Being Disorganized Helps the IRS Out

climbing paperIt’s that time of year again! Filing taxes can be a stressful process, especially if you have not stayed organized during the year. With April 18 being the deadline this year, there is still time to backtrack and get everything in top order if you don’t wait until the last minute. No matter if you are preparing your own taxes or working with a CPA, the best thing you can do is go down the list of all the necessary items and have them in tip top shape when you sit down to tackle the forms for filing.

“We have seen it time and again when folks bring in the necessary items for us to prepare their taxes, but they are completely disorganized, and this can impact the bottom line if you qualify for a refund,” said Greg Barton of Barton CPA. “We are very good at helping folks unearth deductions they might not have thought of, but when they have files of information in no particular order things can get left behind when they try to piece items together.”

refundTips for creating a clean and well-organized filing system include arranging tax documents in a clear order. Start by going down the list of standard deductions people take and put them in separate folders:

  • Income and expenses
  • Mortgage interest
  • Property taxes
  • Retirement savings contributions
  • Dependents, and the various items you can deduct for them from childcare, school tuition, and more
  • Health insurance verification (1095A or 1095B letter from your insurance)
  • Medical expenses
  • Charitable contributions

Other documentation you may forget or not even be aware of includes:

  • Reinvested dividends
  • DMV vehicle license feewaiting in line
  • Mortgage refinancing points
  • Moving expenses for a job
  • Educational expenses
  • Student loan interest
  • Sales taxes for a big purchase
  • Job hunting costs
  • Energy efficient home improvements

The above-noted items are just some of the possible deductions to review and determine if you qualify. There are many other atypical areas that can be explored, which your CPA can prompt you about to determine if a write-off is legitimate. Barton CPA are well-versed with the latest training and technology to be current in all aspects of tax deductions. To find out more visit www.bartoncpa.com or call (760) 969-6499.

 

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