Be sure to shred all documents containing personal information, such as your Social Security number, home address, and birth date.
Spend a little extra and get a cross-cut shredder, says Schneider. That is because a straight-cut shredder is still tempting for thieves - they can take the shreds out of the garbage and piece them back together. If you use a professional preparer, make sure he or she cross-cut shreds documents, too.
"I shred with a professional company," says Schneider. "A truck comes and they do it right in front of me."
2. Follow the two Es
File early and file electronically.
"If you can beat the fraudster, they can't file on your behalf," says Jason Witty, chief information security officer for U.S. Bancorp.
A 2011 audit found that the IRS paid out $5.2 billion in refunds to scammers in 2011, even as it blocked about $6.5 million from getting into the wrong hands.
Filing electronically can help keep your financial information secure by making sure a paper document with your Social Security number, address, salary and bank account information does not get diverted through the mail.
At tax preparer Jackson Hewitt, about 80 percent of customers now use e-file, says chief tax officer Mark Steber. "The days of old where you used the post office, that's not efficient," Steber says.
3. Get smarter about phishing