Tax season has come yet again. To make everything go smoothly, you will first need to gather all of your necessary documentation so you are prepared when you come in to your Flower Mound TX tax services. Starting with all of your documents reduces delays so you can get your taxes filed sooner. Here are some of the relevant documents you might need to find before starting in on your taxes.
Most people will get a W-2 form from their employer at the beginning of the year, which simply contains earnings information for the previous year. You are then responsible for inputting that information into your tax return, but doing so is very simple. Many employees will only need their W-2 form in hand before settling down to file taxes if they have a simple return. If you haven’t received one or lost it, contact your employer immediately.
If you have done contract work of any kind for a client that has totaled more than $600, they should send you a 1099-MISC form. If you are a freelancer or contract worker you may have several of these. If a client did not provide you with one, reach out and ask them for it. If they never generated or sent one, you still need to list that income on your taxes so be sure to report it.
Records of Income and Expenses
For business owners, self-employed individuals and freelancers, even more documentation will be needed before you can file your taxes successfully. You should gather all records of income and expenses for your business, which can include account ledgers, receipts, financial statements and more. If you use accounting software it often comes with functions that allow you to generate these reports automatically. If you paid estimated taxes, have documentation of those payments as well.
Rental, Retirement and Investment Income Documentation
If you own and rent property, you will need detailed documentation of the value of your assets, how much you have earned in rent and how much you have paid in expenses. Documentation regarding your pension, IRA accounts and Social Security income may be required depending on whether any of your retirement assets are taxable at this point in time. Finally, if you have investments, you are required to report any income you make from interest. Obtain this documentation from the firms through which you invest.
Reports of Any Other Income
At the end of the day, your taxes are about how much you made last year so you can be sure to pay the correct tax amount. This means that documentation regarding any other unusual sources of income should be gathered as well. Additional income documentation can be from gambling earnings, income from hobbies or side hustles, income from royalties, alimony, child support payments and anything else.
It is critically important to have all of your documentation present and accounted for before coming in to your provider of tax services in Flower Mound TX. It helps ensure you get your taxes filed correctly the first time so you can get any refund you are owed as quickly as possible. Gathering all needed documentation at the start often makes tax season much more painless.