Mortgage Rate News

It’s February. Do you know where your tax information is?

Even though it is still a couple months until April 15, it really is a good idea to get your tax stuff done as soon as possible. Indeed, February is a great time to get out the financial checklist and make sure that filing your tax return is on it. After all, if you have a tax refund coming, you will get your money that much sooner. And if you owe money, it’s a good idea to get your return prepared early so that you know whether or not you are going to need to save up so you can pay on April 15.

You don’t have to do everything for your taxes all at once, but you should probably get started, doing a little bit at as time as you can. Here are some of the things you will need when it comes to taxes, whether you are preparing them yourself, or having someone else do it for you. For the most part, documents that don’t involve your personal information are provided to you. They should be mailed by January 31. Double check to make sure that you have the necessary, and if you don’t, contact the organizations that are missing them.

• Social Security Numbers: These are for you, your spouse and your children.
• Your residential address.
• Child care provider tax ID: If you plan to deduct child care, you need this tax ID number.
• W-2 forms: These should be provided to you by an employer. One copy each goes to the federal government, the state government and you. There is usually a fourth copy as well.
• 1099 forms: If you performed non-employee contract work, those you did it for should send you a form if you made more than $600 from them in the year.
• K-1 forms: For businesses.
• Farm income.
• Income from partnerships and trusts.
• Annuity and pension information. If you are receiving retirement plan distributions, you need this information as well.
• Alimony received.
• Winnings from gambling or lottery: This will be on form W-2G.
• Award and prizes: This should be on a 1099-MISC. Be aware that non-monetary prizes can be counted as income as well.
• Jury duty pay.
• Interest income received.
• Unemployment benefits.
• Stock transactions and statements.
  
• Fellowships and scholarships.
• Income tax refunds from state and local governments.
• Mortgage interest paid: First and second mortgages.
• Sale of real estate: 1099-S
• Real estate taxes paid.
• Documentation for expenses: If you plan to claims deductions or credits for business expenses, sales tax on a new car, first time home buyer, charity donations, moving expenses, or anything else, you will need the proper documentation for this. Otherwise, if a tax audit comes your way, there could be trouble.