Tax Preparation Checklist
Tax season is officially upon us. This means it’s time to start thinking about how you will prepare your tax return. If you’re looking for free tax help, though, you may be wondering if there are any tax prep near me options available in Akron, Ohio.
Fortunately, the VITA program offers free tax help to eligible individuals. IRS-certified volunteers are crucial in providing free tax assistance through the VITA program. There are some excellent local tax preparation services to choose including Akron Income Tax Co. In this post, we’ll take a closer look at tax preparation. So, if you’re ready to get started on your taxes, keep reading.
Are you looking for a Tax Preparation checklist of what to bring to your appointment? Whether you’re a first-time tax filer or have, we’ve got you covered. Check out our list of what to bring to your tax prep appointment. And find the nearest tax prep near my location that can help you.
How To Find a Tax Preparer?
Once you have decided it’s time to find a tax pro, consider a few things. First, ask other taxpayers, such as your friends and family members who have been through the process recently, for recommendations from their tax preparers.
You can also try searching for an online free tax prep service or checking out your phone book. IRS-certified volunteers provide free tax assistance at VITA and TCE sites. These programs offer free tax preparation assistance for eligible taxpayers. For the location of a tax preparation company that offers free tax assistance here. Finally, make an appointment to meet with the tax service pros, and bring all of your personal information, income statements (W-2s), business information, etc., with you. We can be your Tax preparation firm with tax prep fees of $130.
How Long Does Tax Prep Take?
Once you have arrived at your appointment, the length of time it takes to find the best tax preparers will vary based on the complexity of your return. If you have a small business, it may take longer, but usually, it takes less than an hour. However, a typical appointment with a tax professional generally lasts about an hour. Some people
Tax Prep Checklist
Before you leave for your appointment, make sure to have all of your financial information with you. Here is a list that may come in handy for own taxes:
Personal Information
The Volunteer Income Tax Assistance (VITA) program also provides assistance to limited English-speaking taxpayers to help them navigate the tax preparation process.
Last Year’s Tax File
Last year’s taxes are an essential refresher for you and can be a starting point. If anything was missed or made on previous tax returns. But, of course, you should also still keep copies of your federal tax form and any applicable state paperwork from last season!
Your Social Security Number
The first and foremost thing that you need is your social security number. You may also need this information for the W-2 forms if you work independently or file a business tax return.
Your Spouse and All Dependents
Don’t forget to bring your spouse’s social security number or each dependent’s. You may also need their birth dates for the return.
Income Information:
When paying your tax, your income is a vital element.
Your W-2 Form(s)
Make sure to bring the most recent forms from any employers you have worked for and those from any side jobs or freelancing positions that may have been done during the year. If you haven’t already received a form, ask the accountant when W-2s will be ready.
Interest, Dividends, And Capital Gains
If you have had interest or dividends from any investment account (i.e., checking, saving, 401k), these forms are necessary to get accurate tax returns. Likewise, if you’ve had capital gains like the sale of stock or property, bring these documents along as well!
1099 Tax Forms
These forms are also helpful when determining your correct tax. From self-employment to freelancing, having these records will let you know what needs to be included in your taxes. Get all 1099s if you received them in the past year.
Business and Financial Documents:
If you have a business of any kind, there is paperwork that must be done to file your returns correctly. This includes documents for yourself and any other qualified individuals in the company who may have been filing in previous years.
This information can include:
Schedule C or E: Business or Rentals
These schedules provide additional insight into your business income from any sales made last tax season! These figures will be recorded on line 12 of your tax return under self-employment income.
K-1s, 1065s, and 1099-MISC
These forms are mainly for people with a business who have more complex returns or receive a lot of money from their business. You will most likely see the form for any capital gains from stock sales if your small business holds onto stocks for at least a year. If you have received these types of income, be sure to bring them along!
Miscellaneous Documents:
There are also a few other documents that can help taxpayers to get started on preparing their taxes.
Home And Vehicle Information
If you bought or sold any property last year, bought a new vehicle during this tax season, or are now paying interest on a new mortgage, please bring this information with you. If you don’t have this paperwork already, ask the accountant how it can be obtained!
Medical Expense Deductions
If your family has had an increase in medical expenses over the past year (such as insurance premiums) that went unreimbursed by your employer. In that case, you may want to consider asking for documentation of these expenditures if they were significant enough. These allowable expenses can often reduce the tax rate owed by an enormous percentage!
As mentioned above, if there have been any significant medical expenses in the last year, these deductions should be considered when filing. However, be aware that medical expenses must exceed 10% of your adjusted gross income before you can deduct any of them. So, if your AGI was $40,000 for this past year, be sure to have more than $4000 of medical expenses in order to have a chance to use this!
Charitable Contributions
Having charitable donations deducted from your taxes each year is a great way to save money on your overall bill. You can deduct a certain amount even if you file a short form. Of course, you should still keep all documents filed throughout the year. Documentation for charitable deductions is usually accepted until you file your Income-tax returns. So, if you have any documents still on hand, it’s best to bring them with you!
Other Deductions:
When filing your tax returns, you can often find some that can help lower your taxable income. Some common ones include:
Student Loan Interest
If you are paying back student loans from past years, be sure to take advantage of the interest you paid! The maximum amount allowed is $2,500, but any paid interest can get you closer to lowering or eliminating your tax bill. Any documentation on the loan should also be brought along with its corresponding paperwork so that this deduction can be properly recorded.
Retirement Contributions
If you’re planning on filing as a single taxpayer between 50 and 70 years old in January, be aware that there is a credit for those making contributions into their retirement accounts. This applies to anyone who made pre-tax contributions into an IRA or 401k. The maximum credit is $1000 since it has been scaled down due to recent legislation changes. Make sure you keep all documentation about these contributions because the amount will need to be calculated based on this information alone.
Tax Credits:
Everyone likes credits because they directly reduce the amount of tax you owe. But, as always, when filing, make sure the tax service can claim any credits that apply to you. Some commonly overlooked ones are:
Child Tax Credit
Every child would qualify for a credit on your taxes if under 17 during the tax year! However, be aware that this is a ‘non-refundable’ credit, so if it brings your total below zero, it will not get refunded to you.
Earned Income Tax Credit (or EITC)
This one is often overlooked by people who didn’t qualify or were unaware of the credit in previous years. This applies specifically to people who have low incomes and have at least one qualifying child. The EITC can often get you a nice refund from the IRS, so make sure to include it!
American Opportunity Credit
This credit is available for college students and older people who are currently enrolled in school or graduated during the tax year. The credit has been reduced due to recent laws and caps at $2,500 per student. If your child will graduate this year, there’s still time to take advantage of this credit!
Moving Expenses
Moving expenses can be deducted from taxes if you moved within the last tax year and met certain criteria (listed in detail here). Documentation about these expenses should always be brought when filing taxes so this deduction can properly apply. The deductible amount is capped at $3500 per adult, and any excess can be applied to the following year of taxes.
Tax Payments:
Now that you know how much you owe, include the proper amount of tax payments on your return. However, be aware that if you are underpaying, then there is an estimated penalty for not paying enough. If unsure about the rules surrounding this, it’s best to talk to a professional who can help! Lastly, don’t forget about including any interest paid on back taxes with the total amount due.
Signing the return:
Finally, it’s time to sign your simple returns! Don’t forget that a signature is needed on both paper and electronic returns. If filing electronically, make sure you sign using an acceptable method!
