What You Need to Prepare for Your Tax Return
Tax returns in the United States are the reports filed with the Internal Revenue Service (IRS) or with the state or local tax collection agency containing information used to calculate income tax or other services. However, tax returns are generally prepared using forms prescribed by the IRS or other applicable taxing authority. Therefore, the federal government estimates that about 60% of individuals use paid preparers to complete and also submit their tax returns.
Your preparer may take information directly from you or ask you to complete a questionnaire and in either way, you will need to even gather time and organize the information. The following are some steps to take before meeting your tax return preparation;
Choose a preparer
If you not have a preparer, you should find one and a great way to find a preparer is to ask friends and advisors to make a referral. However, you should always be sure that the person you choose has a preparer tax identification number showing that he/she is authorized to prepare federal income tax returns. Also enquire about the fees which are likely depend on the complexity of your return.
Schedule an appointment
The sooner you meet your preparer, the sooner you can begin the process. It is therefore important to act promptly if you anticipate a refund so you can receive money promptly. However if you wait for so long to schedule an appointment, you may not get to see your preparer.
Gather your information returns
You should gather your information on various types of returns that you need. Where, for each form, you should verify that the information matches your own records. The following are some of the most common forms;
- Form W-2 if you have a job
- Form SSA-1099 if you received social security benefits
- Various 1099s to report income
Get your receipts together
The receipts you need depends on whether you choose to itemize your personal deductions instead of claiming the standard deductions. You can therefore choose to itemize if this produces the greater write-off. For itemizing, get receipts together by whatever system used throughout the year to retain receipts for various deductive expenses.
Gather records for charitable contributions
If you had made donations to charity and itemize your deductions, you need to specify records to claim any write-off
Brace yourself for tax law changess
You do not have to become a tax expert but it helps to know about new tax rules so you will not be caught off guard. The individual healthcare mandate brought in a slew of changes, including new forms for claiming the premium tax credit for eligible individuals who purchased coverage through a government marketplace. Find out more in this site : http://www.payrollserviceaustralia.com.au
Make a list of personal information
You need to know where to spend the money too so having the following documents will start the tax processing off right;
- Social security number
- Copy of the previous year’s tax return and spouse’s as well(if applicable)
- Bank account number and routing number