The end of the year is always marked by thinking about taxes. The earlier you file your returns, the fewer worries you’ll 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. Certain documents are necessary. Here is a list of them to make matters easier and less confusing.
Identification Details
Your accountant must possess the required documents to verify your identity. You will need to provide your social security card. The social security numbers of your family members are also required.
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. These details must be accurate so that the IRS will accept your application. Statistically speaking, hundreds of thousands of applications get 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 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 in your previous year’s tax statement.
Salary Statements
If you are currently working, you should get a tax statement Form W-2 from your employer. 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 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’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. You should bring all of 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 outlining your properties to your accountant. 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 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, IRA contributions, 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
Filing your returns can be confusing and 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 to save yourself from the hassle and headache.
Conclusion
In conclusion, as the year ends, it’s crucial to consider taxes, and filing your returns early can alleviate the stress of looming deadlines. Providing comprehensive documentation to your accountant is vital to streamlining the process. Ensuring you have essential documents like identification details, recent tax returns, salary statements, additional income statements, property details, and expense records can facilitate accurate and efficient tax filing.
By coming prepared with the necessary information, you can navigate the filing process smoothly and avoid unnecessary complications. Trusting an experienced professional to handle your tax returns can provide peace of mind and save you from the frustration of managing complex financial matters independently.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.