Ready to get your taxes done? It’s a good time to start thinking about it. If you’re thinking about taxes, here’s a paperwork checklist to get you set for filing.
- Bank Account Statements. Collect all your banking statements, including checking, savings, mortgage, and loan information.
- Previous Year Tax Returns. If you’re using tax software, having last year’s federal and state tax returns uploaded can save you lots of time.
- Social Security Number. Most people have this number memorized, but if not, have this ready to go. You’ll also need the numbers of your kids and any other dependents.
- W-2 Forms. This is a form provided by your employer. It should arrive by the end of January.
- 1099 Forms. If you had additional income, you may also receive a 1099. This should arrive by the end of February.
Deductions make filing taxes a little bit more enjoyable because they lower your bill. Here are some of the more common deductions:
- Charitable Donations. Always keep receipts from any charitable donations. The IRS could deny your deduction if you don’t have proof.
- Medical Expenses. If you incurred a large amount of medical expenses (for most taxpayers, more than seven percent of your gross income) you can sometimes deduct them.
- Retirement Account Contributions. You can deduct the contributions to a traditional IRA.
Do One Thing: Take some time to gather all of the tax documents needed for filing well before you file. This will save you time and stress.
This is intended for educational purposes only, and is not considered tax or financial advice. Consult a financial advisor and/or tax advisor with questions specific to your tax and financial situation.
-Reporting by Chris O’Shea for SavvyMoney