Tax time rears its head annually each April, often leaving people in a tizzy over what forms and papers they need to file their income tax return. If you're wondering what you need to submit to the Internal Revenue Service by April 15, keep the following paperwork in mind.
Income Paperwork
Obtain tax forms from a local library or post office, or visit www.irs.gov to download and print forms. When you file your taxes, send in the original copy of each form (the other two copies are for state taxes and your records).
Your employer sends you a W-2 form, which shows your employment and income data; if you did not work in the past year, you need a tax-exempt 8843 form. You also need to obtain the following paperwork from the proper institutions: annuities and pensions; awards and prizes (file 1099-MISC); gambling and lottery winnings (file W-2G); jury duty pay; partnership and trust income; received alimony; scholarships and fellowships (file 1099-MISC); Social Security benefits (file SSA-1099, or 1042-S if you're a nonresident alien recipient of benefits); and state and local income tax refunds.
If you are self-employed, you need forms 1040 or 1099, and K-1s on all partnerships (the partnership management should supply the latter form). You need to keep track of documentation or receipts for business-related expenses, as well as farm income (prepare Schedule F).
Financial Assets and Liability Paperwork
You need to report your financial assets, so obtain the following paperwork from the proper institutions or people: dividend income statements (file 1099-DIV); interest income statements (file 1099-INT and 1099-OID); miscellaneous income including contract or freelance work or rent (1099-MISC); proceeds from broker transactions (file 1099-B); retirement plan distribution (file 1099-R); and tax refunds and unemployment compensation (file 1099-G).
In addition to your financial assets, obtain the following financial liability paperwork from the proper institutions: auto loans and leases (including account numbers and auto value, and if you use the auto for business purposes); early withdrawal penalties on certificates of deposit and other time deposits; and paid student loan interest (file 1098-E).
Deductions Paperwork
Qualified deductions will help you out on your tax return, so get the following paperwork from the appropriate institutions: education expenses (if you qualify for Hope or Lifetime credits, for instance); investment expenses (your broker supplies some information; you're responsible for keeping track of areas like phone and travel); medical savings accounts; single donations of $250 or more to charity; and tax return preparation expenses and fees.
You need to keep track of certain deductions yourself, including adoption expenses; child care expenses; education expenses; job-hunting expenses; paid alimony (with recipient's Social Security number); nonreimbursed expenses for volunteer work; nonreimbursed job-related expenses, such as entertainment, subscriptions, travel, uniforms and union dues; and sales tax expenses (for which you need receipts for expenses or fill out an IRS-provided worksheet).
You must keep the following deduction documents: federal, state and local estimated tax paid for the current year, including canceled checks, estimated tax vouchers and other payment records; and medical expenses. If you have an IRA, Keogh and other retirement plan contributions, get the paperwork from your financial institutions.
Miscellaneous
If you are a homeowner or renter, obtain the following paperwork from the proper institutions: your mortgage interest (file 1098); sale of any real estate (file 1099-S); real estate taxes paid; and employer-reimbursed moving expenses. You must keep track of any rent you paid during the past year.
If you have suffered casualty or theft losses, you need form 4684. If you need personal property tax information for an automobile, the state or local taxing agent should give you that information.
Tags: paperwork from, following paperwork, following paperwork from, from proper, from proper institutions