Whether filing your own taxes or using a tax professional, you need certain pieces of information to accurately complete the tax forms. For example, you need to provide copies of certain documents related to your home and employment for verification purposes. Gather all of the paperwork and documentation necessary before you get your taxes prepared to save time and simplify the process.
All employers will send you W-2 forms for the tax year to file taxes. A 1099-MISC is another common form used to report income from miscellaneous sources. A 1099-G is a possibility to show income from a government entity. You also need income information on alimony, income tax refunds, prizes, lottery winnings and jury duty pay.
If you are a homeowner, you receive a deduction for the interest you paid on your mortgage during the tax year. Your mortgage company should send you a copy of Form 1098 to show what you paid. If you sold any real estate during the year, you need the information for the transaction. Bring information on any real estate taxes you paid. In some cases, moving expenses are deductible. This is usually the case when you move for a new job or to work at a new location within your company. Bring copies of your moving expense receipts if your move was job-related.
Documentation associated with assets gained during the year are necessary for filing taxes. You should receive a form documenting interest earned on various financial accounts, such as savings accounts. A 1099-DIV documents dividend income, while a 1099-B covers broker transaction assets. If you received a distribution from a retirement plan during the tax year, you will receive a 1099-R. Bring any of these forms with you to your tax appointment.
Liabilities & Expenses
Certain expenses may be tax-deductible, so you'll need to bring along documentation for loans and leases for business vehicles, car registration fees and student loan interest paid --- all of which are deductible general expenses. Expenses also include alimony, adoption expenses, costs associated with job hunting, education fees, child care costs and out-of-pocket work expenses that weren't reimbursed by your company.
If you are self-employed, you likely have more deductions for various expenses. You also need documentation of income for the business. If you contributed to an SEP account, bring information about your contributions. Your health insurance is also a possible deduction. Bring along all receipts for expenses related to your business.
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