Tax Season: Step 1 Gathering Records

It's that time of year when we start seeing commercials for tax refund loans, free tax filing and people on busy intersections dressed like Uncle Sam or Lady Liberty waving us in to the office of tax preparers to file our tax return.  All these reminders begin to push our panic button because we are rarely ready to file our tax return. So here's a few things to get you started.

1.  Find last year's tax return:   Last year's tax return can help you get organized for this year's tax filing.
2.  Start a list List items on your last return that are the same as this year.
     a.   Form W-2 's from your jobs
     b.   Form 1099's from bank accounts for interest and dividends
     c.   Misc Form 1099's for work, rent income, or other miscellaneous income
3.  Contributions for the year can include donations to non profit organizations as well as donations of  clothing, furniture, or other household goods.  You should get a receipt for all donations.
4.  Home Improvements:  Some home improvements may provide tax credits for the energy savings they provide.  These items may include a new heater or air conditioner, solar screens, storm doors and windows, and insulation.
5.  Sales Tax is deductible if you itemize your deductions.  A sales tax table is used to calculate this amount based on your income.  However, if you have large purchases for the year such as an automobile, home improvements, or other extraordinary purchases, you may be better off by adding up your sales tax for the year instead of using the table provided amount.

This is at least a start.  It's still early, so you still have plenty of time to gather your records.