Tax preparation can be a task filled with stress and worry. However, the process can become smooth and manageable with the proper documents. At Walston Advisory Firm, we believe in making tax preparation simple and stress-free for you. Here are the five essential documents you should gather for a worry-free tax filing experience with us.
1. Income Documentation
First, your income documentation forms the crux of your tax return. Here’s what you need:
W-2 Forms: If you’re an employee, your employer sends these forms by the end of January. They report your annual earnings and the taxes withheld from your pay.
1099 Forms: If you’ve undertaken work as a freelancer or independent contractor, you will receive a 1099-MISC. For those with income from investments, you need form 1099-INT for interest earned and 1099-DIV for dividends earned.
2. Expense Documentation
Expense documents are vital as they can help you qualify for tax deductions. They include:
1098 Form: This document reports the mortgage interest you paid during the tax year. If you’ve paid enough mortgage interest, it might push you to itemize your deductions.
Receipts for Charitable Donations: If you donated to charitable organizations, ensure you have receipts as proof of contribution. These deductions can add up and be quite significant.
3. Health Insurance Documentation
With the ever-evolving healthcare laws, understanding what is required to report on your tax return can be challenging. These documents might help:
Form 1095-A, B, or C: These forms prove your health insurance coverage during the tax year. While most taxpayers will only need to check a box on their tax return indicating full-year range, having these documents in case of an audit is best.
4. Cost Basis Documentation
If you sold any stocks or real estate, having documentation of your cost basis – the amount you paid for these assets – is crucial. It can lower your taxable income by increasing your reported gain or decreasing your reported loss on these sales.
5. Previous Year’s Tax Return
Last but certainly not least, your previous year’s tax return is essential. It’s helpful for reference and can save time collecting this year’s tax data. Plus, if you’re returning as a Walston Advisory Firm client, it allows us to maintain consistency and accuracy in your tax filing.
In conclusion, tax preparation doesn’t need to be a stressful ordeal. With the correct documentation and Walston Advisory Firm’s expertise, you can make the process much less daunting. Remember, preparation is vital to a smooth, stress-free tax season! Contact us at [email protected] or (801) 263-0400.