Are you a personwho just cannot get to sit down and file your tax. It’s a fairly tedious job,after all, for some of us. Or are you the kind that wants to get things done asquickly as possible, and given that you have leaned towards it only makes iteasier to do. Either way, it is essential to note what all needs to be done sothat no points are forgotten, and nothing is missed when you do file your taxreturn.
Let’s look at a checklist for tax preparation of what all is included in your tax filing and ensure your filing goes about smoothly.
Thefirst section of the filing is the Personal information. Where and youbasically state who you are that is filing the returns. This includes yourSocial Security or taxation number, your last years’ tax returns, and that ofyour spouse if the same is applicable and also your banking details for refundsto be processed.
Thesecond section includes information about your income. It requires manydocuments such as Your W2 forms, any of the applicable 1099 forms, your otherincome statements from business or farming, your rental deeds, any receipt ofalimony, any sale documents, and information regarding any miscellaneousincomes.
The main point to note here is that anydocuments with respect to these categories or any other listed in the form haveto be supplied while filing the tax. It is crucial that only the applicabledocuments were attached, but at the same time, no necessary documents we leftout.
Thenext major segment or documents to be attached are any adjustments applicableto your income as by the listed criterion. This includes your form 1098, anyalimony that you may have paid, any contributions made under certain heads, orany expenditure on supplies by professionals such as teachers. It also includedany investments in self pension plans or any money paid towards medicalinsurance.
A significant list of documents that can be attached is for the deductions that the government allows for the individuals to be able to save money from tax and have it for their own expenditure. This list includes many items, such as costs for childcare adoption or education.
Any mortgage interest or investment interestpayments are also deductions that allow people not to pay tax on that part oftheir income. Deductions also include any charitable donations made by theindividual.
Finally,the deductions also have a possibility of excluding from taxable income anymedical expenses or dental expenses and any theft losses that the individualmay have suffered.
It is also important to submit any documents with respect to any tax paid by the individual. These taxes include any state or local income tax, any real estate tax, any personal property tax of any vehicle license fees that the individual may have already paid in this tax cycle.
The final set of documents that you may need to provide are those relating to prior year refunds applied to the current year, foreign account details, and estimated tax payments during the year.
It is advisable to have a tax prep checklist self-made based on what is applicable to you at the beginning of a file meant only to keep your tax documents.
All documentsthat you attach for every year should be a part of the file, or at least a copyof them should always be in the file. This ensures that no documents are lostand also that no documents are missed from the checklist.
There are ways to ensure this online also as ascanned copy of these documents in today’s day, and age should be kept tosafeguard yourself from the theft of documents or loss.