Tax Day is just around the corner, and it’s time to get organized before that deadline approaches. Below, we’re sharing six tips to help you prepare and get a head start on filing your taxes.
1. Decide which forms you’ll need
The forms you use to file your taxes can depend on everything from the type of job you have to the amount of money you make to whether or not you have children. Visit the IRS website to see all available forms and determine which is the right one for your situation.
2. Collect income information
Before tax time, you’ll receive information about the income you’ve earned throughout the previous year. Keep these documents organized and stored together to make entering your income information a breeze.
- W-2 forms from each employer
- 1099 or W-9 forms for contract work
- 1098 forms for mortgage interest deductions
- Documents for investment income
- Documents for rental property income
- Social Security benefit information
- Unemployment information
- Any documents related to miscellaneous income
3. Gather information for you and your dependents
When filing tax returns, you’ll need information about yourself, your income sources, and your dependents. Having this information on hand will make the process go much faster. These are some of the documents and pieces of information you’ll want to have ready to go when you start working on your tax return.
- Your Social Security number (and your spouse’s, if filing jointly)
- The Social Security number of any dependents
- Records of childcare payments
- Records of child support
- Records of alimony
- Marriage or death certificates
4. Keep your receipts organized
This is especially important if you’re self-employed or running a small business but is equally important for anyone who prefers filing with itemized deductions instead of standard. Keeping track of your receipts throughout the year will make it easy to ensure that you get all of the deductions possible.
5. Know the dates
Always verify the deadline to file your income tax return each year on the IRS website www.irs.gov. If you miss the deadline, file as soon as possible. If you’re owed a refund, you won’t face a penalty and you can still claim your refund when you do file. If you owe taxes, filing late means you’ll begin to incur penalties that will add up quickly.
6. Choose where to file
There are several options when it comes to where to file your taxes, whether you want to do it on your own or enlist the help of a professional. The first is to use a paper form, fill it out, and mail it in to the IRS. If you want to take some of the guesswork out of the process and get your tax refund more quickly, you can file through a service online. Finally, you can visit a tax prep company or hire a CPA to sort through your information and file on your behalf.
With a financial partner like Fremont Bank, it’s easier to find, organize, and use your financial information to maximize your tax returns. If you're enrolled in Online Banking, you can access your 1099-INT to find out if you earned interest on your deposit account and 1098 forms for your mortgage account.
Contact Fremont Bank today to get started on Online Banking.
Fremont Bank representatives do not provide legal or tax advice. Seek professional advice from your legal and tax advisors.