Tax Preparation Time Is Here
Tax Preparation Time Is Here
It’s our favorite time of the year, Super Bowl week and tax season!
Okay, most people don’t like to think of their taxes as the excitement builds for Super Bowl this week, but a little tax preparation now will save lot stress in the near future.
It’s late January and the season is really starting to get into gear and now is the time to start your tax return preparation. The best way to start is to first create a file for all of your tax forms and statements.
If you haven’t already, you will shortly be getting a number of different tax forms and statements in the mail. Here are some of the more common ones to look for to get a quick start to the tax season.
W-2: If you earned income working for an employer last year, you will receive a W-2 This form shows how much income you earned and how much was deducted for taxes and any other withholdings.
1098: If you own a home and pay mortgage interest, the lender will send you this statement detailing the interest you paid and can deduct. The 1098 form may also list the property taxes and points paid, which are also deductible.
1098-E: If you are paying back federal student loans and paid over $600 in interest you will be getting a 1098-E form. This form lists the tax deductible interest you paid. If you paid under $600 you may not get a 1098-E form, but the interest is still deductible.
1098-T: Higher education costs are tax deductible and details the tax deductible eligible education costs you paid for qualified education expenses.
1099-T: This form reports most payments of interest income.
Statements for legitimate deductions and credits. If you are eligible to take deductions and credits, start collecting the supporting documents now. This can include charitable contribution statements, receipts for job searching expenses, retirement contributions and child-care expenses.
If you are claiming dependents, make sure you have social security numbers for all you are claiming.
A little effort now will make for a better tax season and Super Bowl week.