Many people become overly stressed this time of year. That’s right – tax season has come around again.
Avoid extra stress by organizing the documents and information you’ll need ahead of time. This will save you time when preparing your tax return and prevent you from missing anything important.
- Social security numbers or individual tax identification number of spouses and dependents
- Last year’s tax return. This is not required but is helpful to have
- Your banking information for direct deposit
- W-2 forms
- 1099 forms
- Investment income information
- Miscellaneous income (jury, gambling winnings, prizes, and awards)
There are certain stipulations and limits to income adjustments. You can learn more at IRS.com, but the most popular and common income adjustments include:
- Contributions to your IRA
- Energy credits
- Interest paid on student loans
- Moving expenses
- Bad debt deductions
Credits and Deductions
As with income adjustments, deductions help you increase your tax refund or reduce the amount you pay in. Depending on different factors, you could qualify for many deductions or credits. Though you should do some research to find yours, some of the most common are listed below:
- Child care expenses
- Education costs
- Mortgage information
- Medical and dental costs
- Home business expenses
- Charitable contributions/donations
- Vehicle license tab fees
Now that you have a list of the documents you’ll need, get organized for tax return season. You can start by gathering the easy information while waiting for other documents from your employers.
Contact or stop at your nearest Mid-Minnesota Federal Credit Union to gather any bank-related tax documents. We can help you decide how to spend, invest, or save your tax return, too!