Save yourself from the hassle when it comes time to file your 2017 taxes by taking some easy steps throughout the year. Here are five ways you can start preparing for next year right now.
1. Gather All Your Financial Documents
Here are some of the most common forms:
Form W-2 if you have a job
Form SSA-1099 if you received Social Security benefits
Various 1099s to report income such as cancellation of debt (1099-C), dividends (1099-D), interest (1099-INT), and non-employee compensation paid to independent contractors (1099-MISC).
New Form 1095-A to report information from the government Marketplace from which you purchased health coverage
Various 1098s reporting mortgage interest (1098), student loan interest (1098-E) and tuition payments (1098-T)
2. Gather Your Receipts Together
Which ones you need depends on whether you choose to itemize your personal deductions instead of claiming the standard deduction. You can choose to itemize if this produces the greater write-off. Unfortunately, the only way to know for sure is to determine the amount of your itemized deductions and compare them with your standard deduction amount.
Receipts- Gas, food, etc
Property Tax Bills
State & Local Estimate Tax Payments
Record of Charitable Donations
Receipts from medical expenses, child care, tuition expenses, employee business expenses
3. Create A List Of Personal Information
This information tells the IRS exactly who’s filing, who is covered in your tax return, and where to deposit your tax refund.
Valid Driver’s License or ID cards for all individuals over 17
Social Security numbers & dates of Birth for you, your spouse, your dependents
Copies of last year’s tax return for you and your spouse (helpful, but not required)
Bank account number and routing number, if depositing your refund directly into your account
School records showing your address for all dependents to show they live at your resident
Childcare records (including the providers tax ID number) if applicable
4. Schedule An Appointment
The sooner you meet with your Tax Preparer, the sooner you can begin the process. It is especially important to act promptly if you anticipate a refund so you can receive your money promptly.