As tax season approaches, many people in New York City are getting all their income tax preparation ducks in a row to prepare to submit their 2011 tax forms. Whether you are going to file alone or seek the advice of a seasoned tax preparation New York City, there are many different documents, forms, and information you’ll need in order to file correctly and accurately.
Initially, when you prepare your income tax reports, there are some basic details that you’ll need to have at your disposal. You need to make sure you have a copy of your social security card, or verified social security number printed on a state or federal identification card. You’ll also need to have any W-2’s or 1099 forms from any income you will be claiming for the 2011 Income Tax Preparation season.
There are a few other important documents and information that you should have with you when you file your taxes.
Adjustments to your income:
The IRS allows individuals to make adjustments to your income which will reduce the amount of income which is considered taxable income. This will increase the amount of revenue you can receive back and lower the amount of money you owe to the IRS. Here are ways you can reduce your taxable income. Make sure you have supporting documentation to support these deductions:
– IRA contributions made in 2011
– Energy Credits provided by local and state levels
– Interest paid for Student loans
– Money paid to MSA (medical savings accounts)
– Moving Expenses
– Self-employed insurance premiums and medical expenses
– S.I.M.P.L.E. and other pension plans for self-employed individuals
– Any Alimony paid
– Educator expenses if you are a teacher
There are also many itemized deductions you can make which also permit you to lower your tax burden. In the end, this equates to lower taxes paid, and more refunds available. Once again, you’ll need to support these deductions with documentation prior to claiming them on your Federal and State income tax reports:
– Advance Child Tax Credits – payments made
– Dependent Care Costs – Child Care will need the provider’s name, address, their tax ID and the total amount paid over the calendar year.
– Adoption expenses – You’ll need the Social Security number of the adopted child, medical, transportation and legal costs can be deducted.
– Home mortgage interest paid and points paid for closing
– Investment interest expenses
– Charitable Donations Given – cash amount, value of donated property, miles driven to support a charitable cause, and any out of pocket expenses
– Theft loss – amount of damage and any insurance reimbursement.
– Any other misc. tax deductions including – union dues, unreimbursed employee expenses such as uniform bills, travel, publication or supplies.
– Medical and Dental
When you gather this information, and have it ready for your income tax preparation experts in New York City to review, the process of filing taxes becomes smooth and easy, your amount of taxes owed decreases and your amount of money received back increases.
Getting income tax preparation New York City can be very time consuming, but extremely important for any individual or business owner. This is why visiting the team at rawcpa.com is a smart move for anybody needing help with legal tax preparation questions and answers. Visit them today to learn more.
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