Prepare for Tax Filing Season!

Prepare for Tax Filing Season! Fitzwilliams Financial

As tax time draws near, you may have some important tax questions. This article aims to warn of the potential hazards associated with taxes to help you make the most of your return this year.

1. While it may be tempting to submit your taxes without delay, filing before you have all the necessary documents may result in a delay in receiving your return. Therefore, it is best to take the time to verify that you have all the paperwork you need before submitting your taxes.[1]

2. Prior to filing your taxes, it is essential to collect all the necessary documents. This includes knowing your own social security number, the social security numbers of anyone you are claiming as a dependent, and any receipts you plan on using to itemize your deductions. Additionally, you may need to have some of the following documents on hand[2]:

  • A W-2 if you are still working.
  • A 1099 for other income (such as dividends or interest).
  • A 1098 to report mortgage interest you paid.
  • A W-2G if you have any gambling winnings to report.

3. It is essential to ensure that your Social Security number is correct on your documents. Your social security number is very critical when the IRS is looking to recognize you and your records; therefore, you should make sure to go over the information multiple times to ensure its accuracy on the forms.[3]

4. It is important to ensure that the spelling of your name is accurate and coincides with the social security number you submitted. The name on the social security card should be the same one you use when filing taxes, as the Internal Revenue Service uses the name and social security number to locate your information.[4]

5. Ensure that the digits you are entering are precise. It can be effortless to input the wrong numbers or write them incorrectly when handling a great deal of information. And tax software can give an effect of simplicity and continuousness when entering all the details. However, make certain that you don’t insert the incorrect numbers.[5]

6. Take a break! It can be important to step away from your tax documents every now and then so that you don’t burn yourself out. It can be much harder to see errors if you’ve been staring at something for a while. So… step away, take a break, do something you like, and then take another look and ensure that your info is accurate.

7. Make sure you sign your documents. This may seem obvious, but a tax form is not valid without a signature, and it can be easy to forget.[6]

As you can see, accuracy is the most important thing when it comes to tax documents. If you are serious about improving not only how you handle your taxes but also how you handle your finances in general, reach out to us for a complimentary review of your finances.