The new year means its time to start thinking about filing this year's taxes.
There are several things to pay attention to this year, the first being the filing date. Normally it's April 15, but this year, it's been extended to Monday the 18th. That's because the 15th falls on a holiday weekend in Washington D.C.
That's good news for procrastinators, but the IRS wants you to get finished early with a new "Free File" program. It's a free way to do your taxes with either a brand-name program or online forms.
If you make $58,000 or less a year, you may qualify to use free tax preparation software and electronic filing through the Free File program.
IRS Senior Executive David Williams said, "It will interview you and based on your answers to complete your return is a good way to get tax breaks."
In addition, everyone can e-file for free through the Free File Fillable Forms program.
IRS agents say this 2010 tax year will be known as unusual for many reasons.
There are several things to pay attention to this year, the first being the filing date. Normally it's April 15, but this year, it's been extended to Monday the 18th because it falls on a holiday weekend in Washington D.C. But that's not all.
This year some people won't have their filings looked at by the IRS until February.
IRS Senior Executive David Williams said, "Congress waited until late to pass tax legislation and the IRS needs time to reprogram computers to deal with those tax breaks. Not everyone is affected but if you itemize or have certain education tax breaks, the IRS won't see your form until February."
But that doesn't mean you can't file. If you do file, the software program will hold your returns until the IRS can handle your form.
Also remember all the tax credits you are eligible for, including the first-time homebuyers tax credits, and some credits for education and energy efficiency. Another new one is the earned income tax credit.