Best Tools To Keep Your Taxes In Check All Year Around
Tax planning is one of the most important things that you can do all year, so that once April 15th rolls around, filing your annual income taxes will be easy, fast and even put you at a lower risk for an audit.
Record Keeping: This is probably the most important tool for staying on top of your taxes all year round. It is critical to keep your most current tax return easily accessible in case you need it for anything. The IRS recommends that you keep all tax documentation a minimum of 3 years. Most experienced tax companies like Success Tax Relief actually recommend that you keep all documentation for 7 years after the return is filed. It is also very helpful to keep your records in order by date and by category.
Important documents to keep include:
● Record of any/all tips earned
● Documentation/receipt of big ticket items purchased or sold during the year (eg. home, property or vehicle)
● Bank Statements
● Records of any investments
● Records of Retirement contributions
● Receipts for deductible items. Keep these in a file or envelope all year so that when you are ready to complete your taxes, it is all there ready for you.
● Insurance and medical claims – keep documentation of all medical expenses
● Documentation of any items given to charity
● Gambling Records (if applicable)
● Theft or loss documentation (if applicable)
● Self employment records (if applicable)
Note: The IRS recommends having original copies of this documentation, however it may also be helpful to keep electronic PDF files of this information as back-up.
Once January 1st arrives each year, you should make sure all of your records are organized and begin collecting all tax documentation (electronically and/or by mail). Your employer(s) will send your W-2s, you will receive 1099s for all general taxable income and retirement income that you and/or your spouse received in the calendar year. If you are missing any routine documentation, do not assume that it does not exist or the IRS will not be aware of this…your income IS reported to the IRS, so your best bet is to request the 1099 up front so that you can include it with your tax return. You can file your taxes anytime between January 1 and April 15th of a given year. If you are receiving a refund, you will have your money faster if you e-file. Typically, the IRS issues tax refunds within 21 days of receiving your tax return and you can check the status of your refund online at //www.irs.gov by clicking on the Where’s My Refund? tab.
Success Tax Relief is a full service tax resolution firm, providing our clients with professional support for resolving a wide variety of tax problems. If you are looking for help with ongoing tax preparation or would like help submitting back taxes or with an audit, give us a call today. Our trained tax specialists can get started immediately and relieve you of the heavy burden that these tax problems can cause in your life. Call 1-877-825-1179 for more information or to speak with one of our experienced tax specialists.