Organizing Tax Information

Although collecting and organizing tax information is a "no-brainer" for us, (as it should be), we realize that for many of our clients, the very thought is overwhelming.  Don't know where to start or how to begin?  Here are a few steps to simplify the process:

1. Collect your tax data:  As W-2s, 1099s and K-1s arrive in the mail, accumulate them in one box, file, or pile.  If you receive these documents electronically, print them out when  notified of availability and do as above.  Pull out all charitable receipts. Assign values to Goodwill donations and write the value on the receipt.  To help in estimating values, go to: http://www.goodwill.org/get-involved/donate/taxes-       and-your-donation/
2. Obtain copies of any estimated tax payment checks.  Or if paid electronically, obtain verification of payment.
3. Collect and summarize out of pocket medical expenses.  This step is not worth     doing unless your total will be greater than 7.5% of AGI.  Use last year's AGI as a guide.
4. Clip (do not staple) all like documents together.
5. Get out your current year organizer (or last year's tax return) and compare that information to the documents in your box, file or pile.  Check off or highlight the documents that you have and request those that are still needed.
6. Send in organizer and documents by March 5  If you want to keep your original documents do not send them in.  Send us a copy.
7. Sit back and relax, we’ll take it from here!

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