There are many documents that you need to collect as you prepare to file your personal tax return. Make sure you have your return from the previous year, your IRS (Internal Revenue Service) assessment notice, and any other communication from the IRS. Your notice of assessment shows the key deduction limits you can use in the current year, such as your registered retirement savings plan, your Home Buyers’ Plan repayment balance and your deferred amounts. If you have any doubts, you should contact a tax attorney. An experienced attorney from a reputable law firm such as Segal, Cohen & Landis, P.C. can help you prepare your taxes properly with minimal hassle. These professionals specialize in resolving any tax-related issues that you might have and can make sure that your taxes are ready.
Current income items
The most important thing you will need is your W-2. If you have worked for more than one employer, make sure they have the correct address to receive your slips. This document is important for preparing your taxes. Similarly, you will also need the records of your investments. If you moved during the year, make sure your investment advisors and financial institutions have your correct address to ensure you receive all your necessary tax information.
If you made contributions to retirement accounts this year or in the first 30 days of the following year, make sure that information is also available. At any time, if you have received government benefits, such as employment insurance or workers’ compensation, you should have that information available as well.
You can also deduct the cost of certain transit passes based on the amounts and types of passes you purchased during the year. There are also possible deductions for medical and dental expenses. You must collect these receipts before proceeding with the preparation of your tax return. If you are a tradesperson, you must calculate the union dues you paid, your fees and the cost of your tools to determine if you are entitled to certain deductions.
Other common situations
Self-employed Americans must gather additional documents in addition to all of the above. Self-employed workers must gather all their bank and financial statements, including, but not limited to, income, expenses and (if applicable) any calculation of office expenses.
Rental property owners must gather all financial information related to their property. This information includes rental income, rental property expenses, property taxes and mortgage interest. If this is the first time you report rental income, have your rental agreement on hand. If you want an experienced professional to help you, contact Segal, Cohen & Landis, P.C. They have the answers to your IRS related matters.