Get A Jumpstart On Your 2009 Tax Return By Getting Organized Early
Another year has ended and that means it will soon be time to file your 2009 taxes. It may not be the most exciting thing that the new year brings, but it is a necessary evil nonetheless. However, tax preparation does not have to be dreadful event that most people believe it to be, so long as you are properly prepared. To make things a bit easier on you, as well as your tax preparer, here are a few simple techniques to get yourself ready:
- Take an envelope or folder and mark it “2009 Taxes” to house all of the records you will use when filing your 2009 1040
- Make a list of all of the interest-bearing accounts you have (including checking, savings, & certificates of deposit)
- Add all of your brokerage accounts to that list
- Also include all lenders whom you paid mortgage interest to and all counties/taxing authorities to whom you paid real estate taxes to
- Make a separate list of all of the partnerships or S-corporations that you have an interest in
- Each time you receive a form K-1, 1099-Int, 1099-Div, 1099-R (Retirement disbursement statement), 1098-E, or tax statement cross off the name of the payee from the list until they are all marked as received.
- Start to gather all of the information related to stock or mutual fund sales you made during the year as many brokerages do not have records of purchase prices or dates for holdings that were transferred in from other brokerage accounts
- Get all of the information together related to any rental properties you may own: rent receipts, utility bills, mortgage statements, real estate taxes, repair invoices, insurance bills, etc.
- Pull all of the receipts you plan to use when filing your taxes, including but not limited to: charitable donations of cash or goods, unreimbursed business expenses (gas, tolls, meals, travel, supplies, etc.), education expenses (and educator expenses if you are a qualified educator), child-care costs, documented moving or job search expenses, medical expenses, medical insurance premiums, etc.
- Call any pharmacies you use and ask for an annual account summary for the year outlining all of your prescription costs.
- Pull any receipts for large purchases made during the year, which may include automobiles, appliances or other big-ticket items (your tax preparer will know which one can be used)
- Place all of these items in the folder along with any other items that you may need to use as supporting documentation
- Keep the folder on your desk at all times as a reminder to keep organized and not to wait until the last second to bring your documents to your tax preparer to file your 2009 taxes.
Naturally, this is a very simplified list, everything may not apply to your individual tax situation or you may have a much more complicated tax situation. In any case, this is just something to help get you started on the right path in filing your 2009 tax return, and not making the mistakes that many taxpayers make: waiting until the last second to file, or not being prepared and losing out on deductions due to missing or incomplete information from lack of planning and organization. While you may benefit by requesting an extension to the filing deadline, keep in mind that you will still be responsible to pay interest on any tax liability you may have when everything is said and done.
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