduction to see which option best suits your financial situation.

Although tax season began in January for some, millions of taxpayers were delayed as filing season for them began February 14, 2011. If you claim Schedule A Itemized Deductions, Education Credit, or Educator Expenses, then you were affected by the delay. Have you wondered, what are "itemized deductions"? Itemized deductions include medical and dental expenses (including health insurance premiums, copayments and medical miles), state and property taxes, mortgage interest and deductible mortgage insurance premiums, charitable donations, job expenses, casualty and gambling losses, among other things.

This year, if you are paying 50% or more of your own health insurance costs directly to the insurance company, you may want to consider taking the new Health Coverage Tax Credit. Starting this year, employers will be required to report the value of the employees' health insurance coverage on their W2 forms.

For quite some time, the IRS has allowed tax filers to deposit their tax refund into one or more bank accounts. This year, in addition to banks or credit unions, tax filers can elect to use their refund proceeds to purchase U.S. Series I savings bonds. If you choose to use your refund to purchase bonds for yourself or someone else, you must complete Form 8888.

In an effort to provide greater consumer protection, the IRS has made several changes. The IRS no longer provides a debt indicator to banks offering tax refund loan programs. This change led to a sharp decrease in the number of high interest tax refund loans being offered to the public. To further regulate the tax industry, all paid tax return preparers are now required to register with the IRS by obtaining a Preparer Tax Identification Number (PTIN). In addition, preparers not currently holding a professional tax designation such as a CPA or an Enrolled Agent will be required to pass a competency exam and meet annual continuing education requirements.

In case you have noticed that your paycheck recently seems a little larger, it is not a mistake. Payroll taxes have been lowered two percent from 6.2 % to 4.2% as a part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. Employers were given new withholding tables and a deadline of January 31, 2011 to implement changes. If an employer did not adjust their withholdings in a timely manner, the IRS is giving them until March 31, 2011 to reimburse the difference. See the IRS withholding calculator to determine your correct number of withholdings.

Finally, in order to keep pace with the latest technological advances, the IRS offers a variety of ways to access information. If you would like to check the status of your refund, download forms or research a particular tax topic, you can visit the IRS website. This year, filers can now check the status of their refund via their smart phone or listen to an IRS update on their mp3 player. Of course, if you are unable to get the information you need via any of the above-mentioned means, you can always call the IRS directly at (800) 829-1040 or consult your tax professional.

In observance of a holiday in Washington D.C., the tax-filing deadline has been extended to April 18th for this year.