Tax season is fast approaching, so you may find yourself with some important tax questions. This article will cover some of the pitfalls of this process to make sure that you get the most out of your taxes this year.
- Don’t file too early! You may be eager to file your taxes to get your return as soon as possible, but filing before you have all your documents can actually cause delays in getting your return. It’s best to be patient and ensure that you have all the documents that you need for submitting your taxes.[1]
- Gather up all the documents you’ll need beforehand. You’ll need to know your own social security number, the social security number of your dependents, and receipts if you are planning on itemizing your deductions. You also may need some of the following documents[2]:
- A W-2 if you are still working.
- A 1099 for other income (such as dividends or interest).
- A 1098 to report mortgage interest you paid.
- A W-2G if you have any gambling winnings to report.
- Make sure your social security number is accurate on your forms. Your social security number is very important when the IRS is identifying you and your records, so you should double- or triple-check that that information is accurate on your paperwork.[3]
- Similarly, make sure that your name is spelled correctly and matches the social security number that you provided exactly. The name on your social security card is the exact name that you should be using when filing–the IRS uses that name and your social security number to find your records.[4]
- Make sure that the numbers you are entering are accurate. It can be easy to mistype or miswrite numbers when you are dealing with so much information. And tax software can make it feel easy and seamless to enter all the info, but make sure that you don’t put in the wrong numbers![5]
- Take a break! It can be important to step away from your tax documents every now and then so that you don’t burn yourself out. It can be much harder to see errors if you’ve been staring at something for a while. So… step away, take a break, do something you like, and then take another look and ensure that your info is accurate.
- Make sure you sign your documents! This may seem obvious, but a tax form is not valid without a signature, and it can be easy to forget.[6]
As you can see, accuracy is the most important thing when it comes to tax documents. If you are serious about improving not only how you handle your taxes but also how you handle your finances in general, Click HERE to sign up for a complimentary review with us at Mercer Advisors, Formerly Epstein & White.
[2] https://www.investopedia.com/articles/pf/07/tax_prep.asp
Please Note: Epstein & White is a tradename. All services provided by Epstein & White investment professionals are provided in their individual capacities as investment adviser representatives of Mercer Global Advisors Inc. (“Mercer Advisors”), an SEC registered investment adviser principally located in Denver, Colorado, with various branch offices throughout the United States doing business under different tradenames, including Epstein & White. Information contained herein is for informational and illustrative purposes only and general in nature. It should not be considered investment advice or a recommendation to buy or sell any type of securities or insurance products and no investment decision should be made based solely on any information provided herein. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas. Investment in securities carries a risk of loss, including loss of the principal amount invested. Different types of investments involve varying degrees of risk. It should not be assumed that diversification or asset allocation protects a portfolio from loss or that such will produce profitable results. An annuity’s guarantee is subject to the claims-paying ability of the issuing insurance company.
