IRS says filing online is one way for faster refund

Nationwide, the impact of the AMT changes is estimated to affect a maximum of 4 million returns out of about 138 million. By Feb. 11, the IRS anticipates being able to process all tax returns, including those with AMT-related items.

The IRS offers the following tips that might save you time and money when you file your federal return:

1. E-file online at no cost using the IRS Free File program. You must have income of $54,000 or less for 2007. More than 1.7 million Tennesseans e-filed last year, many for free. E-filing offers a faster refund, a virtually error-free tax return, and confirmation of receipt by the IRS.

2. Take a 2007 tax credit for: (1) buying a new hybrid or alternative fuel vehicle; (2) certain energy-saving improvements made to your home; (3) contributions to a qualified retirement plan (subject to income limits); (4) certain higher education costs; (5) working but earning less than $40,000 (Earned Income Tax Credit).

3. Don’t settle for the standard deduction. Add up these 2007 expenses to see if they exceed your standard deduction, allowing you to itemize: mortgage interest, real estate taxes, charitable contributions, state income taxes or sales taxes, medical expenses (subject to limits) and certain other items.

4. Remember you don’t have to itemize to claim deductions for higher education tuition and fees and educator expenses.

5. Let trained volunteers prepare and e-file your tax return for free. Available to filers whose 2007 income was $40,000 or less or who file a fairly simple tax return. Call 211 in Tennessee to find a site close to you.

For more information on any of these topics, visit www.irs.gov or call the IRS toll-free at 1-800-829-1040.