PREPARING FOR TAX SEASON
January 8, 2019 - Douglas Myser
Preparing for tax season. Well 2018 is behind us and now that dreaded time of the year is near, tax season. Tax day is April 15th, 2019, and even though it is still a few months away, it's never tool early to start getting everything you need to file in order. By the time it's time to file your taxes, you'll be ready to sit down with your tax preparer or input your data into an online program. The process can seem a bit daunting. Start by gathering your personal information. Make sure you have your Social Security card or Tax Id number. You will also want to bring your unexpired driver's license, and passport to your appointment. This should include your spouse information, if possible.
Preparing for tax season. It doesn't have to be stressful, if you take time to prepare ahead of time. Gather dependent information. If your using dependents, get their social security numbers or tax id numbers, dates of birth, childcare payments records (this includes the care provider's tax ID number), adoption payers, (if applicable), form 8832 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 as well.
Make a record of your income. All W-2 wages and salary, federal and state withholdings, tips and earned income credit. Form 1099-G if you are unemployed and receiving unemployment benefits. Form 1099-Misc for compensation from freelance work, form 1099-R for any annuity income, IRS or pension income, form 1099-Div for any earned dividends, form 1099-B 1099-S for income from sale of property or stock, form W-2G for any income from gambling, and any other income from prizes and awards, the lottery, jury duty, alimony or rentals.
Finally, make a list of all deductions that you have to see if you can reduce your taxable income by the new IRS tax rules. If you have a tax debt, don't miss the filing date or you will have a 5 % penalty for five months in a row or 25% of the principal amount owed. File, even if you owe. You can always contact a good Tax Resolution Services firm and inquire about the IRS Fresh Start Program and every Tax Relief program available under the sun.