Tax season is officially underway! Remember that although the deadline isn’t until April 18 this year, you still don’t want to put off doing your taxes any longer than you absolutely have to. Whether you’re planning to prepare your own tax return this year or thinking about visiting a tax professional for the first time, there are some documents and forms you should gather up before getting started. The following can make the process of filing individual taxes in Sacramento, CA much easier:
- Personal information: If your tax return will cover only yourself, this is as simple as knowing your Social Security number and date of birth. If you’re married filing jointly, have children or other dependents covered by your return, you’ll need the same information for them. (Always remember to keep Social Security cards in a secure place, such as a safety deposit box.)
- Income records: The most common tax document you’ll receive, either in the mail or electronically, is probably form W-2. If you work for one or more employers, each employer should have provided a W-2 by the end of January. In addition to your W-2s, you’ll need any other tax documents related to your income. These might include records of unemployment income, alimony, Social Security benefits, income earned as a contractor and other miscellaneous income.
- Other records that impact your income: A number of factors can impact the amount of your refund (as well as the amount you owe) by adjusting your taxable income. If you moved during 2015, you may be able to deduct moving-related expenses from your taxes. Money paid into an individual retirement account or pension, student loan interest paid, alimony paid and expenses incurred as an educator can all be deducted from your taxable income. Not surprisingly, you are advised to hang on to your receipts throughout the year to ensure accurate recordkeeping.
- Information related to deductions: Receipts and records will also come in handy if you’re planning to itemize deductions. It’s possible to deduct all kinds of expenses from your individual taxes in Sacramento, CA: adoption expenses, education expenses, healthcare expenses not covered by insurance, charitable donations, childcare costs—the list goes on. Speak with a tax professional if you’re thinking about itemizing deductions to ensure you have the records you need in order to get the best results possible.
- Records of taxes you’ve already paid: No one wants to overpay their taxes. Property taxes, real estate taxes and state and local income taxes that you’ve already paid should be factored into your return.
- Bank account information: Finally, don’t forget to have your bank account information at hand when preparing your taxes. Having your routing number and account number can make setting up direct deposit very simple, which ensures a shorter wait time for your refund.
As the tax deadline approaches, you’ll likely notice an increasing sense of urgency surrounding your taxes, particularly if you’re the sort to put off important and potentially stressful things for as long as you possibly can. If you’re having anxiety regarding your 2015 individual taxes in Sacramento, CA, consider scheduling an appointment with an accountant to ensure accuracy and timeliness when it comes to your return. Contact Yoder & Co., CPA today to learn more about how we can help.