It’s Tax Time. What do you need to do to get ready?

Its tax time. What do you need to do to get ready to get your taxes prepared? The first thing you will need if you are using a new tax preparer is last year’s tax return. Depending on how much you made last year there are penalties for not paying enough in throughout the year. The rule is that you need to pay in at least 90% of what you paid in last year if you made the same or more in advance of doing your taxes. So, if you owe more than $1000 in federal taxes this year and you paid in more than $900 for the entire year you are in the clear! If you made as much as you did last year but paid in less than 90% there could be a penalty. This rule is normally true, but the IRS actually changed it to 85% for 2018 only because so many people either didn’t change their withholding or didn’t withhold enough.

                If you’re seeing a new tax preparer this year, he or she will need to see you and your children’s Social Security cards. As a tax preparer the IRS ask’s us if we have seen it or not and if we have seen your driver’s license and I always have to answer honestly, or I could risk my ability to prepare taxes returns.

This is a short list of more things you will need

Name, Date of Birth, and Social Card

What is your current address?

What do you do for a living?

Did you live in your home state all year?

Are you single or married? Did your marital status change before December 31st of the tax year?

Were there any changes in dependents?

Did you have any child or dependent care expenses? Please include care provider’s name, address, EIN, and amount.

Did you have any Child Dependent Care for day care or summer camps that were not overnight?

W2’s and any other income from a small business or contract work that would supply you with a 1099.

Did you buy or sell stocks, bonds, mutual funds or other investment properties?

Did you buy, sell or refinance your home?

Mortgage interest you paid + escrow you earned + Property tax.

Did you donate money, household goods, cars or stock?

Did you incur any tuition or continuing education expenses?

Proof of health care in 2018 1095 A, B or C Did you have health care all year or only a portion?

Did you pay out of pocket for doctors or prescriptions? How many medical miles did you drive?

Did you receive any of the following IRS documents? Form 1095-A, 1095-B, or Form 1095-C? If so, please send.

Do you own or have a controlling interest in foreign financial institutions, businesses or investment funds?

Do you want to file your tax return electronically? Can your state either deduct the amount owed or direct deposit your refund into your bank account?

For direct deposit, please provide your bank name, routing number, and account number.

There are probably a few more things you could be asked for but this is a good start.

We wish you all the best in getting your taxes completed. Give us a call is you need help.

James Darle Jones (410) 457-7331