Tax time can be scary, with all the formal looking documents arriving in your mailbox.  What do you do with all of it?  How do you know what you need to take with you when you’re ready file?  And how can you make sure you get the biggest refund possible? Here are some tips to help you have what you need, and keep more in your wallet:

Make sure you have all of your personal information handy. You’ll need:

• Your proof of identification such as a driver’s license or state issued ID card (and your spouse’s ID if you are married and plan to file a joint return.  Your spouse will have to  sign the joint return papers, too).
• Valid Social Security cards for you, your spouse and ALL of your dependents.
• Birth dates and current addresses for you, your spouse and ALL of your dependents.

Locate all the financial earnings reports sent to you from your employers, banks, and investments. Some of the forms you may see include:

• Form W2 - the wage earnings statements from your employer(s)
• Form 1099 - earnings statements if you are a contractor or freelancer
• Form1042S - report of US income for a non-citizen
• Form W2G - a statement showing gambling winnings, if you had any
• Form 1098 - your mortgage interest earnings, if you are a homeowner
• Form 1098T or 1098E - if you have student loan interest or tuition expenses
• Various 1099 forms - including:
  • interest/dividend statements from bank accounts and investment accounts (like your pension, 401K, 403B, and 529s)
  • statements of monetary benefits from things like unemployment, previous tax refunds, or the sale of property

Bring a copy of last year’s federal and state returns, if you have them.
You can request copies of past returns from the IRS, but a general rule of thumb is to keep copies of all tax return paperwork for three years.

Bring your bank account numbers and your bank’s routing numbers. You’ll need these if you want to Direct Deposit your refund or if you want to pay your taxes electronically.

Have an idea of which tax credits you can claim. Most people know about the Child Tax Credit that saves you $1,000 for each dependent child.  But there are several tax credits that often are overlooked:

• The Earned Income Tax Credit can save you up to $4,824 in 2008
• The credit for childcare (or dependent care) expenses helps working families that rely on daycare. You’ll need to know total amounts paid for daycare provider and the daycare provider’s tax ID number or Social Security number. This credit ranges from 20% to 35% of qualifying expenses. It depends on your adjusted gross income (AGI), but can save you up to $2,100.
• The AMT credit is available if you paid the Alternative Minimum Tax last year.
• The Hope Credit and the Lifelong Learning Credit are available if you paid to send you, your spouse, or your kids to college.