With tax season fast approaching, it’s always a good idea to get your tax-related affairs in order.
Although everyone’s taxes are different, a well-organized tax filing can save you time, stress, and maybe even money.
South Metro Federal Credit Union wants to help you turn the chaos of tax season into a well-organized, accurate return.
Gather Your Documents
While a well-organized filing system is difficult for many of us to come by, spending the extra time to hunt down your tax documents will provide a good foundation for maximizing your returns or mitigating your payments. Below are examples of tax-deductible documents you may have overlooked:- Certificate of rent paid
- Education tax credits
- Receipts for job-related expenses
- Medical expenses in excess of 10% of income
- Casualty and theft losses in excess of 10% income
- Mortgage and investment interest
- State and local property and income or sales tax
- Documented charitable donations
- Mileage reports from qualified business, medical, or charitable purposes
- Small business expenses
Personal Information
The IRS requires every taxpayer to use their documented social security number. Make sure you have these numbers for everyone that you plan on including in your filing, or contact the IRS for missing social security numbers in advance. A Missing social security number can cause major delays in your filing, so follow this link to find one that’s missing. You’ll need a birth certificate and a state-issued ID, so make sure you have those handy when contacting your local social security office.Reportable Income
Your employer is likely to send out a W2 via mail or deliver one in person at work. If you have a feeling that they have it ready and want to get a head start on filing, contact the person in charge of human resources and they should be able to get it to you easily. You should receive your W2 by January 31st.Independent contractors and other self employed individuals will use a different form to report income. Here are the documents you’ll need to report based on your employment type:
- Reporting as an Independent Contractor
- Reporting as Self Employed
Assets to Report
Income taxes aren’t the only thing you’ll need to file with the IRS for taxes. Be sure to get your statements or official documents from the account holders of your assets. What qualifies as an asset for filing? Here are some common examples:- Stocks or bonds
- Loans with low or no interest
- Purchase of a business
- Real property
- Business assets
- Intangible assets
These can get confusing, but everything is organized and well-defined on the IRS website. See Publication 551 or Topic No. 703 for more information on assets.
Itemized Deductions
As mentioned previously, holding on to documents containing tax-deductible information is extremely important in getting the most out of your return, or minimizing your payment. For further information on itemized deductions, see a tax professional. In 2018, your itemized deductions will change with the new tax reform bill, so here’s a good resource to stay up to date with the changed policy.Organize Your Paperwork
After you’ve gathered and assembled all of your documents, it’s time to get organized. Manila envelopes, paper clips, and sticky notes will be a helping hand with this step.Sort your documents in piles labeled Shred, Scan, or Store.
Shred:
- Junk mail
- Receipts for unwarranted purchases or taxes
- Monthly bank investment statements
- Employer pay stubs
- Paid off loan contracts
- Records for unowned cars or previous homes
- Membership documents within 6 months of ending the contract
- Expired warranties
Scan:
- Tax returns
- Tax documents
- Annual investment statements
- Pension documents
- Social security statements
Store:
- Car title until it’s sold
- Estate Documents
Sit Back and Relax
Good things come to those who wait, but if you’ve filed your taxes early using all the necessary documents, you may not be waiting for long. We hope you’ve enjoyed these organization tips for tax season and have a well-organized place to store your paperwork for the next tax season.For all this info and more, download our handy infographic:
If you’d like to save up to $15 on your return, South Metro has teamed up with TurboTax to make filing taxes faster, easier, and worry-free. Your filings are secure and accurate, and calculations are 100% guaranteed by Turbotax Online *.
Get started by visiting http://turbotax.intuit.com/lp/yoy/guarantees.jsp for TurboTax product guarantees and other important information!
*TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries.
