Filing taxes every year is not everyone’s cup of tea. Reasons for this can vary, yet unpreparedness and plain old not understanding the tax process are typical responses. But suffer no more, because luckily for you, there are professional tax services out there—like Yoder & Co., CPA—who are ready and willing to give you a helping hand this tax season and beyond. No matter what, it’s important that you know a little about your taxes. To get started, let’s take a look at some frequently asked questions concerning tax preparation in Sacramento, CA.
What documents do I need to keep to do my taxes?
Whether you are planning on filing your own taxes or hiring a CPA, there are a number of documents you will need to have in your possession come tax time. This includes detailed records of your income, expenses and any other individual or small business information you typically divulge on your yearly tax returns. In the event you’ve gone through a major life change—like a death, birth, adoption or real estate purchase—it’s a good idea to keep these records on hand should you need to document additional information on your taxes.
A good record keeping system can make doing your taxes a bit less stressful, and having the proper financial information in front of you can even save you money. Moreover, these records will prove beneficial in case you are audited.
What pieces of paper should I hang onto throughout the year?
For the current tax year, you need to hang onto any papers regarding your income and deductible expenses. As mentioned above, these are the types of records that will help you should the IRS send an auditor to knock on your door. There are quite a few relevant tax records and receipts, particularly related your income—this includes your total wages, interest, dividends and oftentimes health account contributions. If filing jointly, you will also need your spouse’s income information. Examples of other records to keep are medical expenses, charitable donations, business expenses and deductible education costs.
Are there any other types of tax records I should keep?
Yes! You need to write out detailed and accurate records for the things you acquire or buy or do that are worth a pretty penny. Keep these tax records and receipts to prove how much you paid for something you are liable to sell later on:
If you are invested in working with a professional service for your individual or small business tax preparation in Sacramento, CA, don’t hesitate to contact the skilled and knowledgeable team at Yoder & Co., CPA. Give us a call today!