It seems like 2 months is a long time but the
tax deadline will be here before we are ready! By now, tax documentation from a variety of sources should be filling mailboxes across the country. Some taxpayers may already have all the information they need to get busy filling out the returns. Especially for taxpayers that are expecting refunds, now is a great time to get everything filed and get that money on its way back to you! Before that can happen, though, you need to make sure you have all the paperwork, receipts, forms and documents you are supposed to have to complete your
return. Go ahead, open those envelopes with the TAX DOCUMENTS ENCLOSED label and see what's inside. Then, you'll know exactly which documents you are waiting for.
FORMS:
Tax forms are readily available from the
Internal Revenue Service. Printed copies are available at
U.S. Post Offices and forms can be downloaded directly from the IRS at their
Forms & Publications web site. If you do not know which form(s) you need, there is information on the IRS site to help you determine which form(s) apply to you.
If you have your taxes prepared by someone else, they should be able to provide you with the appropriate forms.
SUPPORTING DOCUMENTATION:
In order to prove that you qualify for specific tax deductions and credits, you need to be able to show proof of eligibility for the credits/deductions you are claiming. Documentation needs to be very specific including dates, locations, store names, addresses, item descriptions and prices. Some documentation will be provided for you while you will be responsible for recording and keeping some records yourself.
Income:
- W-2 Forms, 1099 Forms
- proof of alimony
- Proof of dividend and interest income
- Statements of income from retirement accounts
- Profit statements from any and all business ventures
- Rental Property income
- Self-employment income
Deductions/Credits:
It may be necessary to get more specific information about specific deductions to determine whether or not you qualify to claim them. Professional tax preparers can advise you about eligibility for your specific circumstances. If you prepare your taxes yourself, you can get detailed information about deductions at the
IRS web site.
- Medical Expenses
- Childcare Expenses
- Charitable Gifts/Donations
- Real Estate Records
- Student Loan Documentation
- Miscellaneous Receipts (motor vehicle registrations, safe deposit box rental expenses, previous year tax preparation fees, etc.)
- Professional Expenses (license renewals, CE expenses, travel/mileage expenses, etc.)
Previous Tax Returns - At a minimum, you should have the tax return from the previous year as a reference. You may need to use some of the information included in the previous year's return to complete the current return. You should keep all tax returns for a minimum of 7 years after they are filed, just in case.
CORRESPONDENCE:
If, for any reason, you have sent or received correspondence to or from the IRS, keep it and have it available when you prepare your return. Even if it does not make sense to you, it may be very important information for the person that is filling out your tax return!
When you have the right information, preparing and filing taxes is not a burden to dread each year. Spend some time gathering the documentation you will need to have a complete
return. If it helps, make a checklist of all the documents you need to keep track of what still needs to be gathered. Go on. What are you waiting for?
