There are many things you can do before you file your taxes to help make the process quicker and easier. The following steps will help you get organized and ready to file your taxes.
Collect Important Documents
There will be a variety of documents you’ll need filing taxes. Make sure you have your W-2 form if you had a job, the various 1099 forms reporting additional income you received, form 1098 to report any mortgage interest you paid and form W-2G if you had any gambling winnings.
Gather Receipts
The receipts you need depend on whether you claim the standard deduction or if you itemize your deductions. You will want to choose whichever option provides you with the largest write-off and to know that you will need to add up your itemized deductions. Be looking for receipts that include larger charitable contributions, medical costs not covered by any insurance or health plan, property tax and expenses related to investments.
Have Personal Information Listed
While you may feel you already know all the personal information you will need, there may be some additional pieces you can use while filing that you might not have memorized. You will need not just your own social security number but also the social security numbers of all the dependents you are going to claim. If you have a vacation home or rental property, have that address written down. If you sold any property within the past year, write down the dates you bought and sold it, the amount you originally paid for it and how much you received from the sale.
Have a Financial Advisor Help You with Tax-Smart Investing
Once you have finished getting everything you need organized for your taxes, it’s a good idea to find a financial advisor who can help you take full advantage of tax-efficient investments by holding them in accounts with the appropriate tax treatment. If you are interested in getting help with tax-efficient investing, our team at PR Wealth is happy to consult with you.
Contact us today for comprehensive wealth management solutions and services.
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