The beginning of a new year is almost here, and with it brings the tax season. No one likes the idea of having to do taxes, but it’s a fact of life, and one that has to be gotten through. It can be made easier by having all of the documents ready beforehand, easing and speeding up the process so it is done sooner than later. Not sure which documents you’ll need? Following is a list of financial paperwork you may have accumulated through the year and are needed for tax time:
- The W-2 that you get from your employer(s).
- Any large medical or dental bills
- 1099s, which cover a variety of types of income
- Receipts for charitable donations
- Records from your investment and retirement
- Business expenses from a sole proprietorship
- Property tax records and any records that relate to property, such as a purchase or improvements.
By law, you are required to report all of your income, but you can use some expenses to reduce your tax liability. For example: you had a major medical expense that wound up costing you $10,000. If you are filing single, you can enter this on Schedule A and get a larger personal deduction than the one the government supplies.
Are you in the greater Phoenix area and looking for help with your taxes? Contact Phocus Companies today for assistance!
