As the mail comes in every day, you'll find information that can most likely be applied to the compilation of either your tax refund or the monies that you will have to pay the tax man on April 15.
Whether you are paying or receiving monies, it is best to do your taxes early and get them out of the way.
So, grab a large manila envelope and begin to collect all of that mail with those lines of information that are going to help you to pay the least amount of money come tax day.
Mortgage Interest
If you own a house, chances are you have a number of write-offs on your mortgage statement. The first write-off is the amount of money that you paid in interest on that mortgage. If you have a second mortgage on that same house, you can write off that interest as well.
You will also find the amount of real estate taxes paid on that statement. So take some time to write those two or three numbers down because they can be a major help in diminishing your tax liability.
Charitable Contributions
As a believer and a giver, you should have been keeping records all year long when it comes to your tithes and offerings. Don't wait for the ministries to get back to you regarding how much you gave. Go to your check register and calculate your giving and add that figure to your tax sheet as a tax-deductible entry.
Another piece of information that can sometimes be long in coming is your W2 forms from your employer. Grab your year-end check stub and do some math to determine what you have paid in state, city, federal, and social security taxes last year.
Get those numbers on your personal records and proceed with your calculations as you wait for the forms from your employer.
Own A Business?
If you have your own business, now is a good time to gather your income and expense data and prepare the profit and loss information that will go into your Schedule C. Since you do not need to rely on anyone else to provide you with this information you can complete this before obtaining information from other outside sources.
Taxes can be very complex and they are different for everybody across the country. I am just reminding you to compile and file early.
If you have a refund coming, you should move early so you'll have the money in your hands to do what you need to do. If you owe money, you can wait until April 15 to file. Still, getting your tax information together now before you lose information or misplace things is not only simple, it is wise to do.
Finally, if you are intimidated by having to do your taxes, you are not alone. You can reach out to us and we can direct you to some professionals that can give you some advice concerning finding inexpensive and thorough ways to get ahead on the tax filing process.
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