With the end of the year fast approaching, it’s time to start preparing for tax season. By filing your returns early, you can relieve the stress and give yourself peace of mind. Not only will you avoid the last-minute rush, but you’ll also have more time to double-check your documents and ensure that you’ve claimed all the deductions and credits you’re entitled to. So don’t wait until the last minute – start getting organized now to make tax season a breeze.
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 matters more straightforward and less confusing for you.
Identification Details
Your accountant must possess the required documents necessary to verify your identity. Your social security card must be provided, and you must know your family member’s social security numbers.
To claim dependents on your tax returns, you must provide social security numbers along with your family’s date of birth and full names. There is a necessity for these details to be accurate so that the IRS accepts 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 specific information and deductions. You can also find any discrepancies in your previous year’s tax statement.
Salary Statements
If you work somewhere, you should get a tax statement Form W-2 from your employer. If you don’t 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’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 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 which outline 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
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 to save yourself from the hassle and headache.
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