What documents will you need when filing taxes?

Whenever the time comes to filing taxes, you start collecting essential documents you will need. But having a checklist is necessary. Knowing about these things will save you time. So, we have prepared a list of the materials you will need. Having this info will also help you in making a Tax Refund as well.

What Personal Information you will need?

So, we will begin with personal information. You will need these documents when filing taxes. First is the last year’s tax documents, state return as well as federal retune. They are not mandatory, but it’s good to have them for additional information which might help you this year.

The social security number for every person in your family. Your spouse, children, and if there any dependents as well. It includes elderly parents, as well.

what Documents you will need when filing taxes

Income Documents you will need

Now, we will cover the income documents you will need. These documents will help you to confirm the income you had in the previous year. From your employer, you will receive a W-2 Form by Jan 31. So keep an eye on your mailbox. Maybe you will get a paper form or a pdf form.

The following form you need is 1099 forms. Now there are a lot of types of 1099 forms. You need to look carefully at which form you will need. Let’s say you are doing contract work; then you are going to need form 1099-MISC. If you are a broker, then you will need a 1099-B for it. If you have got dividends, then you will need to get the 1099-DIV form. For investment earnings, form 1099- INT is required. If you are earning via Paypal or Amazon, then get 1099-K form. These are documents you will need when filing taxes.

What Forms you will need for Deductions?

In simple words, Deduction means reducing your taxable income. It means lowering your tax bill as well. So, to make sure to get a deduction, the proper documentation is the only way.  What are the documents you will need? If you ever it right, it may even help you in getting a Tax Refund.  You should know there are many forms in Deduction. Which one you are going to need depends upon your income, your profession. So, we are going to give out some examples. Following the example, you can get your deduction paper. Now, let’s get started.

The 4 forms you will need?

The first form is the Retirement Account Distributions. There are two options to do it. Whether you can use an IRA contribution or get your retirement account, however, make sure you are investing it in within the contribution limit. Get information about it if you are not already a contribution to your retirement.

The second is related to Educational Expenses. If you are having debt related to educational purposes, like a student loan or tuition fee you have paid, you can claim the deduction. But you will need a separate form for it, which is Form 1098-T.  For student loans, you will need to form 1098-E.

The third is via Medical Bills. If you had medical bills, then it could help you in getting deductions. But there is a condition here; your medical bills need to more than 10% of your gross income. But it is not necessary for every taxpayer. It depends upon the pay.

The fourth is Mortgage interest and property taxes. However, it depends upon the property. If it includes amount escrowed for property taxes, you will need form 1098 from your lender. If the person has not sent it, then get it. It will show the amount you can claim with Schedule A. Check out wiki for more info.

What other deductions to keep in mind?

If you had done any charity, then you can claim deductions on it. However, you will need to present receipts for it. IRS won’t allow requesting if you cannot submit the evidence for it. So, offer the receipts; the IRS will verify it. Then you will get the deduction.

Now, as we said before, few of the firms depend upon your nature of the job. For example, if you are a teacher or an educator, then you can claim classroom expenses for it. However, the amount you could get up to $250 only.

Now, there are some local and state taxes, which you can deduct for it. Even on sales, you could get a deduction. You could get up to $10,000 tax off on property tax. In a way, they could help you with the tax refund as well. But as we said before, you will need receipts to claim for it.

This article guides you on what documents you will need when filing taxes. Need help with Tax Calculation, Check out our article on Tax Calculator. Also read more about Tax Relief in our previous post

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