• Tax Act is a valuable tool.tax forms image by Chad McDermott from Fotolia.com
  
  No matter what you do for a living or how much money you make, it is important to file your tax return accurately and on time. Tax preparation software like Tax Act makes it a lot easier to file your taxes, but it is important to use the software properly.
  
  

Gather Your Information

• Gather all of your tax paperwork and income information before opening Tax Act and starting your return. Separate your tax paperwork into wage information, interest income, dividend income, pension income and self-employment income. Separating your documents before you get started will make it easier to enter the information into the Tax Act software.
  
  

Review Each Section Before Moving On

• One of the best features of Tax Act is that it separates each part of the tax return into a separate section, making it easier for tax filers to check their work as they go. Reviewing each section carefully before you move on allows you to ensure the accuracy of your return and reduce any errors and omissions. It is particularly important to review the 1099 information you enter for your interest, dividend and capital gains information, since the IRS receives a copy of the same 1099s you do. If there is a discrepancy between the amounts you report and the amounts the IRS received, you can expect a letter from the IRS requesting additional clarification and possibly requesting additional taxes and penalties as well.
  
  

Go Through the Audit Flags Carefully

• Another useful feature of the Tax Act program is the presence of audit flags that allow you to double-check your return before submitting it. Do not treat these audit flags as a mere formality - instead focus on each flag and read the description carefully. Go back to the relevant section of the tax return and review it carefully to remove those audit flags. Run the alert section again and continue running the alerts until no more problems are found.