(AP) – April 15 is coming. If you haven’t started your taxes, you might want to. Here are some helpful tips as you drag out the paperwork and wade in.

FREE ELECTRONIC FILING OPTIONS
The IRS continues to expand its free file program, which provides electronic federal income tax return options.

There are two formats available that you should know about. The first is the traditional free file program. This is free tax preparation and electronic filing for eligible taxpayers. It is provided through a partnership between the IRS and a group of about 20 private software companies. This applies to about 70 percent of the nation's taxpayers.

For higher income filers, there are the free file fillable forms, an electronic equivalent of traditional paper forms.

The benefit of using either system is that eligible electronic filers can get a refund in as few as 10 days through direct deposit.

OVERLOOKED DEDUCTIONS
If you bought something in a store, only to be told afterward that you paid too much, most of us would feel like we wasted our money. Similarly, some folks forget about certain deductions come time to file our income tax returns.

In its tax guide this year, the accounting firm Ernst & Young lists the 50 most overlooked deductions. And that provides us with an opportunity to survey our own financial landscape to see if there's an area where we could keep from overpaying on taxes.

They include one area that is particularly related to taxes that could be easy to forget. That's accounting fees you pay for tax preparation or representation during an IRS audit. Other deductions to consider: employee moving expenses, dues paid to labor unions and long-term care premiums.

ENERGY EFFICIENCY
It is easy being green, if you want to save on your taxes.

You can claim a tax credit for energy-efficient windows, doors, air conditioners and furnaces for both 2009 and 2010. In fact, after disappearing in 2008, the tax credit has been reinstated and is worth even more now than before.

Homeowners who made such improvements are eligible for a tax credit equal to 30 percent of the cost of these improvements, up to a maximum credit of $1,500 for 2009 and 2010 combined. You will need form 5695, residential energy credits when you file your return.

And as an added benefit, there are no longer income limits for the energy credits. Limits for individual items, such as windows, no longer apply.

HYBRID HELP
There is a growing number of ways to save on your taxes, while also helping the environment. The options have grown as concern about the plight of the planet has multiplied.

One area popular among consumers has been tax credits for purchases of certain hybrid or alternative energy vehicles. The idea is intended to encourage purchases of greener cars and trucks.

Here's one party you don't want to be late to. That's because the credit, or tax advantage, begins to phase out after the manufacturer sells 60,000 hybrids for the year.

For the 2009 model vehicles, hybrids still eligible for the credit are Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Mazda, Mercury and Saturn.

And don't forget plug-in electric vehicles. Credits for those, depending on the kind of vehicle involved, range from $2,500 to $15,000.

EDUCATION TAX CREDITS WIDEN
Whether you are a college student, or the parent of one, you have an opportunity to get credit, a tax credit that is, for education costs.

Congress passed the American Opportunity Credit as a temporary two-year expansion of the hope credit. It applies to 2009 and 2010. The maximum annual credit of $2,500 is available to students during the first four years of their post-secondary education, and is an improvement from what was available under the previous program, the Hope Credit.

Congress put the new temporary credit in place as it passed legislation to get the economy back on its feet.

To qualify for the maximum credit, the student must spend $4,000 on certain expenses, including tuition and fees. It begins phasing out for individuals with modified adjusted gross income of more than $80,000, or $160,000 for married couples filing jointly.

NEW FILING LOCATIONS
Most of us are creatures of habit, at least to some degree. So, when there's a change, it runs the risk of tripping us up at tax time.

The IRS has changed the destinations where some taxpayers need to send their paper income tax returns.

For taxpayers in Maryland, Maine, New Hampshire, Vermont, Virginia and the District of Columbia, the destination for returns is now the IRS facility in Kansas City, Mo.

And those in Indiana and Michigan are to send their returns to Fresno, Calif. Austin, Texas is the destination for Alabama filers.

Taxpayers filing electronically won't have to worry about the changes.

COSMETIC SURGERY AND SEX CHANGE
Even in a tough economy, some people choose to pay for cosmetic surgery. While many medical expenses are deductible, those involving unnecessary cosmetic surgery are not. However, if the procedure is related to an accident, injury or birth defect, that's a different story.

Along these lines, the U.S. tax court recently ruled that a person who was born a man should be allowed to deduct the costs associated with sex change surgery.

That was over the objection of the IRS, which held that the process was cosmetic and not medically necessary.

The agency had rejected a $5,000 deduction for about $25,000 in medical expenses.

The group representing Rhiannon O'Donnabhain says the decision could potentially affect thousands of people a year who have similar operations.

DEDUCTION OF MILEAGE
If you itemize your deductions come tax filing time, there are a variety of areas to consider involving use of your car.

For 2009, the standard mileage rate for operating your car for business is 55 cents a mile. And if you don't use the standard mileage rate, you might be able to deduct the actual expenses you paid. This could include the cost of gasoline, oil and repairs, tires and depreciation. It might be worth your time to figure the deduction both ways and use the one that saves you the most money.

If you had to drive for medical appointments, or had a deductible move, the rate is 24 cents for the current filing season.

And another option is use of your vehicle for charitable efforts. That rate is a bit lower, at 14 cents a mile.

EASY ERRORS WORTH CATCHING
Sometimes it just takes a couple of minutes to double-check your tax forms to avoid a simple mistake. That is certainly advised if you are using paper forms, without the benefit of a computer to help keep things right.

One reason to avoid such errors is that they can delay the processing of a refund that you are owed.

The Ernst and Young tax guide says some errors are mathematical. Others are errors of omission, like forgetting to include your social security number or those of dependents.

Double check to see if you have chosen the correct filing status, such as head of household or surviving spouse, versus single. Another simple one to watch out for: remember to sign your return.

KEEP COPIES
If you need a copy of one of your old tax returns, the best option is pulling it out of your own filing cabinet. If you need a copy from the IRS, it is going to cost you.

Form 4506 is needed for such a request. And you'll have to pay $57 for each tax year requested. Copies are generally available going back about six years.

A cheaper option involves a so-called transcript. It is a computer print-out of your return information, not a copy of the actual return. They are provided free of charge from the IRS and are generally available for the current and past three years.

You can ask for a free tax transcript from the IRS by calling its toll-free number.

THINKING AHEAD
While your head may be stuck in 2009 as you prepare your tax returns ahead of the looming deadline, now is the time to think about planning to save where you can for 2010.

That includes use of some of the tax credits and deductions put in place that will continue.

If you are a first-time homebuyer, the maximum credit of $8,000 or $6,500 for long-time homeowners buying a new primary residence doesn't expire until the end of April.

It isn't too late to use the American Opportunity Credit for college expenses. The expanded credit of up to $2,500 a year can be used by eligible students in the first four years of college.

And there's a big change covering Roth Individual Retirement Accounts. Beginning this year, savers can convert traditional IRSs to Roth IRAs, regardless of how much money they earn.

AMT WORRIES FOR 2010
It's an annual tax-related ritual in Washington that always seems to go down to the wire: giving relief from the AMT trap.

The Alternative Minimum Tax was conceived, we're told, to ensure that the wealthy didn't escape paying taxes by using loopholes.

Over the years, it has not been sufficiently adjusted for inflation and that means a risk of costing people with moderate incomes.

Congress has not put a so-called AMT patch in place for 2010, meaning that it could be a problem filing taxes next year.

Unless Congress acts, the exemption would drop to nearly $34,000 for individuals and $45,000 for married couples filing jointly.

Congress does have the entire year to act. And many taxpayers will be hoping that it does intervene before the end of the year.

TAX GUIDES
If you are the kind of person who wants to read or use a hard, printed copy of an income tax guide, there are several options to consider. Ernst and Young's version weighs in at more than 800 pages. The one available for the current filing season is the 25th anniversary edition.

Another popular large paperback is the J.K. Lasser Guide called “Your Income Tax.” It also is 800 pages plus.

Both include copies of commonly needed tax forms. Both cost about $20.

Perhaps the best option of all is the guide supplied for free by the IRS. Publication 17 is available for free download from IRS.gov. You can also ask to have a printed copy mailed to you, all 306 pages.

DIRECT DEPOSIT FOR REFUNDS
There is a kind of joy opening an envelope from the U.S. Treasury that includes an income tax refund. But direct deposit is really the way to go if you have a refund coming to you.

One reason is that the check won't get lost in the mail. The IRS said it had more than 100,000 refund checks returned by the Postal Service last year because of mailing address errors.

And the average value of those checks was more than $1,100. Direct deposit is available as an option whether you are filing a paper or electronic return. And it's free.

If you need to update your address to make sure a mailed check does find you, look for the “Where's My Refund” link at irs.gov.

SAVING YOUR REFUND
There's a new option for using a federal income tax refund you have coming, for purchase of U.S. Savings Bonds.

For the first time, taxpayers can ask that a portion of the refund be used to buy up to $5,000 in Treasury I bonds, favored by investors because they earn interest and serve as a hedge against inflation. You split the refund for bond purchases, with the remainder going into your bank account as in the past.

On Form 8888, instead of listing an account number for direct deposit, enter the word “bonds.” The bond request must be a multiple of $50. If the refund is less than $5,000 and is an exact multiple of $50, you can skip using the form and enter the request for bond purchases on the tax return.

Once the request is processed, the savings bonds will be sent to you in the mail.
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