| It is hard to believe that another tax season is rapidly | | | | profit and loss statements are done, the sooner your |
| approaching. With the holidays around the corner, no | | | | tax preparer can begin working on the return, which |
| sooner will you be finishing your Thanksgiving turkey | | | | could enable you to file an earlier tax return. In the |
| than you will be sitting in your accountant's office or | | | | event that money is owed, this gives you more time to |
| loading tax software onto your PC to assist with filing | | | | make arrangements for generating the funds needed |
| your return. The following are several ideas to help | | | | to pay the debt. |
| simplify the tax preparation process. | | | | Get Knowledgeable |
| Get Organized | | | | For taxpayers who have an accountant prepare your |
| The first step in preparing your taxes is gathering the | | | | return, be sure to create a list of any questions you |
| data and forms you'll need to complete the return. A | | | | have for your accountant. If you do not consult an |
| good place to start is to look at your tax returns for | | | | accountant, you can still get your questions answered. |
| the last three years and make a list of items that | | | | Some accounting firms will answer questions over the |
| were reported. For example you should expect to | | | | phone, and there is always the possibility of emailing |
| receive a W2 form from each of the employer(s) you | | | | your questions to a general mailbox. A good example |
| worked for in 2008. Create a folder marked Taxes | | | | of this would be to inquire about the first time |
| 2008 and place the forms in it as you receive them. | | | | homebuyer credit and what qualifications are needed |
| Use this folder to collect any other information or data | | | | to receive this benefit. |
| that you'll need for filing. Examples include information | | | | Be careful of firms that charge excessive fees for |
| about mortgage interest, real estate taxes, interest | | | | certain tax preparation services rendered. Do not be |
| earned and dividends, stock information, IRA | | | | fooled by refund incentives in which the taxpayer |
| contributions, charitable donations, k1 schedules, college | | | | walks away with a check in hand at the time of filing. |
| tuition, alimony, unemployment, 1099s, social security | | | | This is called a rapid refund. A fee for the rapid refund |
| received, medical expenses paid, etc. The point is to | | | | service, which can be quite high, can be deducted from |
| start getting organized early so that when the time | | | | your tax return. However, if you choose to file |
| comes to file your taxes, you have all the information | | | | electronically and wait 7-14 days for the refund, you will |
| you'll need in one place. | | | | receive your entire refund. All that is needed to file |
| Related, is the need for appropriate documentation. | | | | electronically is the routing number of your bank and |
| Proper documentation is needed for anything that is | | | | your account number for direct deposit. Another option |
| placed on your tax return, and you should be aware of | | | | is to have a check mailed to your address which can |
| documentation requirements. For example, charitable | | | | take 4 to 6 weeks. |
| donations over $250 you must have a receipt in order | | | | Choosing a professional to prepare your taxes should |
| to report the deduction. Another example is in reporting | | | | not be taken lightly or done at the last minute. It's |
| any investment activity. Any sale through the stock | | | | important to feel comfortable with your tax |
| exchange needs to be reported on your tax return. If | | | | professional and to trust them. A trusted accountant |
| you lost money in the sale you can deduct up to | | | | should be one of the many reliable sources you have |
| $3,000 per year with additional losses carried forward | | | | available at all times-especially during the current |
| to the following years. When reporting any stock | | | | economic situation. Their advice and council can help |
| activity, make sure you have a break down of what | | | | you make decisions and unravel the complexity of |
| was paid for the stock originally and what the stock | | | | many financial transactions. If you currently do not |
| was sold for. For example if you purchased xyz stock | | | | have an accountant I strongly encourage you to begin |
| on May 1st of 2008 for $100 and sold the stock on | | | | interviewing potential candidates. Even if you prepare |
| June 1st of 2008 for $50, you have a loss of $50 | | | | and file your own taxes, it's still a good idea to have a |
| which is deductable. | | | | third-party you can consult, to ask questions and keep |
| For taxpayers who are self-employed, start preparing | | | | you up-to-date on the latest laws and requirements. |
| your profit and loss statements now. The sooner the | | | | |