The end of the year is always marked by the impending task of reviewing and filing your taxes. The earlier you file your returns, the fewer worries you will have related to 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 process of filing will be. There are certain documents that you need to have. Here is a list of them to make filing your taxes easier and less confusing for you.
Your accountant must possess the required documents that are necessary for verification of your identity. Your social security card will need to be provided. There is a requirement to know the social security numbers of your family members.
To claim dependents on your tax returns, you must provide social security numbers along with the date of birth and full names of each family member. There is a necessity for these details to be accurate so that the Internal Revenue Service (IRS) does not reject your application. Statistically speaking, hundreds of thousands of applications get sent back because the names and social security numbers do not 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 that might exist in your previous year’s tax statement.
You should get a tax statement Form W-2 from your employer if you are currently working somewhere. If you do not 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 have accrued any other additional income during the year, you should bring this information to your accountant as well. Interests you get from fixed deposits, dividends from investments, and welfare income are all a part of your additional income. You should bring all 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.
You can become eligible for a lot of tax deductions in regard to the real estate you own. You should provide all information and documents to your accountant, which outlines your properties. These include the proof of paid real estate and mortgage, personal property taxes, home purchases, and the interest paid on home equity loans. All this information is relevant when it comes to filing returns.
You may have no idea what kind of 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, Individual Retirement Account (IRA) contributions, and expenses incurred while finding a job, and so much more can make a significant difference on your filing and potential return. The more expense information you provide to your accountant, the better.
It can get confusing when it comes to filing your tax return, and the process can become increasingly 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, and you will be able to save yourself from the hassle and headache.
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