Don’t get caught with your pants down at tax time! Be prepared with these 6 things
Whether this is your first time working with an accountant to prepare your tax return or you’ve done it year over year, it’s hard to remember all the information and documents you need. Some forms come in the mail, others you get online, and it’s possible some pieces of information might not even be on your radar. It can be overwhelming to say the least.
But let’s be honest, the more prepared you are the less stressful the whole thing will be. To make the most out of working with your accountant there are several things you should start organizing and collecting ahead of time to bring in with you.
1. Last year’s tax return
We have a saying in the industry – everything should be the same, except for what’s different. The best starting point is to look at your previous year, repeat what’s the same and assess what’s different. For a lot of people, each year isn’t drastically different from the one before.
However, there are some life events that do change the game quite a bit. If you’ve gotten married or divorced, had a baby, bought a house or started a business, you should expect some pretty significant changes to the way you previously filed.
2. Anything marked “Important Tax Document Enclosed” that you receive in the mail during January
As obvious as this may seem, identify one location in your home where you collect these documents. Don’t ignore them and don’t wait to put them in your designated spot – do it right away. Make sure your spouse, children or anyone else who grabs and handles your household mail does the same. You’d be surprised how much can get lost in a busy house in just a month or two. Save yourself the stress and be diligent about collecting these items as you receive them.
What should you be looking for? Many different items come through the mail depending on your circumstances. Some of the most common are w2s, 1099s, and health insurance forms especially a 1095A form if you have Market Place health insurance. All of these forms should be sent out by January 31st.
For a completed list of documents to collect and bring to your appointment .
Download Comprehensive Checklist
3. Investment year-end tax form
These can actually be a little tricky. Your accountant will want to see the actual year-end tax form – not the 12 months of statements. In many cases, these are not available to you until February 15th. Be wary if they come sooner than that. Investment forms are notorious for having updates and sending out corrected forms in late February or March. Best to reach out to your financial advisor with any issues or concerns if there is a significant delay. (not sure that is needed or not)
4. Income and expenses reports if you are a landlord or business owner
Having multiple streams of income, like rental properties or owning your own business, can be a great way to build your personal net worth. But, they definitely throw a curveball into your tax filing. You’ll have to summarize a full year of income and expenses to share with your tax professional. If this freaks you out, don’t wait to call us – we can help you sort it out.
5. The most forgotten item – kid’s social security numbers
This seems like an arbitrary thing to get such a specific shout out, but you would be amazed at how consistently people forget this important information. Write your children’s social security numbers down and save them either somewhere accessible in your cellphone or add it to your designated spot for collecting all of your tax documents. If the kiddos are in daycare or after school programs, be sure to gather that info as well. You’ll need the name, address and tax id number of the provider along with a total per child paid in the calendar year. Yes, this info is still needed if you are utilizing a pretax benefit through your employer.
6. Any questions or concerns you may have
There are over 2 million words in today’s tax code – it’s okay to have some questions. Our job is to make you feel comfortable, help you through the process, and get every dollar back that you possibly can – it’s your money after all. Don’t hesitate to ask us anything. We are here to be your advocate and ally through this whole process.
Whether you’re a newbie to working with an accountant or a seasoned vet – we’ve created a comprehensive downloadable “Tax Prep Checklist” to make collecting your tax documents a breeze. Nothing helps put your mind at ease quite like a good checklist!
Ready to schedule your meeting? Call us at 603-432-8291 or make an appointment right online at http://tslnh.com/schedule-an-appointment/.
