Even though deadlines are still a few months away, the tax season has already begun for many individuals as well as businesses. It can be a stressful time of the year, but filing your taxes is a fact of life that we all need to take care of.
When it comes to individual or business tax preparation, it’s critical to file correctly and punctually.
One of the keys to accomplishing this is to make sure that you have all the necessary documents for yourself, your dependents, or your business when it’s time to file your taxes. With so many different financial records and forms, however, how can you be sure which ones you’ll need?
Gonzalez & Arrambide’s professional team of vCFOs, CPAs, and other financial professionals are here to ensure you know exactly what forms you’ll need to file.
Because everyone’s situation is different, they may require various forms of support. However, here are the most common forms and information you’ll need for a typical person or business.
Which Documents Are Needed to File Your Taxes?
Everyone knows that filing your taxes incorrectly can lead to more problems down the line, which sometimes results in a financial nightmare! One of the best ways to avoid this is to make sure that you have the right documents prepared for when you file.
However, with so many different financial and other important records, it can be hard to know what exactly the IRS needs from you.
We’re here to go over a few of the most common documents you’ll need — but keep in mind that every person, family, or business is different. There may be documents unique to your situation.
Personal Identification Information
While it may seem obvious, there are a few key pieces of information you need for yourself and everyone else who will be on your returns, such as:
- Date of birth, social security/tax ID number, filer’s (including spouse if applicable) driver’s license information
Income and Investment Documentation
This type of documentation has a little bit more to it than your personal information and is often unique to each person or business’ circumstances. Key documents include:
- W2 tax statements, bank statements, stock or other investment documentation, and any type of 1099 Form
Of course, there are several types of 1099 forms, so you need to know which is right for your situation.
For families with children or other dependents, you’ll need to provide the correct dependent information such as social security numbers and dates of birth for all qualifying individuals. You can also report certain expenses like:
- Child/dependent care – necessary to report if you claim the Child or Dependent Care Credit
- Education – full-time students may qualify for some tax breaks
Finally, one of the most important things to remember when you file your taxes is to claim the appropriate deductions as they lower the potential tax payment you’ll have to make. Examples of commonly cited deductions include (but are not limited to):
- Medical bills, donations to charity, educational expenses, mortgage interest, and retirement contributions
Incorrectly filing taxes can cause more issues for you with the IRS. Of course, Gonzalez & Arrambide can help make sure you file correctly, and, if you are already facing an audit, we can assist with that as well.
Gonzalez & Arrambide’s Weslaco Accounting Team Can Answer Any Tax Question!
Though it’s important to have the correct documents available, that’s just one piece of the larger process. Rest assured that the Weslaco accountants, vCFOs, and CPAs at Gonzalez & Arrambide know what the residents of the Rio Grande Valley need to file their tax returns easily and effectively!