|
|
|
|
Prepare for Your U.S.A. Tax Filing
Start organizing records for taxes. If the project seems overwhelming, make 30 minute appointments with yourself to do a little bit at a time. Each time you accomplish a task, remember to reward yourself with simple, inexpensive pleasures. This can be anything from taking 15 minutes for yourself to read or meditate, or visiting with friends and family.
#1 Gather W-2s, 1099s, income/loss records, and receipts for tax deductions.
#2 Go through old paperwork and receipts. Toss what is not needed for your personal or business tax returns and categorize the rest. Items that are not related to income tax deductions may be saved for one year in the event there are any payment/billing disputes. This includes cancelled checks, utility, credit card, and medical bills which do not document an eligible income tax deduction. Payroll, annuity payment, lump-sum, income, interest, and dividend statements and stubs can be tossed once you have verified the figures on the reporting forms of W-2s, and 1099s. With your tax return keep all documents reflecting income/profit, and expenses/losses. Include records/receipts of eligible tax deductions. Note: Generally, the IRS can audit back 3 years. In the event an amount of income was not reported, the IRS can audit back 6 years. In the case of fraud, there is no time limitation: they can audit as far back as they wish.
#3 If you participate in your employer's medical or dependent care reimbursement accounts (by the way an excellent benefit to use if you are eligible), make sure all your receipts are organized and claimed. Check with your benefit administrator for your deadline to request reimbursement.
#4 If you aren't organized this year, set up a quick filing system this month for the current tax year. It can be as simple as creating a file folder for income/expenses, and tax deductions, and another one for all your utility, credit card and household bills. If you participate in reimbursement accounts, set up a separate file for these expenses, such as a ' Medical and Dependent Care' reimbursement file. Each month file receipts and documents in the appropriate files.
This is a general record keeping guideline. It is not intended to be a legal resource for taxes and record keeping. If you have specific questions concerning your situation, consult with your tax advisor. More information on record keeping is available form the Internal Revenue Service (IRS). Request IRS publication 552.
|
|
 |
Disclaimer: You are responsible for your activity on the internet. These web pages are a convenience to provide links to Working Parents, LLC's favorite sites on the internet as well as a marketing resource for companies. Read our Legal Notice before accessing links on this site.