Free E-Filing Choices

• You don't always have to pay for tax preparation services and programs. If you are filing your own taxes, first find out if you are eligible to e-file for free. There are many different websites where you can file electronically without a charge if your income falls under a certain level (usually about $56,000 or less). Go to the official listing of free e-file websites (see Resources) to see the exact requirements for each service.
  
  

Deductions

• There are a few deductions that apply to many people, yet can be easily overlooked if you rush through your return. For instance, if you moved during the previous year for work purposes, you may be able to deduct your moving expenses, including travel and the cost of moving supplies. The new workplace must be 50 miles farther from your home than your previous job.
  
  If you have a student loan bill that you pay every year, the interest you pay on the loan is deductible on Form 1040. Finally, if you itemize your deductions on Schedule A, you can deduct gambling losses, up to the amount of any winnings that you report on line 21 of Form 1040, as well as certain casualty and theft losses you experienced under "Other Miscellaneous Deductions."
  
  

Receipts and an Expense Journal

• When you own a business, you should keep two things---a receipt book and a business expense journal. When you get a receipt that is directly related to business, immediately jot down what the money was spent for if the purpose is not clear. This will help to avoid confusion when categorizing your expenses at tax time. Document all of the eligible major expenditures and travel that you make in the course of business that cannot be evidenced by receipts in your journal.