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.
1. Prepare Now.
The single, biggest mistake people make
is
waiting until the last minute.
Ideally,
tax planning is a year-round process.
2. 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.
3. 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 2012, please list
change.
If you can no longer claim a dependent, list which
dependent.
Medical:
including dentist, eye wear, prescriptions, doctors and
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 2012.
Charitable Contributions: list total for cash/check seperately
from
the value of items contributed. If you contribute more than
$499.00 you will need to list the date(s) & amount(s) per
organization.
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 2012, 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
seperately 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.
