Tax Day Prep - File Your Taxes

Tax filing can be complicated. Here is a list of everything you need to file your taxes on your own, or what you need to give to your accountant.

Tax Day has been extended until May 17 this year, so if you haven’t filed your taxes yet, there’s still time. For some, filing taxes is as easy as uploading their W2 into an online service like TurboTax; however, for others, it’s not that simple. And, generally, the older you are, the more complicated filing taxes become. This is usually due to either having retired, investing in a diverse portfolio, buying real estate, and other tax-liable decisions that were made throughout the year.

Here’s a list of what you should gather if you are filing taxes yourself or using your accountant.

Personal information

You’ll need to make sure that you have up-to-date personal information before you file.

1. Find last year’s tax returns so that you can remember what you filed last year.
2. Social security numbers for yourself, your spouse, and any other dependents. In order to file taxes, you must have the social security numbers of your dependents.

Income information, like W-2 forms

After you’ve gathered the personal info you need, next comes your income information. These are typically either W-2 forms or 1099 forms.

1. W-2 forms are issued by your employer and must be done by January 31. Typically, employers will send both physical copies of the forms, as well as a way to access them online.
2. 10-99 forms are for contract workers and can make taxes complicated. Generally, taxes aren’t taken out for contract work, so it’s important to set aside a portion of each contract paycheck aside so that you are prepared to pay back the IRS for any back taxes owed.

Understand your deductions and how to claim them

Deductions can be confusing, but they essentially help to reduce your tax bill by reducing your taxable income. When it comes to deductions, documentation is everything. Common deductions include:

• Retirement account contributions like your traditional IRA.
• Educational expenses like tuitions and fees.
• Medical bills.
• Property taxes and mortgage interest (PMI).
• Charitable donations.
• State and local taxes.

Tax credits and the necessary documentation

Tax credits are cuts in tax payments you owe. Proper documentation is necessary for claiming tax credits. Some common tax credits include:

• Child tax credit
• Retirement savings contribution credit
• American Opportunity and Lifetime Learning credits.

Tax Day preparation bottomline

Filing taxes can be complicated, so many choose to use an accountant or CPA to ensure that they are done right. Regardless of if you are filing your taxes yourself or using an outside source, make sure you have the proper documentation of everything listed above to ensure a smooth tax filing process.

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