Delray Beach, FL (PRWEB) March 4, 2010
NationalCreditReport.com, a leader in credit monitoring services, today announced tax saving tips that can help consumers improve their credit scores. Although the tax filing deadline is drawing near, there are still a few tactics consumers can utilize to help minimize their tax bill. NationalCreditReport.com urges consumers to use money they save on their tax return, or money they receive as a refund, to pay down debt and potentially improve their personal credit score over time.
"One of the most important ways to save on your tax bill is to contribute to a retirement account," said Samuel S. Ambrose, NationalCreditReport.com's Vice President of Marketing and Operations. "Not only could this have an immediate, positive effect on your tax bill, but more importantly it helps build your nest egg for retirement. Furthermore, any money you save on your tax bill now can be used to pay down debt, something we always recommend to consumers who hope to improve credit scores." For qualifying consumers who intend to fund their retirement accounts - whether a traditional IRA or a Roth IRA - for 2009, they must do so by April 15, 2010.
The company also reminds consumers that if they cannot file their tax return on time, it is critical to file an extension, or Form 4868, by April 15, 2010, to automatically extend the individual income tax return filing deadline to October 15, 2010. Filing for an extension on time is imperative to avoid a late-filing penalty if a consumer is found to owe the IRS money. Late filing penalties can range from 4.5 percent per month to 22.5 percent per month of the tax owed, and late payment penalties can range from 0.5 percent a month to 25 percent a month of the tax due.
Another tax saving tip is to use electronic filing when possible. This is often the best choice if a consumer expects a tax refund. Electronic returns are typically processed much quicker than paper returns, and refunds are similarly received much earlier. This is particularly true for those consumers who opt to receive their refunds through direct deposit. The company recommends that consumers who are working to improve credit scores use their refund to pay off debt when possible.
Finally, in order to help prevent identity theft and keep your personal credit report in good standing, if you file your own return online, be sure to use a computer that has up-to-date anti-virus, anti-spyware and firewall protection. Furthermore, always store all sensitive information on a computer protected by a strong password. If you don't do your own tax return, chose a reputable tax preparer. Your return contains important Personally Identifying Information (PII) that your tax preparer is prohibited from sharing or selling without your consent.
Since 2004, NationalCreditReport.com has specialized in providing credit information and credit monitoring services, as well as tax savings tips, to consumers to help them improve their personal credit report and protect them from identity theft.
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