What do I need to bring when I am having my taxes
prepared?
Following is a list of the more common items you should bring
if you have them.
- Wage statements (Form W-2)
- Pension, or retirement income (Forms 1099-R)
- Dependents' Social Security numbers and dates of
birth
- Last year's tax return
- Information on education expenses
- Information on the sales of stocks and/or bonds
- Self-employed business income and expenses
- Lottery and/or gambling winnings and losses
- State refund amount
- Social Security and/or unemployment income
- Income and expenses from rentals
- Record of purchase or sale of real estate
- Medical and dental expenses
- Real estate and personal property taxes
- Estimated taxes or foreign taxes paid
- Cash and non-cash charitable donations
- Mortgage or home equity loan interest paid (Form 1098)
- Unreimbursed employment-related expenses
- Job-related educational expenses
- Child care expenses and provider information And any other
items that you think may be necessary for your taxes.
What do I do if I receive a notice from the IRS about
my taxes?
Don’t panic! the first thing to do is carefully read
the notice—to determine why it was sent, what the IRS
is requesting, and what they want you to do. It may be
nothing of importance; it may even be a notice in your favor.
After reading it you should bring it to our attention.
What do I need to keep for my charitable
contributions?
First, is your contribution cash or non-cash?
All contributions must be made to qualified charitable
organizations.
How should I keep records for my business
driving?
Keep a log in your vehicle and record the purpose and mileage
of each trip. You also need to record the odometer readings
at the beginning and end of each year, as the IRS will ask
you for total miles driven during the year. Keep your repair
bills as these normally record odometer readings when the car
is serviced.
I received tax statements from my employer or bank
after I filed my tax return. What should I do?
If we filed your return, bring the new tax documents to our
office. We will determine if it is necessary for you to file
an amended return.
What is an amended return, and when should I file
one?
An amended return is simply a return filed with the IRS
and/or state because of an error or an omission on your
original return. You should file an amended return if there
is a material difference between the original return and your
new changes. As of now, an amended return cannot be
electronically filed, and any expected refunds will take
longer to receive than the original return (2-3 months,
according to the IRS). Generally to claim a refund, your
amended return must be filed within 3 years from the date of
your original return or within 2 years from the date you paid
the tax, whichever is later.
Is my social security taxable?
Usually if your income including social security benefits is
less than $25,000 if single or $32,000 if married, your
benefits are not taxable. If your income is higher than those
limits, there are formulas to determine what percentage of
your social security is taxable. Currently up to 85% of your
social security may be taxable.
I haven’t been filing my tax returns what
should I do?
First, you must determine if you were required to file in the
years you did not file. There are many different items that
could figure into this—such as your filing status, your
sources of income, whether you had any tax withheld, etc.
This is a link to the IRS instructions for filing
requirements for 2007:
http://www.irs.gov/individuals/article/0,,id=96623,00.html.
If you determine you should have filed, contact us and we can
handle all of your prior year filings. It is very important
that you do not just continue to not file. If you owe money
the penalties for not filing are high. If you are owed a
refund you will lose your claim to it 3 years after the due
date of the return.
Brian Olson Tax & Accounting, 320 Monroe St., Little
Chute, WI 54140, (920) 687-2306 e-mail
brianolsonea@netnet.net