Tax season is fast approaching, so you may find yourself with some important tax questions. This article will cover some of the pitfalls of this process to make sure that you get the most out of your taxes this year.
- Don’t file too early! You may be eager to file your taxes to get your return as soon as possible, but filing before you have all your documents can cause delays in getting your return. It’s best to be patient and ensure that you have all the documents that you need for submitting your taxes.[1]
- Gather up all the information and receipts you’ll need beforehand. You will need the social security number of your dependents, and receipts if you are planning on itemizing your deductions. You also may need some of the following documents[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.
- Make sure your social security number is accurate on your forms. Your social security number is very important when the IRS is identifying you and your records, so you should double- or triple-check that that information is accurate on your paperwork.[3]
- Similarly, make sure that your name is spelled correctly and matches the social security number that you provided exactly. The name on your social security card is the exact name that you should be using when filing–the IRS uses that name and your social security number to find your records.[4]
- Make sure that the numbers you are entering are accurate. It can be easy to mistype or miswrite numbers when you are dealing with so much information. And tax software can make it feel easy and seamless to enter all the information but make sure to double check![5]
- 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.
- 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 your knowledge of the tax laws and procedures and would benefit from a financial checkup, reach out to us for a complimentary review of your finances.
[2] https://www.investopedia.com/articles/pf/07/tax_prep.asp
Advisory services offered through EGSI Investment Management, Inc., a Registered Investment Advisor with the State of Ohio. Insurance services offered through EGSI Financial, Inc. Guarantees offered with insurance products are based on the claims-paying ability of the issuing company. Investing may involve risk and may result in the loss of principal. Ohio Insurance License # 619337. Please contact EGSI Investment Management if there are any changes in your financial situation or investment objectives, or if you wish to impose, add, or modify any reasonable restrictions to the management of your account, EGSI Investment Management Form ADV Part 2A&B is available for your review upon request.
