During the celebration of the New year, people usually do not think about the declarations. But if you are expecting a tax refund and want as soon as possible to receive the money, prepare all the documents for his return in advance, writes USA Today.
Remember that without the following tax documents attempted submission of documents may lead to errors and will require the filing of amended returns, which could lead to more delays in receiving compensation.
1. Form W-2
If you are an employee, then your employer you will receive a form W-2. The IRS requires employers gave W-2 to their employees until January 31, although some give them before.
In the W-2 form contains a lot of information that goes directly into your tax return. You will find your income for both Federal and state purposes and the amounts that you withheld from their wages for such things as income tax, payroll taxes for social security and medical care, contributions to pension plans or items related to health.
Some taxpayers decide they can figure out what can appear on a W-2 based on other sources, such as their last salary for the year. However, if there are discrepancies between what you have deducted, and those specified on the official W-2.
2. Form 1099
There are many different types of 1099 tax information forms and they cover almost all of the other ways people make money. Investment income typically comes in such forms as 1099-B for broker transactions 1099-DIV for dividend income and 1099-INT for interest income. Work as an independent contractor is generally reported in 1099-MISC. Form 1099 usually go from late January to mid-February.
As W-2’s, your financial institutions or other providers of income must file your 1099 to the IRS and to provide you with a copy. In case of a discrepancy can cause problems, so it’s good to have your 1099 when you prepare your tax return
3. Form 1098
W-2 and 1099 are focused on income, but other forms give you important information about deductions you can make. Form 1098 includes the following items:
The original form 1098 contains information about the mortgage, including interest, taxes and any insurance premiums on mortgages that you paid.
Form 1098-T covers the money paid for tuition and related fees that taxpayers can use to obtain the credits and deductions related to education.
Form 1098-E reports interest on student loans, which are also often deducted.
Again, you can find information about these forms from other sources. But since the Form 1098 allows you to easily copy data directly into your tax return, the safest thing to do is to wait until they appear, usually by the end of January.
4. The statement of account for the year 2019
If you would like to receive from their financial providers reports at the end of the year to provide you with the backup required for income and deductions.
Availability of the final statements of banking and investment accounts will allow you to check the amount of income shown on your forms 1099, and Bank account records will also include the paid cost that can be deducted from your tax return. Similarly, credit card statements at the end of the year also can include the deductible expenses.
Get ready to wait
If you want a large refund, the waiting is the hardest part. To avoid unnecessary errors, it is best to remain patient and wait until you have all the information necessary for filing a complete and accurate report.