For many people, it’s the most dreaded time of the year—tax time. We all need to file federal taxes, but it’s hardly something most of us look forward to.
However, when it’s time to file your taxes, the process doesn’t need to be painful. The most effective way to approach tax time is by being organized.
Once you have all of the paperwork and documents in order, you can get your taxes filed easily. However, just exactly what information do you need to file your tax?
Before you get started, keep reading to learn everything you need to file your taxes.
Identification Details
First, you’ll probably need a few key personal details on hand before you can file your tax return. You know you need your tax ID and social security number, but you may also need the ID details of your spouse and your dependents or children, as they can have an impact on your tax returns.
When it comes to your spouse, you may also need documentation of their income, since filing tax jointly means their tax bracket can impact your tax.
Evidence of Your Income
When filing your taxes, you’ll need documentation of your income. This could be in the form of a W-2 from your employer, or you can add up all of your pay stubs over the year—just be sure to use only the real pay stubs!
However, remember that you need to declare all of the income you earned, not only income from your job. Other sources of income to bring along to your tax appointment include rental income, retirement payments, dividends, gambling wins, and alimony or child support.
If your taxes are complex, this is certainly a lot to keep track of. We recommend keeping a file with copies of all your income statements, adding them in throughout the year.
This will save time once tax season rolls around.
Make a List of Your Deductions
The good thing about your income is that some of the taxes owed on it can be balanced out with deductions.
It’s helpful to make a list of your tax deductions, as there are plenty of ways to save on your taxes. Common deductions include charitable donations, work expenses, child tax credits, and home mortgage points.
Again, keep a list of them throughout the year–otherwise, you may forget about some of them when it’s time to file tax.
If you’re in doubt about what you can claim, consult your tax advisor or the IRS.
Use This Checklist to File Your Taxes With Ease
Are you ready to file your taxes? With the above tax preparation checklist, it’s easy to know exactly what you need to have with you when it’s time for tax.
Gathering all of your documentation together will save time, so get your tax done as soon as possible. Hopefully, a generous refund will be in your future!
Get started today by being organized and proactive when it comes to filing your taxes.
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