What is electronic filing (e-filing) and why is it worth trying?

With electronic filing, you transmit your return to the IRS by computer instead of mailing it by U.S. mail. The primary advantage is that you will receive any refund in approximately two weeks instead of the usual ten weeks. Another advantage is that there are fewer IRS errors because human data entry is eliminated.

I use a home office. Should I take the deduction?

Home office deductions can save you money on your taxes, but you can enjoy these deductions only if you operate a legitimate business from your home and the space is used strictly for business purposes. A home office deduction frequently attracts the attention of IRS auditors, so be sure your office space qualifies before you take the deduction.

Are gifts, bequests, or inheritances taxable?

The general rule is that property you receive as a gift, bequest, or inheritance is not included in your income. If, however, property you receive in this manner later produces income such as interest, dividends, or rentals, that income is taxable.

What is 'itemizing' and is it beneficial to me?

When you itemize, you list on Schedule A of Form 1040 everything you paid during the year for items such as medical and dental care, state and local income taxes, real estate taxes, home mortgage interest, and gifts to charity. You then total the amount spent and compare that number with your standard deduction. The larger of the two deductions, standard or itemized, will be the deduction to choose, since it will lower the amount of federal income tax you will owe.