Income Tax Time -- Tips

No one likes to pay taxes, but as the income tax preparation and filing time is here for another year, I believe it is important for government to operate efficiently for you in this process.  So as you work on your tax return, I want to share with you some tips that can help make filing your taxes more painless.

One way to quickly get your return and easily complete your taxes is to file electronically.  By electronically submitting your return, it eliminates the time it takes to mail in forms and is more convenient because it can be submitted 24 hours a day, seven days a week.  More information about filing electronically is available at http://dor.mo.gov/personal/electronic/.

The Missouri Department of Revenue (DOR) has also found that electronically submitted returns have about 16 percent fewer errors than paper returns.  Some common mistakes to watch for include math errors, not signing the return and/or forgetting to include documents such as any W-2s, bank and investment interest statements, copies of required federal documents and various receipts.  Check your return carefully before you submit it so you can avoid these common mistakes.

Another tip is to file early.  While many individuals choose to wait until they are pushing at the April 15th deadline, filing as early as possible can actually be a benefit.  In 2012, the standard tax day again falls on a Sunday, so you will have a little more available time to finalize your records and payment.  As tax season goes on, DOR becomes increasingly busy, so a return filed in March is more likely to be processed quickly.

The Legislature has focused on tax relief for citizens and helping businesses in Missouri over the past few years, and there are new tax deductions and exemptions that could benefit you.

For all taxable years beginning on or after January 1, 2011, and ending on or before December 31, 2014, if a small business creates new jobs; it may qualify to claim a deduction in the taxable year each new employee completes at least 52 weeks of full-time employment. The deduction is equal to $10,000 for each new job created or $20,000 for each new job created by a small business that paid at least 50 percent of all employees’ health insurance premiums.

Five new funds were added: the Organ Donor Program Fund, Foster Care and Adoptive Parents Recruitment and Retention Fund, American Red Cross Trust Fund, Developmental Disabilities Waiting List Equity Trust Fund, and the Puppy Protection Trust Fund.

Our ongoing phase-in to exempt a Social Security benefit is up to 65 percent this year.  Details on these and all other changes can be viewed at the “What's New” section of DOR’s website athttp://dor.mo.gov/vendors/updates.php

If you have questions or need help with your taxes, DOR can provide you some assistance.  The closest tax assistance center is located at 3102 Blattner Dr., Suite 102, in Cape Girardeau.  You can also call that office at (573) 290-5850 or e-mail capetax@dor.mo.gov

Military personnel with specific questions about military-related tax issues can e-mail military@dor.mo.gov  A military pension exemption may be taken on the Form MO-1040, MO-A, Part 3, Section D.

The toll-free, automated phone number to order forms from the Department of Revenue is 1-800-877-6881.  The general web address for Missouri tax forms is http://dor.mo.gov/tax/forms/.  Faxed copies of tax forms can be obtained by calling (573) 751-4800 from a fax machine handset.

 As always, I appreciate hearing your comments, opinions and concerns.  Please feel free to contact me in Jefferson City at (573) 751-5912. You may write me at: Shelley Keeney; Missouri House of Representatives; State Capitol 313; Jefferson City, MO 65101 or email me at: Shelley.Keeney@house.mo.gov