Many of us taxpayers now are waiting for something else before filing our tax returns. It’s not the Internal Revenue Service or state tax collectors like the Minnesota Department of Revenue getting a late start. They began accepting 2015 income tax returns on Jan. 19.
But those of us who are employees – who work for someone beside ourselves – probably still are waiting for critical wage reports for their returns. Employers have until Jan. 31 to send out W-2 forms and some 1099 notices, and they often take at least that long.
Taxpayers who have investments likely will wait even longer for their 2015 reports to arrive. In many cases, investment houses, brokers, mutual fund companies, IRA custodians, etc. have weeks longer to assemble last year’s results for clients.
We’re caught in the lag time, but that doesn’t mean we’re stuck on “idle.” There probably are plenty of last year’s financials to pull together so you’re ready to go when those key documents arrive in your mailbox or online. So, use your lag time!
Here are some essentials you’ll need to prepare for tax filings both before and after Jan. 31:
- Receipts to support deductions and business expenses (if you have self-employment income, too). Place them in distinct categories so that you or your accountant will be able to quickly add them for the return.
- Some specialized items. Statements of post-secondary tuition payments from schools, if you intend to claim those fairly generous deductions or tax credits involved. In Minnesota, find your auto license fees and figure how much you might be able to deduct on your federal Schedule A. Do the same for home mortgage interest from your lender’s Form 1098.
- Any changes to family status. Have documents if appropriate.
One preparation tip is simple. Pull out the prior year’s tax returns and use them as starting points. Of course, you’ll need to adjust for your 2015 circumstances.
Here at EricJohn Ltd., we send out a “tax organizer” to help clients pull together the ingredients for their 1040s and M1s (Minnesota). It prompts them with pre-filled data from the prior year’s returns. It also speeds up tax preparation!
Organize and prepare your 2015 tax returns by contacting eric@ ericjohnltd.com or (763) 537-3244.