Goodbye Holiday Season, Hello Tax Season
Unfortunately the tax season will be upon us before we know it. I will not dive deep into the specifics of filing taxes at this time, but wanted to provide a handy checklist of documents that you need in order to be prepared to file your taxes (regardless of if someone is doing it for you).
This is not an exhaustive list, but should cover the vast majority:
Employment and income
Gather W-2 forms (this will be mailed to you by January 31st) or other tax information documents for all income sources, including:
Gather W-2 forms (this will be mailed to you by January 31st) or other tax information documents for all income sources, including:
- Wages
- Proprietary business income
- Rental property income and expenses
- Partnerships, estates, or trusts from which you draw income
Investments
In January or early February, you should receive various 1099 forms for interest, dividends, retirement plan distributions, etc. from all banks, brokers, or fund companies where you had a bank account or money invested during the tax year.
Homeowner or rental information
Have an accurate list of all your residential addresses for the year, as well as any supporting documentation for the following events that may have occurred during the year:
Have an accurate list of all your residential addresses for the year, as well as any supporting documentation for the following events that may have occurred during the year:
- You paid interest on your home mortgage or second mortgage. Home mortgage interest may be your biggest deduction. Your lender will send you Form 1098 by the end of January.
- You paid real estate taxes.
- You moved. You may be able to deduct moving expenses.
- You received rental income.
- You sold your home or other property.
Deductions
You can take one of two paths when it comes to deductions:
You can take one of two paths when it comes to deductions:
- The standard deduction. No special documentation necessary.
- Itemized deductions. If you choose to itemize deductions, keep in mind that the required documentation and guidelines vary depending on the deduction. For details, refer to the appropriate publications on the IRS Web site.
Common itemized deductions include:
- Medical expenses
- Charitable contributions
- Non-reimbursed business expenses
- Non-business casualty or theft losses
- State and local taxes
Bank account information
If you’re lucky enough to receive a refund this year, you can get it more quickly by having it automatically deposited into your bank account. You’ll need the account number and routing number. You can find your nine-digit routing number in the lower left corner of your checks.
If you’re lucky enough to receive a refund this year, you can get it more quickly by having it automatically deposited into your bank account. You’ll need the account number and routing number. You can find your nine-digit routing number in the lower left corner of your checks.
Having the above information ready to go by mid-February makes doing your taxes much easier and I think that is something we can all appreciate. We’ll be following this up with options on ways to file your taxes in early February – start preparing!
