6 Things your Accountant will need in order to Prepare your Tax Return

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The end of the year is always marked by thinking about your taxes. However, it should be understood that the earlier you file your returns, the less worries you’ll have related to the the tax deadline.

You might be wondering about the necessary documents related to the filing process. The more information you provide to your accountant, the more streamlined the process of filing will be. There are certain documents that you need to have. Here is a list of them to make matters easier and less confusing for you.

Identification Details

Your accountant must possess the required documents that are necessary for verification of your identity. Your social security card will need to be provided and there is a requirement to know the social security numbers of your family members.

In order for you to be able to claim dependents on your tax returns, you must provide social security numbers along with the date of birth and full names of your family. There is a necessity for these details to be accurate so that the IRS doesn’t reject your application. Statistically speaking, hundreds of thousands of applications are sent back because the names and social security numbers don’t match. To make everything smoother, you can include a secondary form of identity verification such as a driver’s license or any other form of state-issued photo ID.

Most Recent Tax Return

You will need a copy of your most recent tax return. If you are working with a new accountant, this will help them better understand certain information and deductions. You can also find any discrepancies that might exist in your previous year’s tax statement.

Salary Statements

You should get a tax statement Form W-2 from your employer if you are currently working somewhere. If you don’t’ get this form before January 31, you should consult your employer to avoid any complications. Contractors and freelancers are entitled to receive Form 1099-MISC from the clients they have worked for. You should bring all such forms to your accountant so that they may include this information in the returns they file.

 Any Other Statements That Highlight Income

If you’ve accrued any other additional income during the year, you should bring this information to your accountant. Interests you get from fixed deposits, dividends from investments and welfare income are all a part of your additional income. It is recommended that you bring all of this information to your accountant for completing the details for the returns. You can also consult your tax preparer to know which information is relevant for filing.

Property Details

You can become eligible for a lot of tax deductions in regards to the real estate you own. It is recommended that you provide all information and documents to your accountant which outline the properties you own. These include the proof of paid real estate and mortgage, personal property taxes, home purchases and the interest paid on home equity loans. All of this information is relevant when it comes to filing returns.

Expenses

You may have no idea what kind of expense information will be relevant to your tax returns. It is always a good idea to save your receipts and invoices. Other proof of expenses such as charitable donations, education expenses, medical bills, IRA contributions and expenses incurred while finding a job and so much more can make a huge difference. The more expense information you provide to your accountant the better.

Come Prepared

It can get confusing when it comes to filing your returns. The process can get very frustrating. It is better to have an accountant handle your tax returns, especially if you have many avenues of revenue and expenses. Take this information to an experienced professional and you’ll be able to save yourself from the hassle and headache.

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