One of the most sure-fire ways to guarantee wealth and security is to pay attention to your personal finance situation. The more you know about personal finance the more money you will save. You’ll also make better financial decisions in general. I recently came across a great resource that lists the best personal finance blogs of 2016. Here’s the link to the article. The list was actually voted on by readers, so the top site, Cash Cow Couple, is a site that a lot of readers recommend. There are many other sites on the list that are worth checking out too like Dough Roller and Mr. Money Mustache. All of the sites on the list are great for inspiring you to manage your money better.
For some, it may be the most wonderful time of the year- Tax Season! Whether or not this is true for your situation, filing taxes is a civic duty, therefore there is no way out. Here are some of the most common forms of documentation you will need in order to file your taxes. Happy filing!
Personal and Identification
First and foremost, the most important thing you’ll need to have alongside you when filing your taxes is your social security number. This is a form of identification that is used to identify you as a taxpayer, and without it, you will not be able to file your taxes. If you have misplaced your social security number, be sure to contact your social security office. Bringing a copy of last year’s taxes may be helpful to you as well, especially if you’re filing on your own. This will help you answer any simple questions that you may have during the filing process. If you’re expecting direct deposit, bring along your bank account and routing information for an easy way to receive your processed return.
A W-2 Form is required to file your taxes as this form shows how much money you’ve earned throughout the year. As long as you bring this form along, your taxes will be simple to file.
The tax filing process begins to get tricky after you learn where you’ve spent your money throughout the year. If you have any type of investments, such as property, stocks/bonds, or have done any type of freelance work, you should receive a 1099 form in the mail. This form will be required for the tax filing process, as you will enter how much of your earning from your W-2 was paid into taxes for your investments.
If you are recently attending a higher education institution, you will receive a 1098-T form. This from is used to show how much you paid to higher education which will be written off when you file your taxes.
A 1098-E form will be sent to you if you have a mortgage, private loan, or debt (such as educational loans).
Throughout the year, it’s important to keep track of records, whether digital or print receipts. Records should be kept for the following; job search/ work expenses (that you paid yourself), medical care payments, contributions or donations, childcare, rental expenses, educational expenses (supplies, transportation, etc.).
If you receive any additional forms or records in the mail from the IRS, you should bring them along. Your account will be able to determine which forms will be needed, but it is always better to be safe than sorry.