To Do List (January)

calculatorformsMany tax records show up in your January mail. Collect these documents and keep them in a special place. Make sure you have the following forms:

W-2’s
Read them carefully because if there is an error you will need to contact your employer. If you can’t locate the employer, you will need to collect your pay stubs.

1099’s
There should be a 1099-INT or 1099-DIV for each account which pays you interest or dividends. Even tax-exempt interest must be listed on your return. If you have sold any stock you should receive a 1099-B. The sale must be reported and you may need to locate additional documents that show the original purchase of the stock. Social Security benefits paid to you are reported on form 1099-SSA. The actual form is needed to determine if any of the benefits are taxable.

1098’s
That’s usually your mortgage interest. Banks and other lending institutions use form 1098 to report to the IRS the mortgage interest paid by you. This is also one of the many electronic “matching” items that are compared when you file your return. IRS may contact you if these amounts are not the same. If you receive a 1098-E form, that reports the amount of interest you paid on a student loan. Form 1098-T lists college tuition paid and may help you get valuable tax credits or deductions.

Any Other Income Forms
Look for other reports of income. You may see forms for state tax refunds, unemployment income, prizes, gambling winnings, debt cancellation, or rents you collect. Read each one carefully.

Documents and notes gathered from December To Do List
Review your calendars and bank check registers for possible deductible expenses. Many tax deductions go unclaimed because we don’t take a few minutes to review our check registers. Check your records carefully, after all, it’s your money. Lets make sure you keep it.