The Documents Needed For Preparing Your Taxes
Not every taxpayer requires the same documents to file their yearly tax return. It depends on various factors such as whether you are a homeowner, whether you do business in your home or in rented space, whether you work for someone and require a W2 form, or whether you need to provide a 1099. The tax law changes every year. Therefore, it is best for you to have a certified accountant prepare your taxes. If not, you may be leaving money on the table.
Information on the tax return
Every year, all taxpayers in the United States must have their tax return completed and returned to the Internal Revenue Service (IRS). It can be done by hand, with special software, or online.
What documents are needed?
Good preparation and organization make filing your tax return easier and faster. It is advisable before the start of the year or during the year in question to collect all the following documents and have them ready:
- W2
- 1099
- Bank statements
- Supporting documents for charity contributions, if any
- Proof of vehicle mileage
- Proof of loan payment, which might include mortgage interests and school loan interests
- Pension statement
- Business expenses
- Medical expenses
- Educational training
For homeowners, all documents relating to property taxes, interest on debts, invoices for maintenance and renovation works, operating and administrative expenses, etc are essential for the right deductions. Carefully examine all your documents.
Supporting Documents
Be sure to directly submit supporting documents explicitly requested for your tax return. The other supporting documents must be kept ready in case the tax authority requests them at a later date. If you are a spouse filing jointly, the tax return status should be joint filing. For singles, it is a single filing.
Filing Deadline
Do not wait until the last minute to send the tax return – the sooner it is sent, the sooner the final tax amount will arrive. In any event, there is a filing deadline of April 15. If you are going to be late, you can have your tax preparer file an extension for you, which is usually August.
The Deductions
Tax laws allow for different types of deductions. Deductions and related amounts differ from one person to the other person. Your tax preparer will inform you of the kinds of expenses that can be deducted. However, expenses for earning income (expenses that are used to earn income, such as transport costs from home to the workplace, additional expenses for food, etc.) could be included. General deductions such as social security contributions, contributions to health insurance and life insurance, childcare expenses, the deduction for child custody by third parties, donations to non-profit institutions as well as interest on debts are important to share with your tax preparer. If you feel overwhelmed about taxes, it may be a smart idea to search for tax preparation services.
