Tax season has officially started for many retail tax prep outlets (H & R, etc.) and individual preparers. E-file opens on Friday, Jan 14 and most preparers are getting their offices in organized and ready to file your taxes. But, are you ready? I know April 15 (this year its April 18), seems sooo far away, but as we all know it sneaks up on you. Here are a few things you should do before you visit your tax preparer:
1. If you worked more than 1 job during 2010, be sure you have W2s from all employers.
2. If you started your own business in 2010, be sure you have a record of all income, expenses and miles driven. Also, keep receipts (for the IRS, not your preparer).
3. If you have a mortgage, have your 1098 Mortgage Interest and Property Tax bill with you.
4. If you (or children) attended a college during 2010, be sure to have a record of all expenses paid. Including any paid by a scholarship, grant or student loan. You may have also received 1098-T from your school.
5. If you have started repaying your student loans, the interest is deductible. Be sure to have your 1098-E from your bank handy. This form has the amount of student loan interest paid during the year.
6. For those of you with children:
As always, please leave a comment or question.
1. If you worked more than 1 job during 2010, be sure you have W2s from all employers.
2. If you started your own business in 2010, be sure you have a record of all income, expenses and miles driven. Also, keep receipts (for the IRS, not your preparer).
3. If you have a mortgage, have your 1098 Mortgage Interest and Property Tax bill with you.
4. If you (or children) attended a college during 2010, be sure to have a record of all expenses paid. Including any paid by a scholarship, grant or student loan. You may have also received 1098-T from your school.
5. If you have started repaying your student loans, the interest is deductible. Be sure to have your 1098-E from your bank handy. This form has the amount of student loan interest paid during the year.
6. For those of you with children:
- under age 13: amounts paid for child care are deductible. Have your care provider give you a written statement with their tax identification number and the amount you paid for 2010.
- under age 17: these kids still qualify for the child tax credit (up to $1000/per).
- under age 19: provided you fall into the income limits, they will qualify you for the earned income credit.
- under age 24: although they have been adults for awhile, if you are paying for their higher education expenses, you either deduct or receive a tax credit. Be sure to read #4 & #5.
As always, please leave a comment or question.