The end of the year is always marked by the impending task of reviewing and filing your taxes. The earlier you file your returns, the fewer worries you have about 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 filing process will be. There are certain documents that you need to have. Here is a list of them to make filing your taxes more accessible and less confusing for you.
Identification Details
Your accountant must possess the required documents necessary to verify your identity. Your social security card will need to be provided. You must know the social security numbers of your family members.
To claim dependents on your tax returns, you must provide social security numbers along with the date of birth and full names of each family member. There is a necessity for these details to be accurate so that the Internal Revenue Service (IRS) accepts your application. Statistically speaking, hundreds of thousands of applications get sent back because the names and social security numbers do not match. To make everything smoother, you can include a secondary form of identity verification, such as a driver’s license or any other 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 specific 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 do not get this form before January 31, consult your employer to avoid complications. Contractors and freelancers are entitled to receive Form 1099-MISC from the clients for which they have worked. You should bring all such forms to your accountant to include this information in the returns they file.
Any Other Statements That Highlight Income
If you have accrued any other additional income during the year, you should also 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. You should bring all this information to your accountant to complete 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 many tax deductions regarding your own real estate. You should provide all information and documents to your accountant, which outlines your properties. These include the proof of paid real estate and mortgage, personal property taxes, home purchases, and the interest paid on home equity loans. All this information is relevant when it comes to filing returns.
Expenses
You may not know what 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, Individual Retirement Account (IRA) contributions, expenses incurred while finding a job, and so much more can significantly impact your filing and potential return. The more expense information you provide to your accountant, the better.
Come Prepared
Filing your tax return can get confusing, and the process can become increasingly 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 will be able to save yourself from the hassle and headache.
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