The new year means it's time to start gathering all of that dreaded documentation to send to good old Uncle Sam! Taking just a few simple steps right now will make your tax filing far easier and more accurate.
Keep it together. Make a quick list of all the documents or statements that were needed to complete your return last year—or call your tax planning professional for a checklist. As you receive tax documents in the mail, grab your checklist, and mark the item as received. Then, keep all of the tax documents together in a large file or envelope marked "2011 TAXES."
Do the math. According to the IRS, the most common mistake on tax returns is bad math—from transposed numbers to downright incorrect data. And with one form leading to another, those errors can make a huge impact. Even if you use tax software, you're not off-the-hook—since it only adds the numbers YOU put in. Double-check entries carefully.
Every last cent. The IRS receives copies of your Form 1099 earnings each tax season. So, they know how much you make in interest and dividend income, and they will use that info to double-check your filing information. Make sure you collect all your earnings statements and document them on your return.
Sign on the line. It sounds almost silly, but forgetting to sign a return is actually a fairly common oversight. And the IRS won't process a return that doesn't have a signature. So, make sure you sign to avoid resubmitting your paperwork and possibly paying late-filing fees.
By following the tips above, you can help eliminate some of the frustration from tax season, as well as make sure you're on track for the coming year.
|
No comments:
Post a Comment