Tax season is upon us . . .
Like Spring, tax season brings calls for its own showers. The only difference is that these showers are not located outside and do not come from clouds, rather, they are located on your face and come from your eyes. Tax season may not be your favorite time of year, but you still have to do them to avoid any penalties or worse! If you follow these 3 steps to get organized for tax season, you’ll find that they really aren’t all that bad.
- Your W-2 Is Your Friend, Not Your Enemy
At the end of January, you should receive a W-2 form showing how much you earned, what was withheld, and what was taxable. You should get as many W-2s as you have jobs—so if you have 2 jobs, you should receive a total of 2 W-2s (one from each employer). If you’re an independent contractor, a 1099 is the form for you.
- The Other Things the IRS Taxes You For
The IRS taxes much more than just your wages earned. Are you saving up for your child’s college tuition? Interest earned on most savings is taxable. For these interest earnings, a 1099-INT is what you’ll need.
- How to Trim Your Taxes
The best way to start cutting down on your taxes is by starting at home. The interest you’re paying on your mortgage is tax deductible! Your lender will send you a 1098 with the amount you’ve paid in interest, and if you’ve made an extra payment at the end of the year, make sure that it’s noted on the 1098.
Making sure you’re prepared for tax season is sure to reduce your annual Spring headache. One of the biggest reasons that people detest tax season is because of their own doing: they simply are not prepared. Having to run around last minute to make sure they have every form causes that headache. To prepare for tax season, or for information about how your Texas homeowners insurance policy protects your loved ones, contact VGW Walker Insurance.
