Rich Dad Education Blog

While Congress quibbles over the details of the economic stimulus plan, many Americans are already thinking about what they’re going to do with the tax rebate money when it arrives.

A recent Baltimore Sun article by Eileen Ambrose had some good suggestions, including paying off credit card debt, setting up an emergency fund, saving for college or retirement—anything that will improve your overall financial condition, she writes.

The article quoted Christopher Brown, a financial planner in Rockville, Maryland, as saying, “If I could wave a magic wand, people would spend it on job training.” That, said Brown, could lead to higher-paying jobs which would be better for both workers and the economy.

Here’s an even better idea: Use the tax rebate money to invest in training that will improve your own financial literacy. Get education that will teach you how to make money work for you rather than you working for money. What a great way to spend the money that is supposed to help stimulate the economy!

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Earlier is better when it comes to working on your taxes. Taxpayers are encouraged to get a head start on tax preparation, especially since early filers avoid the last minute rush and get their refunds sooner.

Here are seven easy ways to get a good jump on your taxes long before the April deadline is here:

1. Gather your records in advance. Make sure you have all the records you need, including W-2s and 1099s. Don’t forget to save a copy for your files.

2. Get the right forms. They’re available around the clock on the IRS Web site, www.IRS.gov.

3. Take your time. Don’t forget to leave room for a coffee break when filling out your tax return as rushing can mean making a mistake.

4. Double-check your math and verify all Social Security numbers. These are among the most common errors found on tax returns. Taking care will reduce your chance of hearing from the IRS and speed up your refund.

5. E-filing is easy. E-filing catches math errors and provides confirmation your return has been received and gives you a faster refund.

6. Get the fastest refund. When you e-file file early, you receive your refund faster. When you choose direct deposit, you receive your refund sooner than waiting for a check.

7. Don’t panic. If you have a problem or a question, remember the IRS is there to help. Try the IRS Web site at IRS.gov or call the IRS customer service number at 800-829-1040.

Are you concerned that your efforts to get ready early may be affected by the Alternative Minimum Tax legislation passed by Congress in December? Most individuals will not be impacted, so it is still a good idea to get an early start on your preparations. Even if you are filing one of five forms affected by the recent legislation, the IRS expects to be ready for your return by February 11. You can review a list of the impacted forms and find out the latest news about when the IRS will be ready for your return at www.IRS.gov.

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