Tax Time: 3 Things You Need To Give the Tax Preparer
January 13, 2015
Tax season is here and you’ve made your appointment to come in and get your taxes done. Great! Now it’s time to start gathering all the documentation you will need to have.
Having all the documents you need to prepare a complete and accurate return will make the process easier on you and your tax preparer, and more importantly, will help ensure that you are getting all the deductions you qualify for.
1. Proof of Income
The IRS wants to know about every penny you earned. And not just from your job, but also income from other sources such as hobbies, investments, Social Security benefits, gambling, sale of real estate, spousal support, and more. Make sure you bring all W-2s, K-1s, and 1099s, or other proof of income for each source.
2. Proof of Expenses
Who doesn’t love a good deduction! These shrink your tax liability, but you have to be able to back them up with documentation.
Here’s a partial list of expenses that you will need receipts or other proof in order to claim a deduction:
- Mortgage interest
- Job-hunting expenses
- Charitable contributions
- Self-employment expenses (home office, mileage, etc.)
- Medical expenses
- IRA contributions
- Certain state and local taxes
The tax code is chock full of provisions to address a vast array of items that affect our lives. These events can translate into deductions on your tax return or affect how you file your return.
Here are some questions to consider:
- Did you have a baby or adopt a child?
- Did you buy or sell a home?
- Did you get married or divorced?
- Were you a victim of a disaster, theft or other unexpected loss?
- Did you experience a death of your spouse?
- Have you obtained rental property?
- Have you received a windfall such as an inheritance?
- Did you hit the jackpot at the Hollywood Casino?
Remember, not all tax situations are the same. A tax expert can help you maximize your deductions, which will reduce your tax liability.