in Tax Preparation

Tax Prep Starts Now

What is tax preparation?
People often feel overwhelmed when the tax deadline starts to approach. They feel rushed and often procrastinate until the last minute to start gathering their important documentations, receipts, and information. The best way to avoid this last minute stress is to start your tax prep now. While tax season is a short window, ideally we should spend all year preparing. Take advantage of tax knowledge and all of the tools you can before the end of the year to get an estimate for your income taxes, find out if you qualify for the right credits, begin deducting your expenses, reduce your taxable income, ultimately paying less taxes.

 

The most important thing you can do in order to avoid problems down the road, is keep track of all of your important tax records. It is recommended by the IRS to keep all tax related records for 3 years in case you are audited. Not to mention last year’s W-2 forms can help you when it comes to filing taxes this year.

 

Here are some examples of tax-related documents that you might want to keep:

 

  • W-2 forms
  • Pay stubs for the year
  • Mortgage payment stubs and/or home purchase closing statement
  • Last year’s tax return (for quick reference and comparison)
  • Receipts from anything you might claim as an itemized deduction
  • Receipts from any charity (e.g. for church tithes, disaster relief donations, etc.)
  • Car mileage log (in case of business use)
  • Any receipts for business travel expenses
  • Canceled checks (especially for IRA contributions and other deductions)
  • Credit card statements and bank statements (to verify any deductions)
  • Medical bills (especially if they exceed 7.5% of your income)
  • 1099-G form (for deducting state or local income taxes)
  • 1099 forms (from any dividends or other income paid to you)
  • Mobile phone bills (especially if you made charitable donations by text message)

    •  

    Sandra King Enrolled Agent

    Sandra King is an enrolled agent, empowered by The United States Treasury to prepare your personal or business tax filing. While her services are offered nationwide, Sandra King locally serves the greater Dallas-Fort Worth area, including but not limited to Arlington, Bedford, Colleyville, Euless, Fort Worth, Grand Prairie, Hurst, Mansfield, North Richland Hills, and Richland Hills.

     

     

    King Financial Services Inc
    Related Posts