Gathering Your Documents for Filing Taxes This Spring
It’s probably not your favorite part of the season, but with longer days comes another, less-celebrated day: Tax Day!
If you are thinking about getting your “ducks in a row” before deadlines are looming, here are a few pointers to help you prepare for a smooth and pain-free tax filing.
Get a Helping Hand
As a financial advisor, I am not a tax attorney or an accountant. I am focused on helping you make smart financial decisions to meet your short-term and long-term goals. From saving for college, to building retirement portfolios, wisely investing your inheritance, or getting your budget back on track, I have a plethora of skill sets to create secure finances for you and your loved ones. But I don’t do taxes!
If you’re not comfortable filing alone, seek the assistance of a professional. Just like I would not recommend planning for retirement alone, I would not recommend tackling confusing tax laws, deadlines, and filing requirements alone, either.
I can certainly recommend trusted professionals I have worked with over the years. This can save you the trouble of searching for someone reliable on your own. Just call my office for a referral.
Documents to Gather
One of the best things you can do for yourself is to begin gathering the necessary documents. Most families will begin by receiving in the mail (or printing off a copy online) your W-2s. If you work as an hourly or salaried employee, chances are this is the paper you need most.
If your work, however, is as a contractor or freelancer (you typically have many clients), each of them should be sending you a 1099. This outlines the payments they’ve made to you over the 2022 year. Be sure each has sent you one, and if necessary, reach out for any you are missing.
Those that have a mortgage payment likely have received a 1098 Form by now. Save this form (or visit your online payment portal if you didn’t get one in the USPS mail) for your taxes. This document will show what you’ve paid on your mortgage, and how much of it was toward interest.
Other common documents you may need before filing will be your and your spouse (if filing together) and your children’s social security numbers. Track down the cards now if you don’t have them memorized. This is especially important if you are using a new tax preparation professional.
Common Needs for Filing
In addition to the aforementioned documents, it is often also good to have tabs on documents such as:
Last year’s tax returns
Bank account and routing numbers (for direct deposits)
Receipts for itemized purchases (business related)
Donation receipts
Childcare costs, including Tax ID numbers and total spent
Medical or dental bills
Having handy anything you aim to claim on your taxes, such as proof of your gas mileage, can come in handy to have prepared ahead of time. If you can walk into your professional’s office with all the needed documents in hand, it will make the entire process much smoother.
Everyone Is Different
Just like advising unique individuals about their individual financial futures, no two tax returns are exactly the same either. Seeking the assistance of a professional ensures that you are staying compliant.
While there are many common documents most filers will need, it is important to realize each person is different. You may have unusual circumstances, life changes (new child, new home, new job), or forms of payment or write-offs that your neighbor may not.
To be sure no stone is left unturned, ask for help and find a trusted tax professional to keep your taxes in line.
