Tax season may be everyone’s least favorite season, but it’s one that most of us have to deal with and these tips will help you get on top of things.
Every tax filer’s situation is unique, but all taxpayers have a similar experience. This is because the IRS demands that you give them certain information from nearly everyone. You may think the happiest thing about taxes is Taxman by the Beatles–and that may be true–but filing taxes does not have to be an ordeal that makes you want to pull out your hair. If you are prepared and organized, filing your taxes can be tolerable. Here are a few tips to get you organized for tax season.
- Don’t Forget Social Security Numbers
If you file your own taxes, you can skip right down to #2. If you drop off all of your paperwork to an accountant’s office, make sure that your social security number is in there, as well as your spouse’s if you file jointly.
- Use Taxes to Reduce Taxes
Homeowners get a way to reduce what they will pay to the IRS by claiming real estate taxes as a tax deduction. If you use an escrow account to pay for your annual real estate taxes, your Form 1098 will tell you the amount. There are also local state and income taxes that you may deduct as well.
- Income Tax
In order to be ready for tax season, you will need your Form W-2–sent out in January–which is normally provided by every employer you had the previous year.If you’re an independent contractor, the company for which you worked should send you Form 1099-MISC.
Brace yourselves: tax season is coming. For all of your general insurance needs in California, be sure to contact Stromsoe Insurance Agency. We are more than happy to help you get the coverage you deserve!