Which Documents You Should Save for Tax Season and Why!
It’s tax season again and you know what that means…lots of mail coming your way with documents that you’ll need in order to file your tax return this April. Whether you prefer to complete your taxes early, or wait until the very last minute, keeping track of the tax documents you receive is an important step. Many tax experts recommend making a file each year beginning in January. Throughout the year, you can put information you will need about potential deductions and new life events. Then when January and February rolls around and you begin receiving tax documents from your employer, mortgage lender or bank, all of your documents will be together. This small organizational move will make your life much easier when it comes time to diving in.
Here is a guide to the documents that you will need to save this year.
- New information: If your tax status has changed significantly over the last year, you should make sure that you have all the related documents ready. Examples include a social security document for a new baby, closing documents if you purchased a home, any home improvement invoices. This is also a good time to think about whether your filing has changed as the result of a recent marriage or divorce.
- Income information: One of the most important categories of information to keep track of for your annual tax return is information about your income. This may be simple if you work at a large company and receive a W-2 Form each year, but many Americans earn additional income and receive one or more 1099 Forms each year. Keep in mind that the IRS receives each and every 1099 you do, and if the report of your income does not match theirs, you may hear from them.
- Interest notices: You may receive documents from your bank about how much interest you accrued during the year, or from your mortgage company about how much interest you paid throughout the year. These are all documents that you will need when you begin the tax filing process.
- Charitable donations: When you donate money to a charity, try keeping the verification of that donation handy so that you can easily locate it once you are ready to complete your taxes. These donations can add up to sizable deductions and make a real difference on your tax return. If you keep track of these as you go throughout the year, you’ll save yourself time and energy during tax season.
- Additional deductions: Depending on what kind of work you do, you may also want to keep track of other possible deductions throughout the year including mileage, home office supplies, and even expenses related to a job search.
Prepare Now For Tax Time
As April 15th approaches, you may begin to worry about completing and submitting your tax return this year because of additional complexities or because you are concerned about completing your return correctly. If you’re concerned it may be worth hiring a trusted, full service tax firm for assistance. Success Tax Relief specializes in helping taxpayers all over the country complete their annual tax returns, and can provide additional services such as audit support and advice about settling an issue with back taxes. Now is a great time to contact our team at Success Tax Relief by phone at 877-958-6638 for more information.