(Word count = 1,231 words plus 32 words for About the Author)

Stressed out ? - Okay, another year has flown by and you're in the same predicament as last year. Your tax returns are not yet prepared and there's just days left before April 15h.   You never hired the CPA your sister told you about to do your tax returns.   All you've done is stuff the tax statements you've been receiving into red folder on which you wrote "2006 Taxes" in big black block letters.   You're worrying that the mounting stress is going to cause those red blotches on your arms and legs again. Your husband is away again on a business trip, your middle-school son is in the school play with nightly rehearsals, your away-at-college drama daughter needs emotional phone support day and night, and your frail-but-determined parents are asking for your help to strip the wallpaper and paint the kitchen.   What do you do?   My four-step solution for you is to focus, plan, organize, and act - starting right now!

#1 - Focus -

Every 60 minutes you put off doing "something" makes te "something" grow by at least one mile in emotional mileage. Forget getting help.   It's too late to get a CPA, at least a reliable one.   The quickie tax services, at this late date, may cause you more anxiety. Assure yourself preparing taxes is much simpler than giving birth, handling your boss or running your sideline business. To everyone who calls you over the next few days, tell them, "Sorry, but I' can't help you until after I prepare my tax returns which I'm smack in the middle of."   Your parents' kitchen can wait.   Get a friend to transport your son to play rehearsals.   Plead with your daughter to talk to your sister instead of you for female guidance.   Put your home phone on forward to your cell phone and turn the cell off.   Let the messages accumulate, at least for today.

#2 - Plan -

Get that folder with your accumulated tax documents. Okay, there are the W-2s for you and your husband, the 1099 bank interest statements, the brokerage firm statement, the Schedule K-1 for that losing illiquid investment you bought years ago that still gives $85 in interest income, the summary for your rental beach home, the 1099s you received for customers in your sideline consulting business, the 1098 form for mortgage interest and taxes paid on your house, the form from your daughter's college for tuition paid and the form about interest paid on the college loans.   You also see the statements regarding the small custodial accounts you set up years ago but never added to.   Oh, there it is, the slip from the Salavation Army for the household items and clothes you gave away during the summer.

#3 - Organize -

Go to the store and buy   "JK Lasser's Your Income Tax Guide" and "TurboTax" software, the home and business package that also includes Schedule C for sole proprietorships, in order to report your sideline business.   Install the program and have it up on the screen, in the "Easy Step" tutorial mode. Here's what I suggest in getting the paperwork organized.   Separate the forms (e.g. W-2 stubs, K-1 copy) that need to be mailed to the IRS and to the state, and attach them to the Federal and State mailing envelopes so you don't misplace them.   Get your checkbook register for 2006 to refer to if needed.   Put all your bank statements (with the reduced images of your checks, and if not get your checks) and credit card statements in a separate pile, separated by tabs.   In the upper left corner, punch all the papers and attach them with a metal fastener or spike. Number the pages A300 on so you have a solid record for the future if audited, and cross reference within the file. Go through all the bank statements and credit card statements and circle the items in pencil that may represent deductions, assigning a separate code to each type of expense.   B1 - Business expense - supplies, B2 - Business publications and information expenses, R1 - Rental property repair, R2 - Rental property commissions paid, M1 - Medical expense - health insurance premiums, M2 - out-of-pocket prescriptions paid, C1 - Contributions in Cash, and so on.   Now, tabulate all these expenses.   If you opt to not use Excel, another way by hand may be just as fast.   On separate sheets of paper write at the top "Sideline Business Expenses," "Medical expenses,"  "Rental property expenses" and so forth.   Then transcribe the items from the statements onto these sheets, grouping the subcategories (e.g. all M1 in one section of the sheet, M2 in another section on the Medical Expenses sheet.   Keep notes of possible deductions and credits such as for storm windows and furnaces, etc.

#4 - Act   -

Now gather all the income-related forms, placing them in the order of their appearance on Federal Form 1040.   Behind them put all the forms received from third parties related to expenses (e.g. mortgage interest, charitable contributions, etc.) and behind that place all the sheets you created in Step #3 to summarize your deductions.   All papers attached by the spike so nothing gets out of order.    Time to enter the info into TurboTax.   Circle in red the numbers you enter.   Use the "Easy Step" mode, answering the questions prompted.   Be sure to fill in all the information.   As a first step, remember any carryover info, such as any unused capital losses from prior years, the cost basis of your rental property and depreciation info, the state income taxes you may have paid in 2006 related to 2005 but deductible for Federal purposes in 2006, any estimated taxes you paid to the IRS and to the state for 2006.   Be careful in checking off on the input form whether the income items pertain to you or your spouse.   As you go along, keep notes of your questions.   Use the JK Lasser guide for research or even put your question into google and see what others say.   Use the error-checking TurboTax tool to identify obvious mistakes.   Review JK Lasser's list of 2006 tax changes to see what relates to your situation.   Compare your return with last year's return to detect omissions. Make changes where necessary. Decide whether the returns seem okay, print them, including all the supporting statements (number them) in the filed packages, and enclose your check if you owe.   If you don't have enough money, pay what you can and wait for a notice.   If after print the returns, you find you are uncomfortable with what you've done, don't despair. File extension forms before April 15th, and during the next month then seek out an experienced local CPA to help you.    What you've already done will greatly help streamline the CPA's work and keep the fees lower than would have been the case.   If you decide to take that route, mail all out extension forms (keep mailing receipts as proof) that extend filing time, but not payment time, to October 15th.   You can download the extension forms from www.irs.gov or print from TurboTax   - Federal Form 4868,   NY IT-370, CT1040EXT, and NJ-630.   Good luck!

About the author:

Frank Sisco is a CPA and Personal Financial Specialist and writes on topics related to life and money.   He resides in New Rochelle, NY with his wife and daughter.