Start planning to file taxes

February means that it is a good time to start preparing for tax filing as IRS deadlines begin to approach.

One step for day traders and every other taxpayer is to check that any and all needed documents are on hand. This may include forms and records from employers, clients and other sources. Day traders may wish to review equipment expenses, for example, to determine how to benefit from tax breaks for businesses purchasing needed equipment. Those working out of a home office should recall the IRS rules for taking business deductions under those circumstances, which require that part of the house be devoted almost exclusively to work.

Marketwatch suggests those who find they do not have needed documentation from another party make contact and find out what is causing the delay, in order to make sure they get the records in time. It may also be convenient to ensure that one's filing system is neat and consistent while pulling together these documents is. It may be helpful to set up for next year, the news source notes, since bills and other relevant papers may have started to accumulate.

Those who anticipate owing money for their 2011 tax returns may want to start saving now, so they can pay in a timely fashion once they know how much they owe. Additionally, the news source notes, anyone who has suffered identity theft in the past should ensure they have their IP PIN, issued to those who report identity theft to prevent fraudulent filings under their name.