Tax season is on its peak. More than 145 million Americans will file tax return this year. If you are reading this article, then chances are that you have not yet filed your tax return. Here are some tips before your file your tax returns:
1. Collect your Income Documents: Check your mailbox to see if you received your W-2. If not, then contact your employer. All employers are required by law to send Tax documents by January 31st. If you have not received it yet, then you should initiate a request so that your employer can send you another copy of W-2 by mail soon.
2. Collect your 1099 forms: If you have any other form of income (other than the wages), then it is possible that you might be getting 1099 in mail. For example, if you have a savings account, then banks will send you a 1099 form if you earned more than $10 in interest in 2012. Also, if you provided some services to another company, then you might be receiving 1099 from that company. You should collect your entire 1099s in one place. They will count towards your total income for tax purposes.
3. Investments: If you invest in stock market then you should check with your broker about your Tax documents. If you sold some stocks in 2012, then you have to prepare profit or loss statement for those transactions. These calculations could be quite complex because they depend on the date of purchase of those stocks, date of sale of those stocks, and stock prices on those dates. You might want to take the help from a qualified CPA, or a Tax professional to help you with that.
4. Mortgage: If you are paying mortgage on your house, then you should collect documents related to mortgage payments
5. Alimony and Child support: Collect all documents that describe your expenses towards alimony and child support.
After you collect your documents, you should file your tax return. If you think that your tax return could become complex, then find a local tax preparer who can help you.
Sandeep Chauhan is Marketing enthusiast. He has 10+ years of experience in designing solutions for fortune 500 companies. In his free time, he likes to play with his dog and go travelling. Sandeep holds an MBA from the University of Michigan. Sandeep is responsible for Product Vision, Marketing and Technology at BestTaxPreparers.com. Best tax Prepares helps consumers to find California CPA tax professionals who are trained in specialized skills.