Get Your Taxes Done in 7 Days

Let's start with the name: the income tax. That means you need to gather all your earnings information.

Start with your W-2 wage statements. You should have one for each salaried job you had last year.

Don't forget any 1099 forms. These statements, each with a different suffix, will come from various sources.

You'll get some from employers if you did independent contract work. Others will come from banks and investment companies if you owned financial instruments that paid interest or dividends or you sold a stock or other property.

Are you a gambler? It's not a good idea to take chances with the Internal Revenue Service, so be sure to report any winnings because that money is taxable, too.

Retirees also take note. You might owe the IRS on part of your Social Security.

Even tough economic times are no insulation from the IRS. If you collected unemployment, those payments are taxable. You should have received a Form 1099-G showing the amount of unemployment upon which you'll owe taxes.

Find all these income statements, along with other tax-related documents you received earlier this year. Your tax tasks for the day are done.

Today we start slashing your tax bill by claiming exemptions, dependents and a wide variety of adjustments to income. And this is all done on the first page of your 1040 or 1040A tax return.

First, your exemptions: On your 2010 return, you get to take $3,650 off the top for each person you claim as an exemption. That's generally a pretty easy determination: you, your spouse and any dependents, which generally means your kids. But did you care for a parent, even one who didn't live in your home? You may be able to claim an exemption for that person, too.

The key thing to remember when it comes to folks who qualify as your dependents is that you need their Social Security numbers. Without those nine digits, the IRS will disallow the claim.

Next, there are some expenses eligible taxpayers can claim directly on the 1040 or, to a lesser degree, the 1040A. These are known as adjustments to income or above-the-line deductions and include, to name just a few, certain IRA contributions, student loan interest, alimony payments or moving costs.

Take a few minutes to check out the complete income adjustments list and note which ones apply to you. That's it. You're done for today.?

The real fun begins today with deductions. You can choose between the standard or itemized deduction amount.

Most taxpayers use the standard deduction rather than bothering with tracking every expense to itemize. If the standard amount works for you, great!

If, however, you have substantial tax-deductible costs, such as additional home-related write-offs, medical expenses and charitable donations, you'll want to maximize those expenses by itemizing.

The important thing when it comes to itemized deductions is to have the documentation to back up your full array of Schedule A itemized costs.

Go back to the material you collected on day one. Your W-2s will show how much state and local income taxes you paid. Find that statement from the mortgage company showing your loan interest and property tax payments. And dig out the receipts you got for all your deductible donations.

Make sure you don't miss any, because all these amounts will help whittle your income to the lowest possible taxable amount.

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