Tax Maintenance

 

It is never too early to start thinking about your income taxes.  Whether you are preparing your own tax return or seeking the assistance of a tax professional, there are many factors you must consider throughout the year that can help alleviate stress. Here are some simple steps you can take:

 

  • Be aware of your income throughout the year.  Should it increase, you may be required to pay additional taxes throughout the year to avoid a penalty come tax time.

  • Keep a file to collect all tax documents.  These will include items such as your W-2, 1099, SSA-1099, mortgage interest statement and annual property tax statement.  As soon as they arrive in the mail, place them in this file for easy access at the end of the year.

  • Collect all pertinent medical expense information.  This includes documents such as your annual pharmacy, dental and medical statements.  If any of this is missing, it can be obtained by simply contacting your doctor's office or pharmacy.

  • If you own a business make sure you keep all receipts and record everything accurately throughout the year.

  • Keep a copy of the prior year's tax return handy so it can be referenced for any carryover items or overpayments you may have applied to the following tax year.  It also helps to create a checklist of the items you may need for the current year.

  • Note any major changes that may have occurred during the year such as a change of address.  The IRS must be notified to ensure they have accurate and current information.

  • REMEMBER:  The IRS is a stickler for documentation so the more you have the safer you are!

 

 

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