How to Make Taxes Less Taxing…

Getting organized for your taxes can be easy as a three-folder system.

Folder A:  Income & Personal Information
Folder B:  Expenses & Deductions
Folder C:  Investments & Taxes

Don’t delay getting organized by going out and buying color-coded folders and special labels – plain manila folders will work just fine.  Print out the checklists below and attach to the front of a folder to get started with collecting all the items you need at tax time.

FOLDER A:  PERSONAL INFORMATION & INCOME

PERSONAL
__ Social Security numbers and dates of birth for everyone listed on your return

INCOME
__ W-2 forms for you and your spouse
__ All 1099 forms reporting additional income
__ Alimony received
__ Business income – profit/loss statement, capital equipment info
__ Rental property income
__ Miscellaneous income:  jury duty, winnings, Medical Savings Account, scholarships

ADJUSTMENTS TO INCOME
__ 1098-E  form for student loan interest paid or loan statements for student loans
__ 1098-T form for tuition paid for post-high school)
__ Documentation of IRA contributions made during the year
__ Receipts for any qualifying energy-efficient home improvements (solar, windows, etc)
__ Records of Medical Savings Account (MSA) contributions
__ Self-employed health insurance payment records
__ Alimony paid
__ Keogh, SEP, SIMPLE and other self-employed pension plans

FOLDER B:  EXPENSES & DEDUCTIONS

EXPENSES
__ Child care costs including provider’s name, address, tax ID, and amount paid
__ Education costs:  Form 1098-T, education expenses
__ Adoption costs including  SSN of child; records of legal, medical or transportation costs
__ Records of home business expenses, home size/office size, home expenses
__ Rental property expenses
__ Vehicle license registrations fees based on value of vehicle
__ Accountant’s fees for preparing last year’s taxes
__ Unreimbursed job-related and job-search expenses: transportation, lodging, meals, classes
__ Records of moving expenses

DEDUCTIONS
__ Forms 1098:  Mortgage interest, private mortgage insurance (PMI), and points you paid
__ Charitable donations (itemized if exceeding $500)
__ Medical and dental expense records (if exceeding $10,000)
__ Casualty and theft losses:  amount of damage, insurance reimbursements
__ Gambling losses as well as investment losses from previous years

FOLDER C:  INVESTMENTS & TAXES

DEDUCTIBLE/TAX-DEFERRED INVESTMENTS
__ Investment interest expenses
__ Roth account statements & contribution records

NONDEDUCTIBLE INVESTMENTS
__ Foreign bank account information
__ IRA contributions

TAXABLE INVESTMENTS
__ 1099-INT, -DIV, -B, or K-1s for investment or interest income

TAXES PAID
__ State and local income taxes paid
__ Real estate taxes paid
__ Personal property taxes
__ Auto excise taxes
__ Estimated tax payments made during the year if you are self-employed
__ Prior-year refund applied to current year and/or any amount paid with an extension to file