We’re turning the calendar to a new year! And for
most people that means turning over a new leaf too. Are you with the majority
of Americans who will include healthy habits alongside better organization as a
few of your New Year resolutions? I don’t know about you but after trimming the
tree, I certainly need to turn my attention to trimming the waistline. And making
room for all those new gifts will require a bit of creative organizing (and
tossing out – don’t tell the kids).
One area to organize this year that might payoff
faster than any of those other New Year resolutions is tax preparation. You can get a jumpstart on those resolutions by
organizing the tax paperwork you’ll need to file. After all, when you have
everything together it makes filing easier and ensures you don’t miss out on
any deduction you qualify for. And if you get a refund, the payoff is worth it.
First step, find a folder or envelope to hold all
the information and then find a safe place to park it. As you run across items,
such as Salvation Army receipts, you know right where to place them. Here are a
few items to pull together:
- Social Security numbers – yours, your
spouses and your dependents
- Tax ID number of your child care
provider
- W-2 from your employer – you should have
this by January 31
- Form 1099-MISC – if you worked as a
contractor
- Form 1099-INT – for interest
earned on most savings accounts
- Form 1099-DIV - for each
stock, mutual fund or money market account. (If you used a broker, the broker
transactions will be sent on Form 1099-B.)
- Form 1098 – mortgage
interest paid for each home you own
- Receipts for any state and
local income taxes paid (such as your home, car, boat, etc.)
- Receipts for any charitable
donation
- Mileage you traveled for volunteer
work – you can’t claim your time, but you can deduct your mileage. (Use your
calendar as documentation, mark the mileage driven on the days you volunteered.)
You did it! You’ve gathered all the
necessary documents. You’re good to go. Just walk on into a Liberty Tax office,
where you get the fastest refund, and you’ll be able to cross tax preparation
off your resolution list.
It’s
been said that organization clears the clutter of the mind. Doesn’t the anxiety
just melt away? Sigh - if only those stubborn pounds would!