Don’t get buried in the snow!

It’s that time of year again. Tax season.

For many people, taxes are frightening, much like a blizzard. When viewed from the perspective of far off in the future, they are like watching a snowstorm from inside your warm house. You think, I don’t care and I’m not worried. It’s not affecting me right now (taxes are far in the future and the snow is outside!)

Things this year could be a bit chaotic. January kicked off with a partial government shutdown (many IRS employees were furloughed. Additionally, The Tax Cuts and Jobs Act made significant changes to our tax code. While most people will benefit, a few may not and most will find filing very different this year as forms are removed and new ones added.

But it’s time to go out in the snow… it’s 2019 now and we need to be prepared. Let’s see how we can avoid being buried.

First off, take a deep breath and relax. You will have quite a few documents to gather so there’s no point in getting stressed out.

Whether you do your own taxes or you have someone prepare them, the papers needed are the same.

Here is a very basic checklist to start you off:

·         Legal name/Social Security Number/Date of Birth/Address - for everyone on your return

·         W-2 (for every job you worked for someone)

·         Profit and Loss Statement (if you worked for yourself)

·         Vehicle information and mileage if you used your car for your own business

·         1099-G for unemployment (yes, it is taxable)

·         Social security statements

·         any statements received for dividends, capital gains/losses etc

·         mortgage interest statement

·         charitable donations

·         student loan interest

·         if you expect to receive the Earned Income Tax Credit (with children), have some sort of document showing the children live with you (school or medical records etc)

·         Rental properties – every expense associated with the property (& all records and receipts to go with the expenses)

If you have other potential issues, such as cancellation of debt, gambling winnings, etc, make sure to discuss them with your tax preparer to ensure that everything is in order.

Training Yourself

AM I AN EMPLOYEE OR AN INDEPENDENT CONTRACTOR?