From the IRS, with the tax filing deadline close at hand, here are the top 10 tips the IRS wants you to know if you are still working on your federal tax return.

1. E-file your return Don’t miss out on the benefits of e-file. Your tax return will get processed quickly if you use e-file. If there is an error on your return, it will typically be identified and can be corrected right away. E-file is available 24 hours a day, seven days a week, from the convenience of your own home. If you file electronically and choose to have your tax refund deposited directly into your bank account, you will have your money in as few as 10 days. Two out of three taxpayers, 95 million, already get the benefits of e-file.

2. Review tax ID numbers Remember to carefully check all identification numbers on your return. Incorrect or illegible Social Security Numbers can delay or reduce a tax refund.

3. Double-check your figures Whether you are filing electronically or by paper, review all the amounts you transferred over from your Forms W-2 or 1099.

4. Review your math Taxpayers filing paper returns should also double-check that they have correctly figured the refund or balance due and have used the right figure from the tax table.

5. Sign and date your return Both spouses must sign a joint return, even if only one had income. Anyone paid to prepare a return must also sign it.

6. Choose Direct Deposit To receive your refund quicker, select Direct Deposit and the IRS will deposit your refund directly into your bank account.

7. How to make a payment People sending a payment should make the check out to “United States Treasury” and should enclose it with, but not attach it to, the tax return or the Form 1040-V, Payment Voucher, if used. Write your name, address, SSN, telephone number, tax year and form number on the check or money order. If you file electronically, you can file and pay in a single step by authorizing an electronic funds withdrawal. Whether you file a paper return or file electronically, you can pay by phone or online using a credit or debit card. Visit IRS.gov for more information on payment options.

8. File an extension Taxpayers who will not be able to file a return by the April 15 deadline should request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.

9. Visit the IRS Web site anytime of the day or night IRS.gov has forms, publications and helpful information on a variety of tax subjects.

10. Review your return…one more time Before you seal the envelope or hit send, go over all the information on your return again. Errors may delay the processing of your return, so it’s best for you to make sure everything on your return is correct.

From the IRS: Got Kids? They may have an impact on your tax situation. Listed below are the top 10 things the IRS wants you to consider if you have children.

1. Dependents In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.

2. Child Tax Credit You may be able to take this credit on your tax return for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit. The Additional Child Tax Credit is a refundable credit and may give you a refund even if you do not owe any tax. For more information see IRS Publication 972, Child Tax Credit.

3. Child and Dependent Care Credit You may be able to claim the credit if you pay someone to care for your child under age 13 so that you can work or look for work. For more information see IRS Publication 503, Child and Dependent Care Expenses.

4. Earned Income Tax Credit The EITC is a benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund. For more information see IRS Publication 596, Earned Income Credit.

5. Adoption Credit You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child. For more information see the instructions for IRS Form 8839, Qualified Adoption Expenses.

6. Children with Earned Income If your child has income earned from working they may be required to file a tax return. For more information see IRS Publication 501.

7. Children with Investment Income Under certain circumstances a child’s investment income may be taxed at the parent’s tax rate. For more information see IRS Publication 929, Tax Rules for Children and Dependents.

8. Coverdell Education Savings Account This savings account is used to pay qualified educational expenses at an eligible educational institution. Contributions are not deductible, however, qualified distributions generally are tax-free. For more information see IRS Publication 970, Tax Benefits for Education.

9. Higher Education Credits Education tax credits can help offset the costs of education. The American Opportunity and the Lifetime Learning Credit are education credits that reduce your federal income tax dollar-for-dollar, unlike a deduction, which reduces your taxable income. For more information see IRS Publication 970.

10. Student Loan Interest You may be able to deduct interest you pay on a qualified student loan. The deduction is claimed as an adjustment to income so you do not need to itemize your deductions. For more information see IRS Publication 970.

The forms and publications on these topics can be found on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

From the IRS, the American Recovery and Reinvestment Act was passed in early 2009 and created the American Opportunity Credit. This educational tax credit – which expanded the existing Hope credit – helps parents and students pay for college and college-related expenses.

Here are the top nine things the Internal Revenue Service wants you to know about this valuable credit and how you can benefit from it when you file your 2009 taxes.

1. The credit can be claimed for tuition and certain fees paid for higher education in 2009 and 2010.
2. The American Opportunity Credit can be claimed for expenses paid for any of the first four years of post-secondary education.
3. The credit is worth up to $2,500 and is based on a percentage of the cost of qualified tuition and related expenses paid during the taxable year for each eligible student. This is a $700 increase from the Hope Credit.
4. The term “qualified tuition and related expenses” has been expanded to include expenditures for required course materials. For this purpose, the term “course materials” means books, supplies and equipment required for a course of study.
5. Taxpayers will receive a tax credit based on 100 percent of the first $2,000 of tuition, fees and course materials paid during the taxable year, plus 25 percent of the next $2,000 of tuition, fees and course materials paid during the taxable year.
6. Forty percent of the credit is refundable, so even those who owe no tax can get up to $1,000 of the credit for each eligible student as cash back.
7. To be eligible for the full credit, your modified adjusted gross income must be $80,000 or less — $160,000 or less for joint filers.
8. The credit begins to decrease for individuals with incomes above $80,000 or $160,000 for joint filers and is not available for individuals who make more than $90,000 or $180,000 for joint filers.
9. The credit is claimed using Form 8863, Education Credits, (American Opportunity, Hope, and Lifetime Learning Credits), and is attached to Form 1040 or 1040A.

For more information about the American Opportunity Tax Credit visit the IRS Web site at IRS.gov/recovery.

From www.irs.gov, last year, 2 out of 3 tax returns were filed electronically. Was yours? If not, here are three important reasons to e-file your return.

1. It’s fast Your tax return will get processed more quickly if you use e-file.  If there is an error on your return, it will typically be identified and can be corrected right away.  If you file electronically and choose to have your tax refund deposited directly into your bank account, you will have your money in as few as 10 days.
2. It’s safe When you file a tax return electronically, the IRS is fully committed to protecting your information on our tax processing systems.
3. It’s time Don’t miss out on the benefits of e-file, 2 out of 3 taxpayers, 95 million, already get the benefits of e-file.

E-file software reduces the chance of making errors when you prepare your return.   However, some people still print the computer generated return and mail it to the IRS instead of hitting the “Send” button.  By mailing the return, taxpayers miss out on some important benefits of IRS e-file.

• With e-file, you get the peace of mind that comes with the electronic receipt you’ll receive notifying you that the IRS received your tax return.
• Virtually everyone can prepare a return and file it for free.  For the second year, the IRS and its partners are offering the option of Free File Fillable Forms. Another option is Traditional Free File.  About 98 million taxpayers – 70% of all taxpayers – are eligible for the IRS Traditional Free File.  Traditional Free File is a service offered by software companies and the IRS in partnership to provide free tax preparation software and free filing.
• E-file is available 24 hours a day, seven days a week, from the convenience of your own home.
• If you owe money to the IRS, e-file also allows you to file your tax return early and delay payment up until the due date.
• In 37 states and the District of Columbia, you can simultaneously e-file your federal and state tax returns.

Find out more about E-file at IRS.gov.

From www.irs.gov, if you were married or divorced recently, there are a couple of things you’ll want to do to ensure the name on your tax return matches the name registered with the Social Security Administration.

Here are five facts from the IRS for recently married or divorced taxpayers. Following these steps will help avoid problems when you file your tax return.

1. If you took your spouse’s last name or if both spouses hyphenate their last names, you may run into complications if you don’t notify the SSA. When newlyweds file a tax return using their new last names, IRS computers can’t match the new name with their Social Security Number.
2. If you were recently divorced and changed back to your previous last name, you’ll also need to notify the SSA of this name change.
3. Informing the SSA of a name change is a snap; you’ll just need to file a Form SS-5, Application for a Social Security Card at your local SSA office.
4. Form SS-5 is available on SSA’s Web site at www.socialsecurity.gov, by calling 800-772-1213 or at local offices. It usually takes about two weeks to have the change verified.
5. If you adopted your spouse’s children after getting married, you’ll want to make sure the children have an SSN. Taxpayers must provide an SSN for each dependent claimed on a tax return. For adopted children without SSNs, the parents can apply for an Adoption Taxpayer Identification Number – or ATIN – by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions with the IRS. The ATIN is a temporary number used in place of an SSN on the tax return. The W-7A is available on IRS.gov, or by calling 800-TAX-FORM (800-829-3676).

This past year has been a year of changes for many of you. Between the recession, job loss, and massive federal tax benefits and state tax increases, tax planning is more important now than ever.

Both the IRS and the state of California have changed the tables used to withhold income tax from your paycheck. Caution: These changes could mean you will owe a big tax bill.

Important changes include:

• Increased benefits for education expenses for 2009 and 2010;.
• Bigger credits for solar and energy efficient property;
• COBRA benefits and unemployment that may be taxable; and
• New California small business hiring credit.

Normally we like to try to push income into the next year and take deductions early. But that strategy may not be the best one in the next couple of years.

Also, job changes (including severance pay, unemployment, and income reduction), foreclosures, and investment losses present a new set of challenges. We want to make sure we limit your tax bill to the smallest legally possible.

The President wants to raise taxes on high-income taxpayers in 2011 and popular wisdom says the capital gain rates will go up. California is again in a big revenue shortfall. The Legislature has already borrowed from 2010 and 2011, so we could easily see large tax increases in 2010.

Check your withholding

As mentioned above, major changes in withholding and taxes for both federal and California could create a big tax bill.

If you fall into any one of the following categories, you should have your tax professional perform a withholding check-up to make sure you don’t have to write a big check this April. Schedule an appointment if you:

• Have children or other dependents;
• Have more than one job;
• Are married and you both work;
• Received a COBRA subsidy;
• Receive a pension and you have taxes taken out of your pension;
• Have or expect to have total income over $1 million;
• Owed taxes when you filed your last year’s return and did not change your withholding; and/or
• Got married, divorced, or became widowed this year.

Even if your financial situation is dire, a short tax planning session now could save a big tax bill and penalties next year.

U.S. taxpayers are required to report their worldwide income; that is, income from both U.S. and foreign sources. In addition, taxpayers who have an interest in or signature or other authority over a financial account in a foreign country, such as a bank account, securities account, or other financial account are required to file a Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), if the aggregate value of all such financial accounts exceeds $10,000 at any time during the calendar year. The FBAR is not filed with your tax return. Instead, it is filed with the Department of the Treasury in Detroit, Michigan, no later than June 30 of the year following the calendar year reported.

Failure to report income in foreign bank accounts, or to file the FBAR, carries serious consequences including large monetary penalties and, in some case, criminal penalties.

If you have foreign accounts and are unsure whether you are required to file the FBAR, contact your tax professional to review your portfolio and advise you.

Many of my clients have a significant portion of their wealth in IRAs and company retirement plans. There may be a benefit to move money among different plans, each of which involves its own set of costs and benefits.

One such opportunity is the “Roth conversion”. If you have a traditional IRA (one in which you got a deduction each time you made a contribution to the account), distributions from the account (presumably during your retirement) will be treated as taxable income. Distributions from a Roth IRA are tax-free.

You may convert all or a portion of a traditional IRA to a Roth IRA and make future distributions tax-free, but there is a cost: The amount of the conversion is taxable income in the year of the conversion.

There are two reasons why the conversions are at the forefront of tax planning strategies this year:

• There have always been income limitations that prevented many people from making the conversions. Those limitations go away in 2010.
• It is good planning to make conversions when income is down and you can report the income from the conversion in a low tax bracket. Many people’s incomes are down in this economy.

I would like to suggest that you schedule an appointment prior to the end of the year with your tax professional so you can plan on how to save the maximum amount of tax. Make sure you bring your most recent account statements.

From www.irs.gov, if you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.

Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.

1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.

For more information about the expanded First-Time Home Buyer Credit, visit IRS.gov/recovery.

While I was at the eWomenNetwork “Think Big” Business Summit in Roseville, California on Tuesday, I received a wealth of information from the speakers. They were wonderful and had a lot of fantastic information to share.

The problem that I find I run into when I go to events like this is that I get completely overwhelmed. I figure I cannot be alone in this feeling. I have to admit, I get a little frustrated too. Is it bad that I am admitting that? I get frustrated because sometimes the presenters almost make “it” look easy, when we all know “it” is not.

What is “it”? Success…

I don’t know about you, but I have been busting my butt for the last fifteen years. And while, yes, relatively speaking I have done very well for myself, it has been a very long and hard road. Not only that, I find I always want more. And, being the overachiever that I am, I want it now (and I think we would all like it to be easy).

My latest shift began just over a year ago. I was doing very well with my tax practice. However, I wanted more. I really wanted to change people’s lives. Although taxes are “fun” and all, I really do not feel like I am “changing people’s lives”.

So, I have decided to add different lines of service that I feel can really make a change. But, it seems like I keep running into obstacles everywhere I go with these new ventures. Everywhere I turn, someone or something seems to knock me on my proverbial butt.

So, what is the difference between success and failure? I really hate to be cliché, but…NEVER GIVE UP!!!!! Trust me, there are times I feel like the whole world is against me. Sometimes I feel like there are things out of this world that are against me. I feel like someone or something is constantly giving me gut checks when it comes to my life and my business. But, you know what? I consider myself a huge success. Do you want to know why? Because no matter how hard I get hit, I shake my head, stand up, dust myself off and keep on keeping on.

As my mother used to say when I was a child, “Watch out world, Kristi is coming through!” Well, now I am saying it…loud and clear. When I look into the eyes of my husband, my children, my parents, my employee, and especially when I look into the mirror I know how much they are relying on me to pick myself up and keep going. That is what gives me the strength I need.

So, why am I sharing this with you? Because I am not alone. And while some people may not want to share their struggles, I know I am not the only one. People need to know there are more people out there in the same boat.

Go look at yourself in the mirror and tell yourself you are a huge success because you have and never will give up. You already are a huge success!