Are You Ready To File Your Taxes?

With the tax season here, don’t fret because listed in this article are CNBC Select’s needed documents to file your taxes according to the Internal Revenue Service (IRS).

IRS Tax forms
IRS Tax forms (Photo: Google)

Be ready to avoid mistakes and to get the tax refund faster

Tax Software options – Use the right tax software for a smooth tax filing season.

  • TurboTax – has a lot of plans you could choose from. Either get real-time help from Tax experts or from a local tax expert with several guarantees.
  • H&R Block – has easy-to-use interface and different guarantees.

Personal Information – provide all necessary information including bank account because this is where you will receive your tax refund. If filing for a joint return with your spouse, get their information too.

  • Your full name
  • Date of birth
  • Social security or tax ID number
  • Home address
  • Previous years’ tax records
  • Bank account information for direct deposit refunds.
  • Identity Protection PIN (IP PIN) if applicable

Dependent information – if applicable, include any dependents you have such as children or elderly parents.

  • Dependent’s name, date of birth and social security or tax ID number
  • Any income information of a dependent or other adult in your home

Income information – depending on your sources of income, you might need to several different documents. You should have received most of these forms by the end of January 31, if not, you may ask the business or government entity to get them. If any forms below are missing, you may be penalized by IRS.

  • W-2 information from your employer
  • 1099 forms such as 1099-G (unemployment), 1099-NEC (contract work) 1099-MISC (miscellaneous income), 1099-INT (interest income), 1099-DIV (investment dividends), 1099-B (income from stock sales), 1000-G (government payments) and others
  • W-2G forms for certain gambling activity
  • SSA-1099 form to report social security benefits.
  • Rental income
  • Jury duty records

Deduction information – You may not qualify to all the deductions but below are the most used.

  • 1098 form for mortgage payments
  • 1098-E form for student loan interest paid over $600
  • 1098-T form for tuition and education costs
  • Real estate taxes
  • Medical expenses
  • State and local taxes such as income tax and sales tax
  • Charitable donations
  • Casualty, disaster, and theft losses
  • Financial losses

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Other important notes to keep

After gathering all the needed information and filling up all the forms, you better keep it in a safe place together so your preparation for next year’s tax season will be easier. Some of it will still be useful for next year while you will have to update the others. Keep your tax returns from the last 3 years, as recommended by IRS to support documentation if ever you’ll be audited any time in the future.

READ ALSO: Processing Of 2023 Income Tax Returns Starts In Colorado

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