How to do 2007 tax returns FREE e-filing

Are you still waiting to e-file your 2007 Taxes, then you better hurry up cause the 2007 tax returns due date is not too far away. Its better to start early so you are in a good share to finish on time. Its extremely important that you sort out your 2008 Tax Forms before you start the IRS tax e-filing. In order to start your 2007 returns,

1) first gather all your tax records and separate them into categories. Make files for each type of category.

2) Next, put all your income-related documents, such as W-2s, 1099s and any other records of income you received for 2007 into one file.

3) Put all your expense-related documents in another file, including Form 1098 from your mortgage lender, property tax receipts, cancelled checks for deductible expenses, charitable receipts and any related documents that goes along with this.

 4) Remember, Qualified Dividends are taxed at 15% or 5% depending on your regular tax bracket similar to the long-term capital gains. The 5% category applies for 2007, but drops to 0% for 2008 through 2010. so next year, this will be 0%.

Now lets look at some Tax deductions, people often overlook or totally miss out while preparing their IRS tax returns.

1) Non-cash charitable contributions : Your charitable volunteer work may be deductible. Although, in many cases you need to have substantial proof.

 2) Health insurance premiums : you can deduct 100% of your health insurance premiums, If you're self-employed and not eligible to participate in another employer-paid plan.

3) Moving Cost Deductions: If you moved your business or shift to another city for work, you should be able to deduct some of your moving costs.

4) Work-related expenses : You should be able to safely get deductions on work related expenses which are not reimbursed to you by your employer.

5) Tax Preparation Expenses: Did you spend money on preparing for your taxes? Then you can claim that as well.

6) Refinancing costs: Did you refinanced your mortgage to get a lower interest rate? Then those points that you paid can be deducted on an annual basis amortised over the life of the loan.

Finally a Few tips for Newbies :

1) You must include your Social Security Number including infant children.

 2) Keep all your charity receipts, Bills, Premium receipts.

3) Better to use direct deposit to get your refund.

There are various companies who offer Free Tax E-Filing, Lets look at the choices:

1) No Wait Tax Refunds: These guys offer instant tax returns. There's no need to wait for you tax refund.

2) Tax Act 2008: Tax Act Online allows you to prepare, print and file taxes for free.

 3) ElimiTax : Legally and easily terminate your tax debt. FREE Service.

 4) Can't Pay IRS : You can get some expert help for FREE.

5) Tax Defense : Users get assistance with developing a plan to pay their tax debt.