Before starting your taxes, make sure you have all the necessary information to prepare your return. Here’s a sampling.
Your income might include your salary, bonuses, commissions, and payments for freelance or part-time work. Having a list of all your income sources allows you to check off each Form W-2 or 1099 as you receive it. Even if you didn’t receive a form, you still need to report the income you received.
Account for all the rental payments you received from your tenants and for all the expenses you had to pay, including mortgage interest and real estate taxes. Be aware that the house payment portion that goes toward the loan principal is not deductible. Do not forget to take into account the real property depreciation.
Collect documents showing interest, dividends, and investment trades, such as 1099-INT, 1099-DIV, K1 schedules or composite 1099 forms from your broker. Be aware that often times brokers issue amended 1099 forms and it is advisable, before filing your return, to check with your broker that the 1099 you received is the final one.
Maybe you are a partner or a co-owner in a business, set up as a flow through entity and, regardless if your participation is active or passive, you must report your share of the business activity.
You should have all your receipts for property taxes, mortgage and home equity loan interest, childcare expenses, medical bills, tuition, charitable contributions and other potentially deductible or credit-eligible expenses. You’ll also need records of any estimated tax payments.C
Don’t deal with tax issues on your own. Contact us right now to find out how we can provide you with the answers you need. You can also go to the IRS website for more information about tax rules and regulations.