Study Tax Return

For filing taxes it is necessary to have a state driver's licenses or government issued ID and a social security card. The driver's license number is necessary for filing state taxes as the number is utilized for tracking and recording of income as well as establishing residency. It also provides a means for an accountant to verify a person's identity.

This form is provided by an employer to their employees and reflects all tax-related information from the previous year including gross and net incomes, federal taxes withheld, social security, and state taxes withheld. This form also contains specific alphanumeric codes that are convenient when using online forms for pulling up the filed information instantly.

1099

You get this form in the mail at the end of year. This form will need to be filled out by the accounting department of the research facility. This form is also used to account for interest, brokerage accounts, and dividends. This form is the reason why it is necessary and highly recommended to hire an accountant to handle tax filings to ensure all deductions and credits are maximized.

Additional Income Forms

If retired and receiving social security, have the 1099-SSA form available to track that income. Also, if retired and living off of IRA's, annuities, or any other types of retirement accounts, be sure to have the most recent account statement on hand as some accounts were created using pre-taxed money and will need to be accounted for at this time. Finally, if reviewing child support, alimony, or income from any civil cases, records should be carefully kept of these payments. Records can be kept either on a spreadsheet, or by keeping the receipts included with each payment by the court.

Deductions

A deduction is a government offered percentage reduction on taxes due for certain necessary or beneficial expenses a taxpayer may utilize. Deductions are optional, so it is important to be aware of those that are currently available. The most commonly used deductions include vehicle depriciation/milage, interest on student loan payments, interest on a mortgage, property taxes, charitable contributions, energy-star home improvements, and non-reimbursed medical and job-related expenses. Paper records of any deduction expenses should be on hand when you are completing the tax paperwork.

A credit is a government offered amount that matches dollar for dollar the expense a consumer has paid. Credits include child or dependant care, energy taxes, education taxes, and earned income tax credits. To ensure all credits are utilized on tax filings, it is highly recommended to consider using either an accountant or a yearly updated computer program such as Turbo Tax.