Prep for Tax Season!

Another year means another tax season. It's time to get all of that paperwork organized. Today we have 5 things you should begin prepping right away.

1. GATHER YOUR RECEIPTS

Getting all your receipts together now will help you in figuring out your deductions later. We suggest creating envelopes for each card to sort your receipts. If you create envelopes for 2019 now and file throughout the year, it'll save your time when the next tax season rolls around!

2. COLLECT PAPERWORK FOR YOU & DEPENDENTS

Before you begin, be sure you have all identification and paperwork necessary. Locate a copy of last years return, your social security card and drivers licence. If you're claiming any dependents (children or elderly) here's a list of all the documents you should have:

-Their social security and tax ID numbers

-Their dates of birth

-Childcare payment records (this includes the care provider's tax ID number)

-Adoption papers (if applicable)

-Form 8332 to show that a custodial parent is releasing their right to claim the child to you, the noncustodial parent (if applicable)

-Any alimony payments that have an ex-spouse's social security number

-Any death certificates

3. SOURCES OF INCOME

If you have multiple sources of income, it's time to start tracking them down. We have a list of all the forms you need to document all income from 2018:

-Form W-2 for wages/salary, federal and state tax withholding, tips and earned income credit (Your employer should send this to you by January 31, 2019)

-Form 1099-G if you are unemployed and receiving unemployment benefits

-Form 1099-Misc for compensation from freelance work (You should receive a form from all of your clients)

-Form 1099-R for annuity income, IRA and pension

-Form 1099-Div for those who have earned dividends

-Form 1099-B, 1099-S for income from sales of property and stock

-Form W-2G for any income from gambling

-Any other income from prizes and awards (like lottery winnings), jury duty pay, alimony, or rentals

4. MAKE NOTE OF ANY DEDUCTIONS

Who doesn't want to decrease their income taxes!? Here are a few deductions to gather and provide proof for:

-Records of all expenses if self-employed, including credit card statements and receipts

-Records of expenses for rental homes

-Records of expenses related to investments

-Real estate and property tax records

-Charitable donations, including non-cash and mileage driven for charitable purposes

-Records of medical expenses, including payments made to doctors, dentists, clinics, or hospitals

-Insurance payments

-Childcare expenses, including daycare and babysitters

-Any scholarships or fellowships received

-Qualifying educational expenses

-Interest on student loans

-Job-related vehicle expenses

-Classroom expenses for K-12 educators

-Relocation expenses not covered by employer

-State and local taxes paid excluding withholding

-An invoice showing any sales tax paid on a vehicle

-Any contributions made towards retirement

-Expenses related to natural disaster losses, rebuilding, and repairs

5. TAKE ADVANTAGE OF RESOURCES

There are so many great resources that can help along the way. The IRS has a tool called the Interactive Tax Assistant that will answer any questions you might have before filing. Our personal assistants can also help you help you gather & locate anything you need!

We hope these tips will help your tax season be smooth & seamless! If you need any help along the way, metro's other woman® is just a phone call away!

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