It’s that time of year again: time to gather all of your important tax information in order to file. However, with W-2’s, receipts, checks, and more – it can all be confusing as to what to gather and how to do it. To help in your tax return preparation, we’ve collected the following checklist to help.
Tax Preparation Critical Information
This includes basic items like name, social security number, address, etc., but it also includes the information for all members of the family, spouses, and dependents. An often forgotten part of the critical information is birthdays, so be sure and have the correct month, day, and year.
Income Information
The most common type of form associated with income is the W-2, or what your employer or employers have filed with the IRS which includes how much you were paid and how much was taken out for taxes. Other common types of income:
- Investment income – usually in the form of a 1099
- Alimony and/or child support
- Social Security payments – usually from form SS-1099
- IRA and/or pension distributions – usually in forms 1099-R and 8606
- Rental or investment property income
- Income from the sale of a property or properties – form 1099-C
- Home office, home business, and self-employed income
Income Adjustments
Use this information to adjust the total amount of income earned in order to reduce your tax burden or increase your refund.
- Retirement contributions to an IRA
- Health insurance payments for the self employed
- Energy credits (for the purchase and/or installation of energy efficient items in the home)
- Interest on student loan payments
- Moving expenses
Tax Credits
Use these tax laws and breaks to write off the total amount of taxes you may owe or increase the amount of your refund.
- Earned Income Credit
- Advance Child Tax Credit and any other costs associated with child care
- Home mortgage interest
- Expenses associated with adoption
- Health Coverage Tax Credit
- Saver’s Credit
- Tons of other credits and deductions as listed by the IRS here
Tax Preparation Deductions
Save all of those receipts, bank statements, cancelled checks, and more to take advantage of these deductions.
- Charitable contributions in the form of cash
- Charitable contributions in the form of donated goods
- Mileage on your car used for business
- Mileage on your car used for medical or charitable purposes
- Any expenses associated with your work (office supplies, technology, books)
- Any expenses associated with traveling for work
- Business use of home
- Any of the itemized deductions listed here
Forms and Publications
Visit the IRS website to get the most popular forms (1040, 1040A, 1040EZ) and just about every form you can think of from Form 1099 to Form 14654.
And if you are in need of tax return preparation services in Houston, please click here to contact us.