TheLoop21.com

By: Raechal Leone (Add to your loop)
Tue, 04/14/2009 - 00:00

There are more than a few good reasons to file your taxes on time this year.

The annual deadline for filing taxes comes every April 15 — that's Wednesday — but there are always stragglers who end up owing more than they would because they didn't pay on time. Save yourself stress and maybe even some money by getting your tax forms in on time and out of the way for another year.

1. This year, the IRS swears they're going to be more flexible with people who owe. Employees have been instructed to help taxpayers who can't pay their bill by working out payment plans. Douglas Shulman, the IRS commissioner, told NPR that people who can't pay now should send in their completed forms, along with what they can pay, and call the IRS at 1-800-TAX-1040 to let them know about their situation. "If they disappear, they'll end in trouble with the IRS," he said.

2. New rules could work in your favor. About 13 million people are looking for work in this dismal economy. If you're one of them, you may be eligible to receive money from the government to help pay for your health insurance, and you may be exempt from paying taxes on up to $2,400 in your unemployment money, as part of the American Recovery and Reinvestment Act.

3. You'll get money for paying down a bill or two. Most of us this year are, in fact, planning to spend our refunds on things we've already bought, including a mortgage, car, or various items long ago charged on our credit card, according to the Associated Press. An AP-GfK poll of about 1,000 adults released Monday showed 54 percent of people expecting money back from the IRS will spend it on bills. This time last year, 35 percent of people surveyed said the same. Is paying down debt as exciting as taking a trip or buying something really expensive? Of course not, but a few of us might sleep better at night.

4. The average refund check is bigger this year. It's $2,700, compared to $2,500 last year. All in all, the government projects it will refund about $330 billion to taxpayers this season. The sooner you file, the sooner you can claim your share.

5. It will only take a few minutes — really! If you file online, as about 60 percent of us are expected to this year, with forms gathered beforehand, the process goes quickly. As a bonus, if you provide the information to have it deposited directly into your bank account, you'll get your refund in about 10 days. Otherwise, you could be waiting for more than a month.

More resources:

Tax tips from H&R Block

Free tax forms and electronic filing, including forms for filing an extension

Frequently asked tax questions from the IRS

Raechal Leone is TheLoop21.com's senior editor and writes the Inside the Loop blog.