Preparing for the 2017 taxes
The season to start filing federal and state taxes will begin soon because companies that you worked for will send you your W-2 form; or the 1099 Form if you worked as a subcontractor before January 31st, 2018.
It’s a good idea to keep your tax documents throughout the year to help you so that you don’t have to worry at the last minute about which ones need to be ready to be presented to your tax assistant between the beginning of February and April 15, 2018.
Here you have some advice to help you be prepared so that you’re ready when you do your taxes in 2017 or when you take them to someone for professional preparation in order to declare them:
Make sure that you have the forms that you’ll need
Every contributor has a different tax situation and you might need some forms that cover your situation depending on your needs. If you are not sure which ones these forms would be, consult with a tax professional or go to the IRS website.
Keep all receipts for taxes in one place
If you use itemized deductions and not standard ones that are offered by the IRS, you know how important it is to keep all documents related to taxes in one place. If you lose any document, it is hard in some cases to recover this information and it could cost you an important deduction. You might also be looking all over the house for some form that you can’t find.
Store tax returns from previous years together
This is important because the preparation service that you select, if it’s not the same person, will not be familiar with your case and will need to reference taxes from previous years. It is a good idea to keep them in a file or even in a shoebox under the bed.
You can request an extension
If you can’t find all of the documents that you will need, you can ask for an extension in order to pay your taxes until October 15th. However, you might have to pay interest or fees for delays. This is especially of benefit for those who have suffered from natural disasters such as hurricanes, floods or earthquakes.
Revise the W-4 Form
If you have had changes in the family such as birth, divorce, death or changes in the number of people who live in your home, communicate these occurrences with the company where you work in order to reflect these changes in the W-4 Form.
Familiarize yourself with deductions that you have a right to
Keep a list of deductions that you think you can request on your taxes and if you can’t do it, hire a competent preparation service to help you. Some people can fill the 1040EZ Form if their taxes are simple. If you bought a house or got married in 2017, it might be recommendable to fill the Sch-C Form to receive credits that you may have a right to. Request the forms to verify the donations that you made to charitable organizations or churches. All of this can help you not overpay on your taxes and possibly receive a reimbursement.
