Tax day is quickly approaching. If you have not yet filed your taxes, it’s time to do it, and quickly.
What should you bring with you to your appointment?
- 1. W2’s and 1099’s
- 2. Mortgage interest
- 3. Medical expenses
- 4. Child care totals
- 5. Home office write off’s
- 6. Earnings, interest, dividends, etc.
- 7. Dependents social security numbers
- 8. Child support payments
- 9. 1098 College interest payments
- 10. Income from sales of stocks
- 11. Etc.
What you should bring with you to your appointment with the accountant really depends on your household and your situation. While it’s not the end of the world if you forget something, it will prolong the filing of your return and ultimately if you are getting a refund, delay when you get it.
After your accountant inputs all of your information he/she should be able to tell you what amount you owe the government, or will be getting back. In either case, if the amount of your refund or that you owe is a considerable amount, you need to consider updating your w4 form with your employer. Some people like having extra taxes come out so that they are getting a nice return each year. But really, that doesn’t make much sense. Why let the government have your money when you could be investing that money and getting a return? Which is better than having the government return your money!
The W4 form can be edited throughout the year. The best way to determine how much to claim, is to fill out the worksheet that comes with the form. You may be surprised by how much you can really claim, and therefor keep each pay. The number of dependents you have is the biggest component, but income based on household size is also how it is calculated.
If you feel you are not responsible enough to save money in a savings account, then consider investing your money in bonds that can’t be touched for a locked in number of years and will yield a healthy return. This is a great way to save for upcoming expenses (i.e. a new home, new car, college, retirement, vacation, etc.). This is a long term goal however. Not a good option is you are going to need the money 6 months from now. In that case just putting it in a savings account or investing in stocks is a great way to keep your money where you can get it, instead of letting Uncle Sam keep it for 12 months and then take his time returning it to you.