| With the ever changing tax laws, which
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| | are unable to get the correction made you
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| are difficult to understand, we have put
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| | will be required to attach a letter of
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| together 9 helpful hints to help you to
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| | explanation with your return.
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| be better organized and make your tax
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| | 4. Non Taxable Income:
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| filing run more smoothly.
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| | When gathering your above income
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| 1. Don't procrastinate:
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| | information do not forget your non
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| You will want to gather your information
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| | taxable income. Here are a few examples
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| and began reviewing it as soon as
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| | of these: Child Support payments, Welfare
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| possible. Also, by reviewing last year's
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| | benefits, Life Insurance proceeds
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| return for changes in things such as;
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| | received due to the death of an
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| deductions, dependant's status, and
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| | individual.
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| income. In doing this step it will
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| | 5. Personal information:
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| refresh your memory, so that important
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| | You will need to gather some personal
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| deduction are not forgotten on this
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| | information that will be required to file
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| year's return.
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| | your return such as; security numbers and
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| 2. Gathering your deductions:
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| | birth dates for any dependents you will
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| You want to review your current year's
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| | be claiming.
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| expenses and gather anything you might
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| | 6. Children's income:
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| consider to be a deduction. Also, going
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| | While gathering your information to file
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| through your checkbook, credit card
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| | your tax return, take a moment to review
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| statements, and receipts will help you
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| | this information for your children to see
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| better locate those all important
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| | if they have any filing requirements.
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| deductions. Let's face it the more
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| | 7. Scheduling your appointment:
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| deductions you have the better. Here are
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| | You will want to schedule your
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| some examples of expenses to look for
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| | appointment with your tax preparer as
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| that you may have: Medical expenses,
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| | soon as possible to allow ample time for
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| Mortgage interest, Real estate taxes,
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| | any corrections or documents you will
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| donations, work related expenses, union
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| | need to track down before the filing
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| dues, personal property taxes and any
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| | deadline and to avoid the last minute
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| other items that you think might be
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| | rush of filers.
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| deductible.
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| | 8. Making tax payments:
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| 3. Income Documentation:
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| | When making payments to the IRS you will
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| Gather all the income documents you have
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| | want to make sure that your payment is
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| received during the year such as: Form
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| | properly identified with the following
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| W-2 (Statement of Wages), Form W-2 F
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| | information: Your name, Address, Social
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| (Gambling winnings), Form 1099-B ( Stocks
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| | Security Number or your business ID
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| and Bonds), Form 1099-R (Distributions
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| | number. Also, include what the payment is
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| from pensions, Annuities, Retirement or
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| | for including what tax year. Make
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| profit-sharing plans, IRAs, and Insurance
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| | individual payments; do not combine more
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| contracts), Form 1099 (Interest,
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| | than one payment in the same check.
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| dividends, royalties), Form 1099-G (
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| | 9. Keeping records:
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| State and Local income tax refunds), Form
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| | It is recommended that should keep your
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| 1099-B and Brokerage statements (Sales of
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| | records including bank statements,
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| securities), and K-1s (Income and
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| | canceled checks, income and deductions
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| Deductions from Partnerships, S
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| | for at least 3 years from the date of
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| Corporations, Trusts, Estates). Review
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| | filing your return. That is the statute
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| all these documents to make sure they are
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| | of limitation set by the IRS for audits.
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| correct. If you notice any discrepancies
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| | By doing so that will help you be better
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| contact the issuer of the form
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| | prepared in the event that your return is
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| immediately to get a correct form. If you
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| | selected for an audit.
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