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9 Steps to Smoother Tax Filing

With the ever changing tax laws, which are4.  Non  Taxable  Income:
difficult to understand, we have put together
9 helpful hints to help you to be betterWhen gathering your above income information
organized and make your tax filing run moredo not forget your non taxable income. Here
smoothly.are a few examples of these: Child Support
payments, Welfare benefits, Life Insurance
1.  Don't  procrastinate:proceeds received due to the death of an
individual.
You will want to gather your information and
began reviewing it as soon as possible. Also,5.  Personal  information:
by reviewing last year's return for changes
in things such as; deductions, dependant'sYou will need to gather some personal
status, and income. In doing this step itinformation that will be required to file
will refresh your memory, so that importantyour return such as; security numbers and
deduction are not forgotten on this year'sbirth dates for any dependents you will be
return.claiming.
2.  Gathering  your  deductions:6.  Children's  income:
You want to review your current year'sWhile gathering your information to file your
expenses and gather anything you mighttax return, take a moment to review this
consider to be a deduction. Also, goinginformation for your children to see if they
through your checkbook, credit cardhave  any  filing  requirements.
statements, and receipts will help you better
locate those all important deductions. Let's7.  Scheduling  your  appointment:
face it the more deductions you have the
better. Here are some examples of expenses toYou will want to schedule your appointment
look for that you may have: Medical expenses,with your tax preparer as soon as possible to
Mortgage interest, Real estate taxes,allow ample time for any corrections or
donations, work related expenses, union dues,documents you will need to track down before
personal property taxes and any other itemsthe filing deadline and to avoid the last
that  you  think  might  be  deductible.minute  rush  of  filers.
3.  Income  Documentation:8.  Making  tax  payments:
Gather all the income documents you haveWhen making payments to the IRS you will want
received during the year such as: Form W-2to make sure that your payment is properly
(Statement of Wages), Form W-2 F (Gamblingidentified with the following information:
winnings), Form 1099-B ( Stocks and Bonds),Your name, Address, Social Security Number or
Form 1099-R (Distributions from pensions,your business ID number. Also, include what
Annuities, Retirement or profit-sharingthe payment is for including what tax year.
plans, IRAs, and Insurance contracts), FormMake individual payments; do not combine more
1099 (Interest, dividends, royalties), Formthan  one  payment  in  the  same  check.
1099-G ( State and Local income tax refunds),
Form 1099-B and Brokerage statements (Sales9.  Keeping  records:
of securities), and K-1s (Income and
Deductions from Partnerships, S Corporations,It is recommended that should keep your
Trusts, Estates). Review all these documentsrecords including bank statements, canceled
to make sure they are correct. If you noticechecks, income and deductions for at least 3
any discrepancies contact the issuer of theyears from the date of filing your return.
form immediately to get a correct form. IfThat is the statute of limitation set by the
you are unable to get the correction made youIRS for audits. By doing so that will help
will be required to attach a letter ofyou be better prepared in the event that your
explanation  with  your  return.return is selected for an audit.