Remember the often-quoted Boy Scout motto, “Be prepared”?
Keep it in mind before you sit down with your accountant or preparer for a tax chat. Your advisor knowsIRS tax rules, but you’ll have to dig into your own records for the figures needed to draw up accurate 2011 federal and state income tax returns. The advance work can save time and money!
Professional tax experts, such as EricJohn Ltd., often will provide you with a “tax organizer” document in advance of your visit. It prompts you for important details, including personal information required by the Internal Revenue Service, various types of income and a range of expenses that can be turned into deductions or tax credits.
Our tax organizer at EricJohn Ltd. covers income reports from employers or investment companies, and reminds you about tax-related expenses, such as auto mileage or charitable contributions. Did you spend money for child care? Did you make a move during 2011? Do you have the receipts you need to verify expenses? The organizer jogs your memory.
Don’t forget to take along your 2010 federal and state income tax returns. They can be good guides for this year, and often can supply important numbers for 2011. For example, some items, such as stock losses, can be carried forward and used to reduce this year’s tax impacts.
A SHORT LIST FOR YOUR VISIT;
Here’s some tax-related paperwork to pack for a visit to preparer:
- All W-2 statements (issued by employers)
- All 1098 forms (issued by mortgage companies or educational institutions, among others)
- All 1099 forms (issued by other income payers, such as banks and investment houses, etc.)
- Statements from non-profit organizations about cash donations; statements showing donations of goods.
- Property tax statements
- Prior year’s tax returns
- Any envelope that is stamped, “Important Tax Information”