It’s that time of year again. Tax season has come and gone, and you’re now looking at the receipt of your income from the past year and trying to figure out how much money you owe the government in taxes. But what do you need when it comes time to file your taxes? Taxes can be complex or they can be simple, depending on how well you understand what information the government requires from you when it comes time to file your taxes online.
1: A Tax Return
You’ve been carefully keeping your records and receipts for the year, so now it’s time to sit down with your paperwork and figure out what you owe. Taxes are never fun, but with all the changes in the tax code from last year, they’re a little more complicated than usual. There are some common mistakes that people make on their return that can lead to additional costs or errors. Here are five things that you’ll want to keep in mind this tax season:
2: Your Social Security Number
No one wants to think about taxes, but they are important. The IRS will ask for your social security number, and the account that you want the refund deposited into. If you don’t have a bank account, then they’ll issue a check and send it by mail. You should also keep track of all of your receipts throughout the year so that if the IRS requests them to verify your tax return, you won’t have any problem providing them with what’s needed. Lastly, make sure that if there is any change in your income or expenses during the year that needs to be reported on your tax return, then contact a tax service as soon as possible!
3: Your Bank Account Information
When filing your tax return, there are some things that you will need: your bank account information (name of the account holder and routing number), the amount of money in your account, and your Social Security Number. To provide these items, you will have to contact a tax service. You can find a service on the Internet or call one of those numbers listed in the phone book. Either way, it should not be too difficult to locate a tax service. Once you have contacted them, they will send you paperwork for them to prepare your tax return.
4: Wage and Earning Statements
Your tax service will need your wage and earning statements, which include: a pay stub from your employer; any report income from investments, pensions, or other sources; interest and dividend earnings; Social Security or other retirement benefits. You will also want to provide statements of all individual expenses, such as medical costs, childcare expenses, and charitable contributions. You will also be asked about education credits; Other possible tax breaks may be available depending on your circumstances. The more information you have prepared before talking with a tax service the better off you will be.
5: A List of Deductions and Credits
There are some deductions and credits that will help lower your taxable income. These include, but aren’t limited to, an IRA contribution or deduction, student loan interest deduction, tuition and fees deduction or credit, and a mortgage interest deduction or credit. You may also be able to deduct work-related education expenses. For the limit on work-related education expenses. There are other deductions and credits too – talk with a tax service professional for more information.
If you have any questions about what kind of rap financial can provide answers to all of your questions, give us a call today.