The income tax filing season has begun and important tax documents
should be arriving in your mailbox. Even though your return is not due
until April 17 this year, you can make tax time easier on yourself with
an early start.
*Gather your records*:
Round up any documents you’ll need when filing your taxes: receipts,
canceled checks and other documents that support income or deductions
you’re claiming on your return. Remember, the IRS will expect you to
have these documents when your return is audited!
*Be on the lookout*:
W-2s, 1099s and 1098s will be coming soon; you’ll need these to file
your tax return. Additionally, with new filing requirements for stock,
mutual fund and any broker transactions, you should be looking for a
full, detailed 1099-B showing cost basis of these transactions. This is
required information this year and must be shown on your tax return!
*Consider direct deposit:
*If you elect to have your refund directly deposited into your bank
account, you’ll receive it faster than a paper check in the mail. In
fact, your refund is usually in your bank account less than two weeks
after filing, if you use e-file!
*Review! Review! Review!:
*Don’t rush. We all make mistakes when we rush. Mistakes slow down the
processing of your return. Be sure to double check all the Social
Security numbers and math calculations on your return as these are the
most common errors.
The IRS has been aggressively looking at all tax returns to find what
they term as the “tax gap”. This is the amount of tax dollars they
receive versus what they think they should be receiving. Keep all
supporting documentation, maintain excellent records of all your
deductions and when the auditor knocks on your door, you will be able to
prove your deductions and will therefore survive the audit.
