Tax Preparation Checklist

 

What You Need To Prepare Your Taxes

Online Tax Software

They say nothing is certain in life other than death and taxes. While I can’t do anything to help you with the death thing, I can tell you how income tax preparation software packages can help you save some money when it comes time to do your taxes.

Paying taxes is something that everybody must do and most people fear. We look at that April 15th deadline like it was the end of the world and usually try to avoid it at all costs.

 

I am here to tell you that with all the online income tax preparation software packages out there, you need not fear the IRS any longer.

 

All you need to do is get your stuff together then go to the program of your choice and you will be walked through the process of filing your tax return in and easy to follow, guided format.
 

Tax Prep Check List

 

Here is a basic list of things you will need to do your taxes. This is the same whether you are doing them yourself, using your local tax professional, or preparing them with online tax software. If you have all of the following documentation handy, you will zip right through your tax return.

Income Documentation

The first thing you need is your income documents. You will need your W-2 from your employer as well as statements for any interest you received from your bank, earnings from investments, and your state tax refund from last year.

Deductible Expenses

The second thing you need is your deductible expenses. If you are paying a mortgage, you will get a statement from your bank telling how much interest you paid. If you donated to charity, your church for example, you should get a statement from them documenting how much you donated. If you are paying off a student loan which has interest on it, again, you should get a statement.

 

You may also have other deductions that you may not have a receipt for. One example I can think of is Good Will donations which are deductible, but you won’t get a statement from them. You should have gotten a receipt of sorts when you donated, but you will have to estimate the value of what you donated.

Dependents

The last information you will need is information on your dependants. You will have to enter social security numbers and information for your spouse and kids in order to claim them and get the appropriate deductions. If you choose a good online tax preparation site, you will be able create an account that will save your information for next year so you won’t have to re-enter this information.

Once you have all of these documents, just go to the online income tax preparation software program you choose and start entering the information. The program you choose should walk you through filling out the information and e-file for you so you won’t even have to mail in your return. Easy as 1,2 3 as long as you have all your documents together.

For the record, I am not giving specific tax advice as recommend using software or a tax professional to make sure you are following all the applicable rules. This will help you stay out of trouble with the IRS.

Detailed Tax Preparation Checklist

• Your family and dependant’s Social Security Numbers

• Your bank account and routing number (to have your refund direct deposited)

• A list of the taxes you’ve paid during the year (estimated tax payment, sales taxes, property taxes)

• W-2′s and other income tax forms (1099′s, Schedule K-1, etc.)

• Homebuyer Tax Credit form 5405

• IRA Contribution Info

• Education information (tuition paid, student loan interest paid, etc)

• Home mortgage interest paid

• Medical expenses

• Job search and moving related expenses

•  Charitable donations

Posted in tax preparation checklist, February 22nd, 2009 . by admin
 

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