Believe it or not, the taxes are due tomorrow! We hope you have incorporated some of our tips throughout the year into your daily processes, all of which should have helped make it easier to gather the information for your tax return. With fresh memories of filing for 2014, you will know what worked for you this year, as well as what caused you the most headaches.
It’s not too late to start getting your tax documents in shape for next year. Here are a few tips which we find useful.
1) Create a tax folder for 2105 if you have not done so already. All tax forms you have received, or will receive in the next few weeks, should go into that file.
2) Collect all receipts for tax deductions you are allowed to take on your return. These would include both cash and physical donations to charitable organizations, receipts for medical items (if you qualify), and receipts for business related expenses such as mileage and supplies. Make sure you have received the tax form for your mortgage interest – a common deduction.
3) Gather investment statements which you will need to refer to for capital gains, interest, and puchases and sales which must be reported.
4) Gather your bank statements and confirm that you have received a 1099 form for any interest you received on those accounts.
5) Confirm you have received a W2 from your employer which reflects your earnings for the year.
6) Do you have students for whom you are paying college tuition? You should receive a tax form for that amount as well.
7) If you are retired and receive Social Security, have distributions from an IRA, penion or 401(k), be sure you have that information in the file.
8) Have a home office which you use for a deduction? Collect any relevant bills for that deduction so you are ready to pro-rate them on the return.
By having all of this information in the tax folder, when you begin to prepare the return, or take the information to a preparer, you will have everything you need all in one place. Review your tax forms to make sure they are complete, and call the providers if you are missing any. Being proactive will save you time, stress and money (fewer calls from the accountant and a reduced chance of missing a deduction)! If you set up this file now, you are even better equipped for the challenge when you file for 2015!
Thanks, for reading,
Muffy and JoEllen
PS This post was taken from a recent Monthly Tips Newsletter; follow the link to have them delivered directly to your in-box.