Tax preparation: 5 Types of Documents to speed the process

Taxes are inevitable; whether you are a salaried individual or a business owner, you are obliged to pay taxes according to the law. Although the IRS has been supporting taxpayers and making it easier for them to file and pay taxes online, people with insufficient knowledge of tax codes might not be able to file taxes correctly.

If you are also one of them, simply search online for tax preparation offices near me and choose the one that covers your needs. You may also contact Accolate Accounting for tax preparation services at affordable prices and save yourself from an IRS audit or penalty due to inaccurate tax filing.

This first meeting with your accountant may seem like an overwhelming undertaking. However, it’s not too difficult and takes only a bit of organization to prepare yourself before the big day. You absolutely need to bring everything you have pertaining to your finance, but don’t forget these five vital pieces of information.

Personal Identification

It is mandatory to attach a personal identification with your tax form to prove that the financial information provided in the form belongs to you. It might seem obvious that you need personal identification, but you’d be surprised how many people show up without one.

One question that is often asked is “My license is expired or expiring, will the IRS still accept it?”  The good news is that only the driver’s license number is required. If you can’t seem to find your license, or you don’t have one, here are other types of ID you can use:

Passport

Military ID

Government official ID

Social Security Card

For married couples filing jointly, their personal identification as well.  So be sure to gather that information and make it available.  Your spouse’s signature is required as well so you’ll want to pick a convenient time so that both parties are available to meet during tax preparation.

To claim a dependent child on your taxes, you will need the child’s Social Security card.

Citizens of other countries working in the USA must have their individual taxpayer identification number (ITIN) to file taxes.

Income Receipts

You might already know we pay taxes when we earn money with a job. However, when it comes to filing taxes, you must report each cent you earned.  There are a few different types of income receipts that are common. These include wages, salaries, tips, commissions, and bonuses. Each type of income receipt has its own set of tax implications that you will need to be aware of.

Here are some income receipts that you will need to bring with you:

W-2: A W-2 is a form that reports an employee’s annual wages and the amount of taxes withheld from their paycheck. The employer supplies the W-2 to the employee and the IRS.

Did you take up a side job this year? If so, you will need to bring your 1099. A 1099 form is used by a business to report payments of $600 or more that have been made to a taxpayer. This form is usually sent out after the end of the calendar year, in January. It is sent to the taxpayer by the business that paid them money. If you receive a 1099 form, you must report the income on your income tax return, even if they did not receive a W-2 from the same company.

There are different types of 1099 here are some of the most common forms:

1099-MISC: Miscellaneous Income

1099-NEC: Independent Contractors

1099-DIV: Dividends and Distributions

1099-INT: Interest

Proof of Expenses

Tax preparers need your financial details, including expenses, to determine your actual taxable income. The IRS allows you to file itemized deductions by showing your expenses, reducing your tax burden. Itemized deductions can include expenses for education, medical purposes, charity, job search, tax preparation, etc.

Bringing any receipts or documents as proof of your incurred expenses for the year.

Proof of Financial Loss

Going through situations in which you lose finances or valuable assets is not enjoyable.  They can be very emotional and often, you have not taken the time to quantify your loss.  However, if you have unfortunately been a victim of this type of unfortunate circumstance, you may file additional deductions, according to the IRS.

Be sure to bring along all the documents related to your loss and how it happened. For instance, in case of a robbery, you must bring along police reports and case files, detailed information about your losses, etc.