Tips for Preparing Your Taxes
It ranks right up there with death as an unavoidable part of life, but tax preparation in Phoenix AZ doesn’t always have to be painful. If you are prepared for your appointment with your CPA, you will be able to get through it well, and it may not be much worse than a visit to the dentist. Thorough preparation will allow your CPA to quickly and easily complete your return, and if you are getting a return, that makes good sense.
Of course, many of the things that should be on your checklist as you prepare your documentation will be unique to your personal situation. There are some things, however, that everyone needs in order to move the process smoothly along. By gathering these things first, you will be ready for that initial interview with the accountant who performs your tax preparation in Phoenix AZ.
Unless you have had the same CPA for a number of years, you will need your driver license and your social security card to verify your identity. Because of all the laws involved, your tax accountant is required to ask for identifying information to be sure that you really are who you say you are. The first type of documentation you will need is a copy of the federal and state returns that were filed the previous year.
All of your income information will be required for tax preparation in Phoenix AZ. This means that W-2 forms from a regular employer and other specialty forms such as the 1099 forms which are issued for any type of income that you earned during the year. If you are an independent contractor, you should have received this type of form.
If you plan to itemize deductions, you will need to include mortgage interest 1098 forms as well as records of educational expenses such as interest on student loans. Along with these deductible items, you can include receipts for donations that you make to charitable organizations. Remember that your children can also be included as deductions, up to $3000 each.
If you are self-employed, you will want to bring information on income and expenses as well as business use of your home, if you work from there. Remember that canceled debt is taxable, as are unemployment benefits and severance pay if you were laid off from a job.