Tax season has already begun in the United States, with many individuals filing early. If you have not begun to do so already, now is the time to prepare. To do so, begin with gathering all of the documents and information required per your employment status, state requirements and federal statutes.
Being prepared before you sit down with your accountant or with a tax-prep software tool will definitely keep the process moving at a fast, yet comfortable, pace.
Core documents
The Internal Revenue Service (IRS), the nation's tax collection agency, states that consumers will need to have a range of information available while they are filing their taxes. This includes your Social Security number, as well as those of your spouse and dependents. From there, you will also need any W-2 and 1099 forms, investment income information, refund figures for both local and state that you received last year, unemployment income and rental property income. Additionally, you will need miscellaneous income forms for circumstances such as: you won the lottery, participated in jury duty, or got payouts from a medical savings account.
If you have a spouse, you will also need all of his or her forms in these categories. From there, the IRS points out, you will need to have other information ready in case you plan to claim income adjustments, credits and deductions. These could include student loan interest, mortgage interest, homebuyer tax credits, moving expenses and medical savings account activity.
You will want to know the full spectrum of your business, medical, job and moving expenses, as well as all costs associated with education, childcare, adoption and charity. The IRS requires proof to back up the numbers to get the full range of credits and deductions. If you plan to receive your tax refund through a direct deposit, the IRS notes you should have your bank account and routing numbers ready.
Special note to homeowners
Homeowners have a greater diversity of options when it comes to getting the most deductions and credits when compared to renters. Realtor.com, a website dedicated to buying and selling homes, explains that homeowners should have the following information ready when completing their taxes:
The sooner you begin organizing all of the necessary papers, the more time you’ve allowed yourself to sort out anything that might be missing. Good luck with the tax preparation, and we hope you get a great return!
Being prepared before you sit down with your accountant or with a tax-prep software tool will definitely keep the process moving at a fast, yet comfortable, pace.
Core documents
The Internal Revenue Service (IRS), the nation's tax collection agency, states that consumers will need to have a range of information available while they are filing their taxes. This includes your Social Security number, as well as those of your spouse and dependents. From there, you will also need any W-2 and 1099 forms, investment income information, refund figures for both local and state that you received last year, unemployment income and rental property income. Additionally, you will need miscellaneous income forms for circumstances such as: you won the lottery, participated in jury duty, or got payouts from a medical savings account.
If you have a spouse, you will also need all of his or her forms in these categories. From there, the IRS points out, you will need to have other information ready in case you plan to claim income adjustments, credits and deductions. These could include student loan interest, mortgage interest, homebuyer tax credits, moving expenses and medical savings account activity.
You will want to know the full spectrum of your business, medical, job and moving expenses, as well as all costs associated with education, childcare, adoption and charity. The IRS requires proof to back up the numbers to get the full range of credits and deductions. If you plan to receive your tax refund through a direct deposit, the IRS notes you should have your bank account and routing numbers ready.
Special note to homeowners
Homeowners have a greater diversity of options when it comes to getting the most deductions and credits when compared to renters. Realtor.com, a website dedicated to buying and selling homes, explains that homeowners should have the following information ready when completing their taxes:
- Any and all data related to mortgage interest paid.
- Receipts for all home improvements related to eco-friendly upgrades.
- If you had a debt forgiven, you must report it to the IRS.
- If you work out of a home office.
The sooner you begin organizing all of the necessary papers, the more time you’ve allowed yourself to sort out anything that might be missing. Good luck with the tax preparation, and we hope you get a great return!
