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Website design By BotEap.comIt’s hard to believe another tax season is fast approaching. With the holidays just around the corner, as soon as your Thanksgiving turkey is done, you’ll be sitting in your accountant’s office or loading tax software on your PC to help you file your return. The following are several ideas to help simplify the tax preparation process.
Website design By BotEap.comGet organized
The first step in preparing your taxes is gathering the information and forms you will need to complete the return. A good place to start is to look at your tax returns for the last three years and make a list of the items that were reported. For example, you should expect to receive a W2 form from each of the employers you worked for in 2008. Create a folder marked Tax 2008 and place the forms in it as you receive them. Use this folder to collect any other information or data that you need to archive. Examples include information on mortgage interest, real estate taxes, interest earned and dividends, information on stocks, IRA contributions, charitable giving, k1 schedules, college tuition, alimony, unemployment, 1099, social security received, medical expenses paid, etc. The point is to start organizing early so that when it’s time to file your taxes, you have all the information you’ll need in one place. Website design By BotEap.comRelated, is the need for adequate documentation. Proper documentation is needed for anything that goes on your tax return, and you need to know the documentation requirements. For example, charitable donations over $ 250 must have a receipt in order to report the deduction. Another example is to report on any investment activity. Any sale through the stock exchange must be reported on your tax return. If you lost money on the sale, you can deduct up to $ 3,000 per year and the additional losses carry over to subsequent years. When reporting any stock activity, make sure you have a breakdown of what was originally paid for the shares and why the shares were sold. For example, if you bought xyz shares on May 1, 2008 for $ 100 and sold the shares on June 1, 2008 for $ 50, you have a loss of $ 50 that is deductible. Website design By BotEap.comFor self-employed taxpayers, start preparing your income statement now. The sooner profit and loss returns are filed, the sooner your tax preparer can begin work on the return, which may allow you to file a tax return earlier. In the event that money is owed, this gives you more time to make arrangements to generate the funds needed to pay off the debt. Website design By BotEap.comGet knowledge
For taxpayers who have an accountant who prepares their return, be sure to list any questions you have for your accountant. If you don’t consult an accountant, you can still get your questions answered. Some accounting firms will answer questions over the phone and there is always the possibility of emailing your questions to a general mailbox. A good example of this would be asking about first-time homebuyer credit and what qualifications are needed to receive this benefit. Website design By BotEap.comBeware of companies that charge excessive fees for certain tax preparation services provided. Don’t be fooled by refund incentives where the taxpayer walks away with a check in hand at the time of filing. This is called a quick refund. A fee for the expedited refund service, which can be quite high, can be deducted from your tax return. However, if you choose to apply electronically and wait 7 to 14 days for a refund, you will receive a full refund. All that is needed to e-file is your bank routing number and your direct deposit account number. Another option is to have a check mailed to your address, which can take 4-6 weeks. Website design By BotEap.comChoosing a professional to prepare your taxes should not be taken lightly or made at the last minute. It is important to feel comfortable with and trust your tax professional. A trusted accountant should be one of the many reliable sources that you have available at all times, especially during the current economic climate. Their advice and advice can help you make decisions and unravel the complexity of many financial transactions. If you don’t currently have an accountant, I highly recommend that you start interviewing potential candidates. Even if you prepare and file your own taxes, it is still a good idea to have a third party that you can consult to ask questions and keep you up to date on the latest laws and requirements.
The first step in preparing your taxes is gathering the information and forms you will need to complete the return. A good place to start is to look at your tax returns for the last three years and make a list of the items that were reported. For example, you should expect to receive a W2 form from each of the employers you worked for in 2008. Create a folder marked Tax 2008 and place the forms in it as you receive them. Use this folder to collect any other information or data that you need to archive. Examples include information on mortgage interest, real estate taxes, interest earned and dividends, information on stocks, IRA contributions, charitable giving, k1 schedules, college tuition, alimony, unemployment, 1099, social security received, medical expenses paid, etc. The point is to start organizing early so that when it’s time to file your taxes, you have all the information you’ll need in one place. Website design By BotEap.comRelated, is the need for adequate documentation. Proper documentation is needed for anything that goes on your tax return, and you need to know the documentation requirements. For example, charitable donations over $ 250 must have a receipt in order to report the deduction. Another example is to report on any investment activity. Any sale through the stock exchange must be reported on your tax return. If you lost money on the sale, you can deduct up to $ 3,000 per year and the additional losses carry over to subsequent years. When reporting any stock activity, make sure you have a breakdown of what was originally paid for the shares and why the shares were sold. For example, if you bought xyz shares on May 1, 2008 for $ 100 and sold the shares on June 1, 2008 for $ 50, you have a loss of $ 50 that is deductible. Website design By BotEap.comFor self-employed taxpayers, start preparing your income statement now. The sooner profit and loss returns are filed, the sooner your tax preparer can begin work on the return, which may allow you to file a tax return earlier. In the event that money is owed, this gives you more time to make arrangements to generate the funds needed to pay off the debt. Website design By BotEap.comGet knowledge
For taxpayers who have an accountant who prepares their return, be sure to list any questions you have for your accountant. If you don’t consult an accountant, you can still get your questions answered. Some accounting firms will answer questions over the phone and there is always the possibility of emailing your questions to a general mailbox. A good example of this would be asking about first-time homebuyer credit and what qualifications are needed to receive this benefit. Website design By BotEap.comBeware of companies that charge excessive fees for certain tax preparation services provided. Don’t be fooled by refund incentives where the taxpayer walks away with a check in hand at the time of filing. This is called a quick refund. A fee for the expedited refund service, which can be quite high, can be deducted from your tax return. However, if you choose to apply electronically and wait 7 to 14 days for a refund, you will receive a full refund. All that is needed to e-file is your bank routing number and your direct deposit account number. Another option is to have a check mailed to your address, which can take 4-6 weeks. Website design By BotEap.comChoosing a professional to prepare your taxes should not be taken lightly or made at the last minute. It is important to feel comfortable with and trust your tax professional. A trusted accountant should be one of the many reliable sources that you have available at all times, especially during the current economic climate. Their advice and advice can help you make decisions and unravel the complexity of many financial transactions. If you don’t currently have an accountant, I highly recommend that you start interviewing potential candidates. Even if you prepare and file your own taxes, it is still a good idea to have a third party that you can consult to ask questions and keep you up to date on the latest laws and requirements.
