A Guide to Tax Season for the Last Minute Filer: How to Get the Biggest Refunds & Avoid Rookie Mistakes

Molly Greenberg for inthecapital.streetwise.co writes: Editor's Note: This article was written by Sara Enan, a Research Analyst for Nathan Associates' domestic litigation department. While originally from Egypt, Sara made her way to the United States to attend college at Brandeis University. There she received her Bachelor's in economics, mathematics, and business. Below you will find Sara's take on tax season, advice for those of you who still haven't filed.

The dreaded tax season is upon us, with Americans nationwide struggling to finish filing prior to the federal deadline on April 15, 2013. While we cross our fingers, praying to the money gods that the federal government doesn't take too much of our income that we protect so dearly, we know that the IRS is just moments away from sinking its teeth into our very livelihood. So, to ensure that you receive the refunds you are due, the tax reductions you should be afforded, and your w-2 files, they're as beautiful as can be, Sara Enan, Research Analyst for Nathan Associates' domestic litigation department, has shared with InTheCapital her sage advice on how best to tackle your taxes before April 15th.

1. When you begin to file, remember that organization is key. Make sure you have W-2’s from ALL employers you worked for in the past year, 1099 form if you had a savings account, tax credit forms, all relevant receipts, insurance related documents, and the previous year’s tax return.
2. While filing, you might be able to claim itemized deductions that could help you receive a bigger refund. Here are some common deductions that people tend to forget about:
   1. Dependents: You could potentially claim up to $3,800 for supporting a child, sibling, or friend.
   2. Charitable Contributions: Yes, Karma truly does exist! You get deductions for donating money to non-profit organizations.
   3. Job Search Deduction: That's right, if you kept track of the amount of money you spent on developing your resume, travelling to interviews, and on phone calls made to prospective employers, you can deduct those expenses on your tax return. Here are some more deductible expenses: http://www.irs.gov/publications/p529/index.html.
   4. Income Tax Credit: Based on income limitations, you could be eligible for a credit as high as $5,891.
   5. Self-Employment: If you are self-employed, you can received deductions for work-related meals, Internet, phone, transportation, and sometimes even work space!
   6. American opportunity Tax Credit: You can get a deduction of up to $2,500 for undergraduate education-related expenses.
   7. Student Loan Interest Deduction: You could receive a deduction of up to $2,500 if you received a 1098-E form for interest paid on your loans.
   8. And finally, remember to have all your receipts when claiming these deductions!
3. By now you must have seen hundreds of ads for tax programs with witty puns, but when it comes to taxes, the power of marketing should have no influence.
   1. The IRS has created a short online questionnaire to help you find the most suitable program for you to file your taxes: http://apps.irs.gov/app/freeFile/jsp/wizard.jsp?ck.
   2. They have also provided a list of approved programs: http://apps.irs.gov/app/freeFile/jsp/index.jsp?ck.
4. If you are filing as an International Student like myself:
   1. If you are a student who hasn’t earned any US income in 2012, then you’re in luck. You get to file only ONE FORM to confirm your non-resident tax status. This short form can be found right here: http://www.irs.gov/pub/irs-pdf/f8843.pdf.
   2. If you are a student AND you earned income in the US in 2012, then you will need to file a 1040NR (http://www.irs.gov/pub/irs-pdf/f1040nr.pdf) OR for certain Nonresident Aliens with no dependents, you can file 1040NR-EZ (http://www.irs.gov/pub/irs-pdf/f1040nre.pdf), qualifying checklist: http://www.irs.gov/pub/irs-pdf/i1040nre.pdf.
   3. For the most part these forms are pretty straight forward with good instructions, but if you run into any problems you can always use Windstar Non-Resident Tax software to assist you with filing your federal tax return.
5. Once you are done filing, you may be one of the lucky few expecting a refund. Now that may sound amazing, but don't start planning a rager and buying an entire new summer wardrobe. Your tax refund is worth just as much as the money in your paycheck.
   1. DO NOT use it buy a new car, house, or TV. You’ll just end up growing your debt.
   2. DO save it for a fun trip or adventure, after all, you only live once.
   3. DO NOT go to the mall. If you wanted new clothes you would have bought them before you got your refund.
   4. DO pay off your credit card bills and loans.
   5. DO NOT use it to loan your friends money, but DO use it to make a charitable donation which will qualify as TAX DEDUCTIBLE next year.
   6. DO file form 8888 to deposit your refund into separate accounts. What you can’t see you can’t use: http://www.irs.gov/pub/irs-pdf/f8888.pdf.
   7. Please DO make a wise investment that will generate future income even if it has a small return. Some good examples are IRAs, CDs, stocks, or open a savings account (if you haven't done so already).

Happy filing and here's to bigger refunds! Just remember to check your math, sign your taxes, mail them to the correct address and save a hard copy in a safe place!