What You Need to Prepare for Tax Filing

For taxpayers, the April 15th deadline for tax paperwork submission is approaching quickly. If you plan on tackling tax form preparation yourself, there are a number of supporting documents you’ll need to prepare before starting the process.

Gathering all the essential paperwork and documentation will provide you with the key tools to help you not only maximize your tax return, it will also help you determine what type of tax forms you will actually need to complete.

Gather Documents for Tax Return

The following list of tax returns will help you gather all the required info you need:

• W-2 forms: This paperwork is automatically generated and mailed from all your employers for a tax year. You will only receive a W-2 if you were considered a “full-time employee.”
• 1099-MISC: If you work as a contractor or a freelancer, your current employer will send you these forms.
• 1099-INT: Banks and savings institutions ship these forms to document any interest earned on investments they are holding in your name.
• 1099-DIV: Investment fund companies distribute these forms to show any dividends and total capital gains earned during a tax year.
• 1099-B forms: Sent by brokerage firms to report trades in stocks and bonds sales in non-retirement accounts.
• 1099-G forms: When the government pays you they will supply you with this form.
• 1099-R: The plan custodian will issue forms documenting any distributions from IRAs, pensions and annuities.
• K-1 form: These forms are generated from a partnerships, S-corporations, trusts and estates and indicates the pro-rated share of net income or loss for a year.
• 1099-SSA: The government should provide this Social Security tax form.
• 1098: Your mortgage company should provide you with this form related to mortgage interest payments information.
• 1098-E: Your lending institution should provide this form related to interest paid on student loan debts.

SSA Requests

Typically, these forms are automatically generated and sent to the taxpayer, and following the above list will ensure that you gather everything required for the job. As tax time approaches, if you have noticed an absence of any of these forms you may need to contact the source directly to solve the problem. Employees can make a quick call to their HR departments and they can provide you with more information. If you do not receive your 1099-SSA in time, you can either complete an online request or call 1-800-772-1213 for a duplicate.

You will also be responsible for gathering:

• All proof of income from self employment
• Bank statements showing interest and earned income on all investments
• Receipts and paperwork documenting charitable contributions
• Proof of estimated tax payments including canceled checks
• Receipts proving qualified business expenses

Based on how complicated your finances are, all the previous information will be utilized to properly prepare your 1040, 1040EZ or 1040A tax forms.

Tax Preparation Tips

These essential tax preparation tips include:

• Time: Preparation is the best way to ensure that your tax return is done on time. Avoiding time pressures means you’re less likely to make a mistake.
• Second Opinion: Before signing and submitting your tax forms, a fresh pair of eyes should proofread your forms. That second opinion will act as a much needed safety net to ensure accuracy of your submission.

These simple measures will prove invaluable to your tax form preparation in the long run, happy taxes!