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How to Prepare for Your Tax Appointment in 2015

February 4, 2015

Whether you’re getting ready to file your taxes, planning on taking them to your CPA, or want to organize your papers from past filings, there are a few documents that you need to have and keep handy.

 

Here are some of the items that you should keep with your tax returns, or prepare for future tax returns: 

 

W-2

Your W-2 informational return lets you know what you made at work and what you paid in taxes. You’ll need it to file your taxes and to get a mortgage.

 

1099 Forms

Whenever you get money that doesn’t come from an employer, you should get a 1099 form. As with W-2s, it’s important to save these and report them on your tax return. The IRS has computer-based matching that lines your return up against your 1099 forms, so forgetting one could trigger an audit.

 

1098 Form

Sent by your mortgage lender, it states how much you can write off in interest and points.

 

Tax Bills

Whether you get them from the state for your car, the county for your property, or someone else, hold on to your tax bills, since they could be deductible.

 

House Records

When you go to sell your house, you’ll be able to use your entire cost, which includes all of your improvements, to offset your sale proceeds. As such, holding onto receipts will help to reduce your tax liability.

 

Investment Statements

While year end statements are usually adequate, you’ll need to be able to establish the cost of any stocks or bonds that you bought. If you have dividend reinvestment plans, this could require quarterly statements.

 

Charitable Donation Receipts

When you give to a charity, get a receipt and save it. Even small donations technically need receipts.

 

Supporting Deduction Receipts

Anything that you write off needs to be substantiated with a receipt. Furthermore, you should be able to establish why that expense was deductible, so writing notes on the receipts can be a good idea, too.

 

Mileage Log

When you deduct miles for moving, medical, charitable or business purposes, the IRS want to see the dates of the trips and the corresponding odometer readings. Keeping a log is wise.

 

There’s a lot of to get organized to both file your taxes and keep your records ready for any IRS scrutiny.

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How long to keep income tax returns and related records

September 29, 2017

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