What Documents Do I Need for Tax

Before you start working on your tax return, read the tax preparation checklist below. And remember, if you`re married and filing a joint return with your spouse, you`ll also need all of the following information for them. Here is a summary of the tax documents and information you need. Deductions can reduce your taxable income, reduce the amount of tax you owe, or increase your refund. In general, you can claim the standard deduction, which is a lump sum based on your production status, or list deductions. When you enter deductions, you need information about: The documents you need for tax preparation depend on your situation. To help you prepare for your tax deadline or file your own tax returns, we`ve created a checklist to help you know which forms to bring. The IRS lists minimum annual incomes for different age groups and marital status. If your income has exceeded the minimum for your age group and marital status, you must file at least one basic income tax return. Many of these forms are not required each year to file tax returns.

For example, you will only receive the investment forms you may need to file your tax returns if you have had distributions or other activities. Tax identification numbers are mandatory items on your checklist. All taxpayers need the following to pay their taxes. While you don`t have to prove that you have health insurance, it`s helpful to have this information handy so you can easily check coverage if necessary. This can include your insurance cards, your insurer`s bank statements, a benefit statement, and even a W-2 showing your deductions for health insurance. It is also important to have all the documents on hand that can reduce the portion of your income taxed. This can either reduce the amount you owe if you have to pay taxes) or increase your tax refund. Then there are the credits on the tax preparation checklist, which are the most valuable cousins of deductions: they offer dollar-for-dollar reductions on every tax you owe. But as with deductions, you need documents to request them.

Here are some popular tax credits: Whether you prepare your own tax returns or get help from a tax advisor online or in-store, knowing what documents you have on hand can help you avoid tax filing mistakes and potentially reduce your tax bill. Keeping tax records in a safe place after filing can also be helpful when you are being audited. When the IRS or your state tax authority reviews your tax return, they may require records proving income and tax benefits when you return. Having this information in one place speeds up the process and ensures you don`t lose any of your deductions or credits. It`s also important to keep track of all the taxes you`ve paid during the year, as you`ll need to write them into your taxes in April. Unlike other categories of information you need to collect for your taxes, this list is relatively short and should be easy to track. If you have foreign bank accounts with a combined value greater than $10,000, you must file an FBAR with FinCEN, the U.S. Treasury Department`s Financial Crimes and Enforcement Network. Note that this must be filed separately from your federal tax return with the IRS.

Whether you file all your tax records with your accountant or use personal software to close your taxes independently, you can minimize stress and confusion by gathering all the documents you need before you sit down on the file. Appendix C shows whether you or your business made a profit or suffered a loss during the year. A gain or loss will be added or subtracted from your total income on your 1040. If you made a profit, you`ll have to pay payroll taxes (such as FICA, Medicare, Social Security, etc.) because an employer didn`t deduct these taxes from your paychecks. You were your own employer. If you have worked for yourself (full-time or part-time), you will still need to fill out a few forms. In addition to proving your identity and that of your family members, you must bring the following documents to an accountant: If you receive Form 1095-A, you will have to wait until you have your tax return. This form is the Health Insurance Marketplace Statement. Keep in mind that most employers don`t have to provide you with any information to prove you have health insurance, so you`ll need to show this information yourself if it becomes necessary. Although your employer must report your income directly to the IRS, your accountant will also need the information on your W-2 forms to complete your tax forms.

Deductions help reduce your taxable income, which usually means a lower tax bill. The key to claiming deductions is documentation – not only can it protect you if you`re being audited, but it can also reduce your tax bill by remembering what you need to claim. Collecting these documents can take time, but it can pay off, says Norm Blatner, CPA at Blatner & Mineo in Buffalo, New York. Read more: Capital gains and losses – What is taxed and what can I claim? Parents and caregivers should collect this information when reviewing what they need to file their taxes. Here`s a quick guide to IRS forms and/or personal records you`ll need for the most common income situations: Virtually everyone in the U.S. must file a Form 1040, whether they`re employees, freelancers, or investments. If you are self-employed or receive income from other sources, you must include this information on your tax return. If you received one of the following IRS forms in the mail, let your accountant know. Gather all documents confirming the money you received in the past year. I hope this tax document checklist will help you make sure you have all your documents on hand and ready when you submit them. The IRS needs to know exactly who is filing their return and who is covered by your tax return. To do this, you`ll need Social Security numbers and dates of birth for you, your spouse, and loved ones.

Tax credits are a one-to-dollar reduction in the amount of tax you owe. In general, you will need the following documents to claim potentially useful tax credits. Here are some brief examples of common deductions and credits for which you need documentation: Prepare a business tax return virtually or in person. Gather your documents and your tax professional will do the rest. » MORE: Check out the best IRS forms you need to know before filing your tax return The government offers a range of deductions and credits to reduce the tax burden on individuals, which means more money in your pocket. You will need the following documents to ensure you get all the deductions and credits you accumulate. Note that if the property you are selling is your principal residence – meaning you owned and lived in the property for two of the five years preceding the sale – you will not have to pay taxes up to $250,000 ($500,000 if you are married and deposit jointly) as a profit from the sale.