Tax Preparation Planning

Preparation is key when it comes to successful tax planning. Having your documents organized early for your tax professional can save you a lot of time and money. In order for your income tax return to be prepared properly you need some essential documentation that will make the process more smooth and stress free. To begin with, the IRS needs personal information and supporting documentation on know who is filling the return, their filing status, who is being claimed on the return, and proof of residency and relationship. Personal documentation you could provide to support the facts are items such as social security cards,  birth certificates, school, daycare, medical, or social service records, and/or custodial agreements. Its also necessary to have information about your income. Have you and your spouse’s W-2 forms, documentation of any investment income, Income from state and local income tax refunds or unemployment, business income, rental property income, and social security benefits. Other miscellaneous documentation includes jury duty, gambling winnings, medical Savings Account and scholarships. You are also required by IRS guidelines to include any other financial documentation to your tax professional that can affect your taxable income, exemptions, deductions, credits, amount owed and/or refund due such as but not limited to:

  •  Alimony Paid
  • Business Income & Expenses
  • Business Use of Auto & Home
  • Charitable Contributions
  • Energy Credits
  • Educator Expenses
  • Health Insurance & Medical Payments
  • IRA Contributions
  • Keogh, SEP, SIMPLE and other self-employed pension plans
  • Mortgage Interest & Taxes
  • Moving Expenses
  • Rental Property Usage
  • Student Loan Interest
  • Vehicle Registration

To receive all of the deductions and credits you deserve be sure to have supporting documentation such as, child care cost, education cost, casualty and theft loses, and medical and dental expenses to name a few. Also, having proper documentation of the taxes you’ve paid in the past can keep you from overpaying. Make sure you are prepared this tax season so you can accurately file your return without missing those much needed and earned deductions. For more information on tax planning and reporting contact me today! I would love to be of assistance.