5 Types of Documents It’s a Good Idea to Have Saved When the Tax Season Comes
Tuesday, April 9, 2019, 6:00 PM | Leave Comment
“Nothing is certain in life but death and taxes.”
It isn’t the most glamorous of tasks but settling your account with the tax authorities each year is one of the few annual certainties. Knowing what documents you should have ready can save you time and make the process no more arduous than it has to be.
To make it as straightforward as possible, local tax professionals can quickly and effectively handle your taxes and ensure your annual tax bill is as low as possible. Contact your local tax professional for more information on the services they offer.
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Statements from January and February
The deadline for filing your tax returns is April 15, however, many of the essential documents you will need to complete your returns will get to you earlier, often in January and February. Keep an eye on your mail and email inbox for information regarding W-2s and 1099s.
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The 1040 Tax Form
In 2018, the IRS introduced the new 1040 tax form. It made it far simpler to use than the 1040A and 1040EZ that some people had to use before. Now there are just 23 lines, making it shorter than the previous 1040 and 1040A forms.
Note that if you are filing electronically, you will not need to obtain this paper form.
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Records of Any Donations, Winnings and Health Expenses
Some charitable donations and health expenses are tax deductible. Keeping records of these and finding the expense, the number of the check or payment, the name of the payee, the amount of the expense or donation and the date the transaction took place will help save time when tax season rolls around.
A handy way to keep track of these items is to make a spreadsheet. That way, when tax season arrives, you have all the information in one easy-to-find location.
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1098 Forms
Your tax form 1098 should have most major deductions listed. These might include mortgage or loan repayments, educational payments to colleges and universities and paid interest on student loans. To reap the benefits of these deductions, you will need to input the numbers on any 1098, 1098-T or 1098-E forms.
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Homeowner Paperwork and Childcare Spending
If you have recently bought a new home, you will need all of the paperwork to complete your tax returns. This includes any closing documents, invoices for home improvement expenses, as well as proof of payment, and your annual mortgage statement.
Some of your spending on your children is tax deductible. Any childcare payments you may have made should be included in your tax returns, as should any contributions to college savings plans for the little ones.
Armed with all of these documents, sitting down to complete your tax returns shouldn’t be a long, drawn-out ordeal. It will be as simple and quick a process as possible. If you are still overwhelmed and think you need professional help with your filing, do not hesitate to contact a tax professional who can assist you with your tax returns and ensure you don’t end up giving the government a cent more than you have to.
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