Most adults don’t want to file taxes until the new year rolls around. You may not have all the information required to file a tax return if you are like most Americans.
Many people hire accountants and licensed professionals to file their taxes. Do you know which documents you need to submit? tax preparer? It’s not a problem, you’re not the only one. An analysis of over 1,000 taxpayers aged 22-62 revealed that 88% of them didn’t know how to submit a tax return.
The National Association of Enrolled Agents recommends that you use a checklist to organize your tax information before you visit a preparer. NAEA, a professional association of tax professionals licensed by the Department of Treasury means they are only qualified to handle tax matters and have unlimited representational rights in front of the IRS. They know what they are talking about.
Meet your preparer with these:
1. The tax return for last year. Last year’s tax return will include social security numbers, credit and deductions.
2. All W-2s of the past year. Your W-2 will tell you and your preparer what you earned and how much was withheld to pay state and federal taxes. A W-2 must be obtained from all of your jobs. The IRS can be contacted if employers have not sent W-2s to employees by January 31, 2017.
3. 1099 forms. The 1099 helps to keep track of extra income, earned interest and cancellation of debt. It also records dividends received as well as proceeds from broker transactions.
4. Receipts of donations. Even if you aren’t a big philanthropist you might be surprised at how many charitable donations you made during the year. Keep receipts for any breast cancer, marathon sponsorships, Salvation Army donations or holiday charities.
5. 1098 forms. A mortgage interest deduction should not be missed by homeowners, especially if it is the difference between owing money and getting a refund. You should also note that this form includes student loan interest as well as charitable contributions.
Locate a tax preparer licensed in your area www.naea.org.
