I'm proud to present you with a free e-book giving you 7 steps to real tax planning. I've included the first step here so that you can see what you think. If you want to know how to get the rest of the 7, steps go to www.irs-tax-levy-hq.com and follow the instructions there.
Step 1 - Pre-filing preparation:
Before you even begin the process of filing your tax return, and hopefully getting a refund check, you need to make some preparations. The first thing you will need to do is to get all of your paperwork organized and sorted.
How much paperwork you have to get together depends on your filing status, what deductions or credits you have, and whether you're filing personal taxes or business taxes.
If you were employed for the tax year, you will of course need your W-2's from any jobs you had during the year. Most of you younger taxpayers only have to worry about the W-2's, as you usually don't have any other assets or investments that you need to report on.
If you have deductions or tax credits that you can claim, you need to get all of that paperwork, as well as any receipts or invoices proving that the deductions and/or credits are legitimate. If you claim a substantial amount of deductions and credits, then you are more likely to get audited, and you will need proof to back up your claim.
Small Businesses Tax:
Being a small business owner or independent contractor is a bit more complicated. You still need to get together all of your paperwork and receipts to get any deductions or credits. You have to make sure that you have all invoices for goods and services you made money from over the year, so that you can report your gross income correctly on your form 1099. You also have to make sure you have been up to date on your quarterly 941 payroll filings. Speaking of payroll filings, you also need to make sure that you've taken the correct amount of taxes out of your employees' paychecks so that their taxes come out correct.
Once you have made sure you've gotten all of your paperwork together, it's time to start filing your taxes.
Now you have the smoking gun... Use it!
Labels: Tax Filing