Consumer Reports

It’s Tax Day! Accountants everywhere are rejoicing that they can see the light at the end of the tunnel of their busy season. But if you’re one of the people who still hasn’t finished their taxes, you’re probably scrambling to make sure everything is done and filed by today’s deadline. If you don’t get your taxes paid on time, you could be fined or get hit with failure-to-pay penalties. The IRS offers some great tips on how to avoid that, including electronic and installment payment options. You can also request an extension to file through the IRS e-file system. That extension will give you until October 15 to file your tax return. The catch is that if you owe money, your payment is due today. I put my tax stuff in the mail a few weeks ago, but I have some friends who are still tying up the loose ends on their returns. Are you an early tax filer or do you wait until the last minute?

If you’re like millions of Americans, you might be wondering when your federal tax refund will arrive. Of course, if you’re like me, there’s no need to wonder because you haven’t even filed your taxes yet. There’s still two more days! These days you don’t have to wonder about your federal tax refund status . You can check the status of your federal tax return on the IRS (Internal Revenue Service) website. It’s also possible to check the status of your return by phone by calling the IRS TeleTax System at 1-800-829-4477 or the IRS Refund Hotline at 1-800-829-1954. If you e-filed your taxes, your refund information is available about 72 hours after the IRS acknowledges receipt of your e-filed return. If you mailed a paper return, it takes 3-4 weeks until the information is available. And as always be alert and don’t fall for any tax refund scams or fraud . The IRS never requests detailed personal information through e-mail, and they don’t send e-mail requesting your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts.

Tax season always reminds me of my uncle who used to earn a few extra bucks moonlighting at a tax preparation firm this time of year.

I got my W2 in the mail the other day, which meant only one thing: A quick phone call to my mom the accountant to ask her to help me with my taxes . But mom, being the smart person that she is, decided I should probably try to do my taxes myself, so she told me about www.irs.gov/freefile , a website that helps people file their taxes for free if they meet certain income requirements. There’s a little quiz that asks you some questions such as age, estimated gross annual income, whether or not you’re married, and then it suggests a list of possible free software tools that will help you fill out your federal taxes forms . For someone like me, fairly new to the work world and a complete newbie at filing taxes , an option like this is really helpful. For more information about filing your taxes, including information on the new rules that will let you claim Haiti donations on your 2009 returns, you can check the IRS website . How do you prepare your taxes? Do you use a software program, an accountant, or file by hand?

Two of my friends bought their first house this year and are moving in this weekend. They get married this spring, but they wanted to take advantage of the $8,000 first time home buyer tax credit , which meant they had to buy the house before Dec. 1, 2009. However, now there is a debate in Congress on whether the tax credit should be expanded or continued next year. Some of the potential expansions include increasing the amount of the credit from $8,000 to $15,000, making the credit available for all of 2010 and opening the tax credit to all home buyers who meet the income requirements (currently $75,000 for those filing taxes separately and $150,000 for those filing jointly.) Those who support the idea expanding the tax credit believe the credit will help cut down on the amount of foreclosures and prevent the housing market from falling farther. Those who are in favor of letting the credit expire at the end of this year worry that expanding the credit would inflate house prices temporarily causing a severe drop off when the credit eventually does expire. They also worry that eventually the credit will have to be paid for through higher taxes. So where do you stand on this issue? Are you in favor of expanding the credit or letting it expire after this year?