Track down your shoebox full of dusty 1099s, bank and mortgage statements, child care expenses, insurance statements, investment documents, sales slips, credit card receipts, and charitable contributions and get ready to reveal all to Uncle Sam. “Get everything in writing” as the old saying goes, and it also applies to your tax papers. Here is a listing of the typical paper you’ll need to gather (it’s painful but you gotta do it):
Personal Income Records (The money you make):
Pay stubs and records relating to tips, interest and dividends, tax refunds and/or credits from local government, alimony, capital gains/losses, business income/loss, IRA distributions, annuities, social security, pension, unemployment compensation, agricultural payments, moonlighting income, and winnings from gambling.
Medical Expenses Records:
Records for health insurance premiums, long-term care premiums, prescription medications, insulin and insulin treatment, guide dogs, physical/occupational therapy, acupuncture and chiropractic treatments, x-rays, lab work, nursing care, hospital bills (include food), long-term care services, podiatrist bills, glasses/contacts/hearing aids/braces/crutches/wheel chairs, out-of-pocket doctors’ bills, out-of-pocket mental health bills, ambulance services or travel expenses related to medical care (include gas, parking and tolls), alcohol or drug treatment, and treatment programs and prescription drugs designed to help you quit smoking (except for over-the-counter patches)
Records for Taxes Paid During the Year:
Records showing the amount you paid in state and local taxes, mandatory contributions to your states’ workers’ compensation or disability-benefit program (CA, NJ, NY, RI and WA), records relating to your taxes for non-business real estate, records for any refunds or rebates you received for real estate taxes the same year you paid them, personal property taxes.
Interest Records:
Records of mortgage interest payments (Form 1098) and other records documenting mortgage interest payments if you don’t have a 1098 that comes in the mail. Also keep records of your payment of points if not otherwise reported on Form 1098, refinancing records and any money borrowed for home improvements.
Non-reimbursed Employment Expenses:
Any kind of special tools or clothing you require for your employment that you paid for out of pocket. This also includes licensing fees, membership dues for professional organizations, subscriptions to professional magazines, job-related educational expenses, records relating to the use of your home as a home office, travel expenses and commuting costs (but only if your job is temporary and you do not work there for more than one year).
Theft and Casualty Losses:
Records of all property losses due to fire, floods, earthquakes, vandalism, accidents, federal disasters or theft. Also keep records of appraisal fees and photography expenses incurred for the purpose of proving you had a loss.
Charitable Donations:
Receipts from charitable organizations for money or property you donated and a record of travel expenses relating to your volunteer work, including mileage, tolls and parking.
To learn more about taxes and the IRS, see the following articles:
The Free Advice Guide for Filing Your 2006 Tax Return
How to Get Help Preparing Your Tax Return
When You Have to File Your Tax Return Late
When You Need to Pay Your Income Tax Late
Do I Have to File if I Live Outside the U.S.?
What Will It Cost Me to Get My Money Early?
Free Tax Debt Analysis!
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