Death and Taxes...

Ok, well hopefully not death but you will soon be hit (if you haven't already) with W-2's, 1098, 1099, Federal ID numbers, and seeing all those goofy characters dressed up waving to you...somehow that is supposed to remind you to do your taxes?? Either way, if you're like me, you have no idea what you need or what information you should know before doing taxes. Taxes can seem much bigger than you can even tackle yourself.

We go to H&R Block to do our taxes. One reason I do this is for the simple fact that I know NOTHING about doing taxes and although I'm sure Turbo Tax is great, I want to get the most out of my tax return. Without the knowledge, I feel like going to a tax company is my best bet. Not to mention, our tax person is a retired teacher and knows how much we really do spend each year on supplies for our classrooms.

What's great is that each year they send us a list of what information we will need to get the most "bang for our buck" and so that we are prepared for the process. I'll share that list so that you can make sure you have everything you need- whether you go to an accountant, tax company, or do them yourself.

First things first: You'll need your return from last year. If your name changed or you are now filing jointly, it will be important to have this information. If you go somewhere and have used that in the past, they will most likely have a copy in the computer system so it may not be as necessary. But always be prepared. And don't forget to bring federal, state and local information.

Next, you want to make sure you have SSN and birth dates for everyone on the tax return. This includes you, your spouse, children, and any other dependents- too bad doggies don't count. 

Certain forms you'll need are as follows:

• W-2, 1098, 1099, or Schedule K-1: I'm not sure what all of these are but your W-2's are what your employer is required to give you with regards to your earnings and deductions for last year. They have until January 31st to send these out and although a lot of companies are going with online or direct deposits with pay checks, they are still required to send you W-2's hard copy. 
• Any contributions to IRAs or retirement plans: I know for me, I have mine retirement money taken out of my check (pre-tax), so it shows up on my W-2. But again, it's not a bad thing to be prepared and verify that amount. This is your retirement after all.
• Interest paid on mortgage, real estate, or personal property tax: We have our mortgage through Chase and with the last statement of the year, they send us a print out of how much interest we have paid over the last year. I imagine they aren't the only company to do that. 

When it comes to investments or income, you'll need the following:

• Any income or expense reports from work. This means anything that isn't shown on your W-2. Being a teacher, I really don't have much with that but I do keep receipts of anything I buy for my classroom. If you're a teacher, you know that money adds up.

Charitable Donations: Noah and I donate anything that doesn't sell at our yearly yard sale so we can usually rack up a good amount of stuff here.

• Records of any amounts donated to houses of worship, schools, or other charitable organizations. I may be wrong but I believe this includes tithes. At church last week, our pastor mentioned that the tax information was available in our mailboxes. Not sure how I feel about this with regards to morals and if it's a "donation" but it is money you give to the church. So you can gauge that one for yourself. 
• Records of non-cash charitable donations: This is where our Goodwill stuff comes into play. When they give you the receipt at Goodwill, they usually won't put an amount down; only the bags, containers, or pieces you've given- not a monetary amount. You can find a list of prices here. (Click on the blue "donation guide" to get the list.) Be sure to add those pieces up to have an accurate representation of your donation. If you use a company for taxes, they may want specifics so that you don't audited. If you do the taxes yourself, it may be a good idea to keep an itemized list of what you've donated for the same reason.
• And a record of any miles you've driven for charitable purposes. You'll get to write off the federal amount per mile- which again, can add up.

Lastly, would be any deductions or expenses or miscellaneous items. These aren't usually ones that I think of when doing my taxes but can save you a lot of your return.

• Number of miles you've driven for medical purposes and amounts paid for health care. That usually doesn't do anything for us because we have pretty good plans but it may help you. Again always have it just in case. 
• Records of childcare and higher education costs. This is HUGE! You get a certain percentage back on childcare (unless you pay a sitter "under the table). And higher education can get you more money on your return as well. Always take that with you.
• Employment related expenses: This is a little tricky. Technically, because I'm expected to dress up for work, I could write off my clothes. However, if I were audited, I'd have to prove that they are strictly for work and, for me, that's not the case. However, if you are required to buy your own uniform, uniform cleaning, tools, etc., that is a write off for you. Have receipts for all of those things. 
• If you are currently unemployed, bring records of any job search expenses and unemployment income. 
• And finally any HSA contributions, moving expenses, and student loan interest. I'm not sure why student loan interest is in this category because it is also listed as a 1098-E form. Either way, make sure you have it.

 I hope that helped you organize your forms for tax season. It's not the greatest time of year but this information should help you get the most back from your return.