In the financial services world that we live in at Dreggors, Rigsby and Teal, P.A., we ring in New Year’s Day on January 1. But, as of January 2, it’s tax prep season.
Many of our clients are great partners in helping our CPAs and accountants prepare their income tax paperwork for filing with the IRS. Having your documents ready when we begin preparing your return can equate to a quicker turn-around time and ultimately, a faster return in your bank account. Who doesn’t want that?
Read below some of the most common documents we need to prepare a client’s income tax returns. You can take the stress out of gathering these by using our tax organizer as a guide. Once you have all of your documents, let us get started on your tax return.
Here’s a list of the information the IRS may need from you so your income tax return can be filed completely and accurately. Start getting your documents together this month, and see that as you collect the details step by step, the process can be a lot easier (and less painful!) to accomplish!
Last year’s tax records. Have copies of last year’s return? Look over your tax return from last year. Most likely there will be few changes. If you had a 1099 from someone last year, you should be looking for one this year.
Income information. Have numbers in hand (and the forms that go with them) so you can accurately report your income. Examples of common income sources that most of us need for income tax returns include:
- W-2 forms for you and your spouse
- 1099 forms from other forms of income (such as a savings account)
- Unemployment income
- Income from the sale of a property
- Social security benefits
- Rental property income
- Miscellaneous income, such as medical savings accounts, scholarships or Lotto winnings (lucky dog!)
Adjustments to your income. Several items can reduce the amount of income that’s taxed, and these include:
- Student loan interest paid
- Tuition paid
- Classroom expenses (for teachers) paid
- Receipts from energy-efficient home-improvements paid
- Moving expenses paid
- Alimony paid
Many of us who file income taxes are eligible for deductions and credits, too. These can include IRA contributions, child care costs, education costs, adoption fees, charitable donations, medical and dental expenses and expenses related to home business or rental property.
Bank account info. If you want your return directly deposited into your account, have your bank account information ready. You can find these at the bottom of checks or bank statements.
These are a few of the items your tax accountant will need to get your documents rolling on over to the IRS in a timely manner. It doesn’t need to be a daunting task.
If you need tax prep help or more tips on doing it right, call us at 386-734-9441. We are at your service at Dreggors, Rigsby & Teal, P.A.