It is tax time once again and while some people view this time with trepidation, I am one of those who actually look forward to doing my taxes.
I do not get excited about my taxes because of a possible refund. In fact if I do get a refund it is really very small, meaning that the government did NOT get to hold on to my cash for a whole year.
In fact most of the time I end up having to pay a small amount and that is quite fine with me. I have been waiting on my documents to come in so that I can file as soon as possible and was just told by the HR department that they would be mailing out our W2 forms in the next couple of days.
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When you get ready to do your taxes there are a few documents that you will need to get ready and some of the most important ones are:
-W2 forms
-1099
-Contribution statements
The W2 forms will come from your employer if you work for someone and should be a total of what you got paid for the year. It will also show your deductions for taxes and Social Security etc. for the year.
You may also receive a 1099 if you have received interest on savings or checking accounts and these amounts have already been reported, so there is no reason to think you can avoid filing them with your paperwork.
1099s are also issued if you have done any independent contract work and this will also be counted as your income when determining the amount that you will get back or what you will owe.
If you have made any charitable contributions during the year you should receive a statement from the places that you made the donations. These statements may not be on a particular named form but might simply be on the letterhead of the organization. My church sends a letter detailing how much I have contributed over the year because I make my Sunday donations via check. I use this letter as documentation when claiming my taxes, in case I should ever get an audit.
Of course there are many more documents that you will need if your taxes are more complicated but generally most of the people I know will only need these forms to get everything done.
I am waiting on my W2 right now so that I can begin the process online and I say happy tax prep to you all!
Want to add…and thank God for TurboTax! 😉
I don’t mind doing my taxes. I usually get a small refund but last year I owed money. I was not happy about that either. If I owe again this year, I will change my withholding so I come out pretty much even.
And…Rock on FreeTaxUSA!
I don’t mind doing taxes either. I normally don’t get money back like you and I don’t mind giving to the country in which I live.
The most important thing with a declaration is to begin tax planning for it a whole year before, not when the forms come and it is time to declare. Try tax plan over several years in advance, it is very profitable.
Like most people, I hate doing taxes. There are just so much paperwork and calculations need to be done… no good.
Like you, I prefer to have to pay a bit to the government. Well, as long as it is just a bit. I try to get my taxes as close to zero as possible – meaning I neither owe nor will I get a refund. However, that is very difficult to do as my estimated tax payments are only estimates.
Another thing that may be important is a compilation of your expenses. Especially for those whose income is solely 1099 based.