1. Get a copy of your return from last year.
If you’re like most people, your tax situation doesn’t change much from year to year. So last year’s return is probably full of clues to help you know what paperwork you need to collect for this year.
If your circumstances have changed, make sure to note any differences, e.g. a new baby, a new house, a new car, a new job.
See which forms you received from outside sources last year that provide proof of income and deductible expenses shown on your return. Pay special attention to these:
- 1099-INT
- 1099-DIV
- 1099-MISC
- 1099-B
- 1099-R
- 1099-G
- W-2
- SSA-1099
- K-1
- 1098
If you used these forms last year, it’s likely that you’ll need them again this year. If your tax preparer gives you an organizer for this year, she’ll probably have listed all the relevant items you reported last year.
If you have more than one bank account, brokerage account, or mortgage, make sure you have forms from each of them. If you opened new accounts this year, make sure you have forms for them, too.
If you’re self-employed, make sure you have 1099s from all the clients who paid you more than $600. Refer back to my previous posts if you don’t get a 1099 or if the information on your 1099 is wrong.
2. Review your paper and online calendars, day planners, and archived to do lists.
This will remind you of any business trips you took, conferences and classes you attended, customers you entertained, and stock purchases and sales you made. This can be a gold mine full of tax related information.
3. Gather together your bank statements and credit card statements.
If you don’t have paper copies, check your on-line accounts for copies. Look through the transactions for possible tax deductions you might have overlooked. Did you pay for your State license plate renewal by credit card? You might have an excise tax deduction in that transaction.
Do your best to assemble everything you need before you make an appointment to get your taxes done. Making sure that your paperwork is complete BEFORE you turn your documentation over to your preparer is a great way to speed up your return preparation and reduce your fees.
If the preparer gets everything she needs from you all at once, she won’t have call you to ask for missing forms and she won’t have to keep interrupting her work flow. Your return will get done quicker and easier.
If questions do come up while your return is in process, arrange (if possible) to communicate by email or fax because that usually takes less of the preparer’s time. Every phone call can add dollars to your tax prep fees.
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