In the next few weeks you will begin to receive all those tax documents – W-2, Form 1098, Form 1099, the list goes on – that remind us all that it’s tax season, assuming the onslaught of H&R Block and TurboTax commercials haven’t already burned it into your brain.
You’ll want to have a plan for collecting and organizing all this information once it starts to arrive. There’s nothing worse than trying to track down a missing form when you go to file. So set up a folder or box in a handy place. You can simply put all the envelopes in there for review prior to getting your returns done. Or better yet open each piece and start to organize them by form type or tax schedule. Your tax preparer will love you for it.
You will also need to gather up documentation for any deductions you wish to claim, such as charitable donations, real estate taxes paid, sales taxes on large ticket items, excise taxes, medical expenses and so forth. A great place to start is reviewing your prior year’s return to see what deductions you took and follow suit for this year. You can also reference the IRS link here for ideas of what might be deductible: click here.
Lastly make a note of any important changes/events in your life: marriage, babies, retiring, purchasing a house, etc. to discuss with your preparer as these could lead to additional deductions or credits that you haven’t received in the past.
Happy Organizing!