Filing Tips
April 15th, a date that most people dread - and for an unfortunate few, the date that they actually begin preparing their tax information. However, it's time to face the music. If you want to pay IRS the least amount possible, you must plan ahead.
Prepare Now:
The single, biggest mistake people make is waiting until the last minute. Ideally, tax planning is a year-round process.
Gather Your Forms:
W-2 - employees year end wage information statement.
1099 Int - reports interest
1099 Div - reports dividends
1099 B - reports brokerage trades. With stock and mutual fund trades you will need to provide the purchase date and price for each unless the information is provided with your form.
1099 C - reports an amount of debt forgiven.
1099 G - reports government payments received such as unemployment compensation.
1099 Misc - reports rental income, non-employee compensation and other income.
1099 R - reports distributions from retirement accounts.
1099 SSA - reports the amount received from Social Security.
1098 - reports mortgage interest you have paid either on your principal residence, 2nd home, or rental property. If you have multiple statements, you should indicate what property each statement is for.
1098 E - reports student loan interest paid.
K-1 Form - reports income from S Corporations, Partnerships or Trust.
Make a List of Expenses:
Change of Status: for any new dependents or spouse, list name and date of birth. If you have married or divorced during 2014, please list change. If you can no longer claim a dependent, list which dependent.
Medical: including dentist, eye wear, prescriptions, doctors and hospital expenses not reimbursed, medical miles and health and dental insurance not paid by your employer.
Realestate Taxes: list amounts for rental and business properties seperately from your home property taxes paid in 2014.
Charitable Contributions: list total for cash/check seperately from the value of items contributed. If you contribute items with a individual or combined total of more than $499.00, a list that includes the date(s) & amount(s) per organization will be needed.
Employee Business Expenses: list expenses incurred and required as an employee; such as union dues, uniforms, education, business
miles (not commuting), cell phone, etc.
Moving Expenses: list expenses for travel, lodging, and storage of personal effects. You will need to list the distance between your old home and old job and your old home and new job.
Child Care Expenses: list amounts paid to each provided and, if you have more than one child, the amount for each child.
Education Expenses: that includes tuition, books, and lab fee's paid to a college or vocational school. You should indicate for whom the expenses were paid, such as taxpayer, spouse or dependent.
Car, Truck, Motorcycle, Boat or RV Purchase: if you purchased any of these items in 2014, please list the amount of sales tax paid.
Rental Properties: list the income and itemize the deductions per property. If you did any improvements such as carpet, tile, cabinets, roof, fence, etc., those items should be listed seperately with the date, description and amount. If this is a new purchase, include a copy of the purchase statement (hud-1). Don't forget about miles relating to maintaining the property.
Business Income: list the income and itemize the deductions per business. If you purchased business property such as equipment,
tools, desk, chairs, computer, software, etc., those items should be listed separately with the date, description and amount. Don't forget about business miles.
Alimony: if you paid court ordered alimony, list amount and to whom including social security number. If you received court ordered alimony list the amount.
Properties Sold: include a copy of the hud-1 statement from the purchase and sale of the property. List improvements by description and amount.
Estimated Payments: list date and amount of each payment.
April 15th, a date that most people dread - and for an unfortunate few, the date that they actually begin preparing their tax information. However, it's time to face the music. If you want to pay IRS the least amount possible, you must plan ahead.
Prepare Now:
The single, biggest mistake people make is waiting until the last minute. Ideally, tax planning is a year-round process.
Gather Your Forms:
W-2 - employees year end wage information statement.
1099 Int - reports interest
1099 Div - reports dividends
1099 B - reports brokerage trades. With stock and mutual fund trades you will need to provide the purchase date and price for each unless the information is provided with your form.
1099 C - reports an amount of debt forgiven.
1099 G - reports government payments received such as unemployment compensation.
1099 Misc - reports rental income, non-employee compensation and other income.
1099 R - reports distributions from retirement accounts.
1099 SSA - reports the amount received from Social Security.
1098 - reports mortgage interest you have paid either on your principal residence, 2nd home, or rental property. If you have multiple statements, you should indicate what property each statement is for.
1098 E - reports student loan interest paid.
K-1 Form - reports income from S Corporations, Partnerships or Trust.
Make a List of Expenses:
Change of Status: for any new dependents or spouse, list name and date of birth. If you have married or divorced during 2014, please list change. If you can no longer claim a dependent, list which dependent.
Medical: including dentist, eye wear, prescriptions, doctors and hospital expenses not reimbursed, medical miles and health and dental insurance not paid by your employer.
Realestate Taxes: list amounts for rental and business properties seperately from your home property taxes paid in 2014.
Charitable Contributions: list total for cash/check seperately from the value of items contributed. If you contribute items with a individual or combined total of more than $499.00, a list that includes the date(s) & amount(s) per organization will be needed.
Employee Business Expenses: list expenses incurred and required as an employee; such as union dues, uniforms, education, business
miles (not commuting), cell phone, etc.
Moving Expenses: list expenses for travel, lodging, and storage of personal effects. You will need to list the distance between your old home and old job and your old home and new job.
Child Care Expenses: list amounts paid to each provided and, if you have more than one child, the amount for each child.
Education Expenses: that includes tuition, books, and lab fee's paid to a college or vocational school. You should indicate for whom the expenses were paid, such as taxpayer, spouse or dependent.
Car, Truck, Motorcycle, Boat or RV Purchase: if you purchased any of these items in 2014, please list the amount of sales tax paid.
Rental Properties: list the income and itemize the deductions per property. If you did any improvements such as carpet, tile, cabinets, roof, fence, etc., those items should be listed seperately with the date, description and amount. If this is a new purchase, include a copy of the purchase statement (hud-1). Don't forget about miles relating to maintaining the property.
Business Income: list the income and itemize the deductions per business. If you purchased business property such as equipment,
tools, desk, chairs, computer, software, etc., those items should be listed separately with the date, description and amount. Don't forget about business miles.
Alimony: if you paid court ordered alimony, list amount and to whom including social security number. If you received court ordered alimony list the amount.
Properties Sold: include a copy of the hud-1 statement from the purchase and sale of the property. List improvements by description and amount.
Estimated Payments: list date and amount of each payment.