It is difficult to consider that the tax season 2017 is almost here, and you’ll be getting the data you require to settle up your 2016 tax return with the US government. Take advantage of the tax benefits to available throughout of the 12 year.
The first thing to consider is getting prepared. Collect all the tax related credentials in one place and when the time comes, you will have lots of things previously arranged. Tax filing requires lots of things that counts in making the whole process smooth and easier.
The year 2016 could pass very quickly, leaving many businesses vulnerable for filing their tax returns after the end of this year. You can be prepared and keep away from unnecessary stress by following these tips to set up for the tax season 2017.
Tax Documents That You Must Have
From this time until the start of 2017 tax submission season, you may get a heap of documents that will be very important to your tax returns. It is way important that you install a filing system. This section includes business receipts and expenses, charitable contributions, tax forms, copies of IRA contributions, child care expenses or whatever that can be tax deductible goes into this category.
Right here are a number of the documents that you must have:
W-2 Earning Statements
The W-2 form also revealed the exact amount of state, federal and some other taxes withheld from your paycheck. As a worker, your given details on W-2 form are essential when preparing for your 2017 tax return.
A 1099-Misc tax form is used for freelancers or independent contractors. Especially this form is used for anyone who is working for you, but is not your employee. This form should be used any time when a non-employee generates over $600.
Mortgage Interest Statements (Form 1098)
The form 1098 or mortgage interest statement is an Internal Revenue Service tax form which is used to document mortgage interest that a lender obtained all over the year. The term “mortgage interest” is the interest that a borrower pays on a loan obtained by real property. This amount can comprise the points paid by the borrower when purchasing prime property. The form 1098 consists of mortgage insurance premiums, mortgage interest, overpaid interest, repayments and points.
Retirement Account Distribution Statements (Form 1099-R)
Form 1099-R reports the distribution of retirement benefits including annuities, pensions and some other types of retirement plans. There are different types of 1099-R forms, which include form CSF 1099R, CSA 1099R and form RRB-1099-R.
Brokerage Account Statements
Brokerage account is a type of taxable account that you open with any stock broker or stock brokerage company. You deposit money in this account by linking it to a checking or savings account or by writing a check. Once this amount is deposited, you can use the amount to get various types of investments. The statements of this account are also an important factor in filing taxes.
Form 1095-A If You Purchase Health Insurance Through The Healthcare Marketplace Exchange
If you purchased health insurance through the healthcare marketplace such as healthcare.gov, you need 1095-A form.
Taxpayers who are cash based should evaluate income and expenses before 2017 and find out if an item of income can be overdue until the following year or in case any item of expense stepped up to the recent year.
List Your Tax Deductions
Find out whether or not listing all your tax deductions makes any sense. The standard deduction is constantly less complicated, however for some taxpayers; listing pays off with a decrease tax bill. Itemize and review your tax deductions to avoid paying more taxes than you owe. Several tax deductions are eminent, for instance, charitable donations and mortgage interest. Taxpayers frequently fail to notice some miscellaneous expenses that are tax deductible if the total amount sums up to 2% of your AGI. These types of tax deductions consist of tax-preparation expenses, job-search costs, business vehicle expenses and professional outstanding dues.
The e-filing or electronic filing works well in case you expect a tax refund. As the Internal Revenue Service processes the tax filings electronically quicker as compared to manually, you can be refunded in three to six weeks earlier. If you have organized all your documents, get ready to file your 2017 tax returns electronically.
If you need any additional help regarding your small business tax filings, you can contact Small Business Administration, Internal Revenue Service or you can hire a professional tax expert.