Getting ready to file your tax return? One way to make sure this process goes as smoothly as possible is to make sure you have all the documents necessary to prepare your return. Getting your paperwork organized helps you avoid delays when filing your return, and also ensures your return is complete and accurate when prepared. Below is a list of the top three documents that will hold up the preparation and filing of your tax return:
Document 1: Health Insurance Forms
When filing your tax return, you are required to state whether you had health insurance coverage. If you did not, you will have to pay a "shared responsibility" payment. Tax professionals must complete this section of your return based on the information provided on the Form 1095. Whether you obtained health insurance via your employer's health insurance provider or the federal/state health insurance marketplace, you should have received this form. For more information about Form 1095, click here.
Document 2: Form W-2's
Missing Form W-2's can also cause delays in filing your tax return. If you worked with more than one employer throughout the year, be sure to obtain W-2's from each of them before filing your return. A W-2 would be required by an employer, no matter how long you worked for them or how much was paid to you. If you chose to leave off a W-2, it may not delay the filng of your return, but it can cause tax problems later if, as a result, the IRS realizes you did not pay the correct amount of taxes because of this exclusion.
Document 3: Form 1099-MISC's
If you worked as a contractor and was paid $600 or more, you should expect to receive a Form 1099-MISC from the company who engaged you. If you performed contract work as a corporation, you may or may not receive this form depending upon the type of services you rendered. Click here for more information.
Whether you receive this form or not, the IRS still requires the filing of a tax return if you had $400 or more in net earnings as a self-employed business.
In closing, avoid delays in filing your return by making sure you have all the documents listed above when you go to have your return prepared. In addition to the most common documents listed above, there is other important information, that if left off your return, could cause your return to be prepared inaccurately. To help you get organized, click below to download our complimentary tax organizer booklet:
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