Thursday, January 7, 2010

Tax Preparation - How To Make The Process Easier

The holiday season is over, hopefully it has produced some great memories, but alas, it is time to get back to work. It is this time of the year that the government particularly wants you to get to work gathering all your paper work for the end of the year tax preparation.

Using a Naperville accountant to file taxes makes sense. Undoubtedly, they are better informed and are updated on the new and changed taxes laws. Using a professional accountant has definite benefits over using the internet to file on your own. Even if you only have a part-time income or a minimal amount of income for the year an accountant may still be able to find ways to get you a better return. Let us help you keep more of what you have earned.

Working with an accountant on your tax preparation will require gathering together all of your financial information. There are methods to make this process less burdensome. The best way to be prepared for this year's tax preparation is to have started with a complete filing system immediately having filed last year. However, if you didn't do that, there's no better time than the present.  First begin by creating a filing system and label all of your folders with the proper identification such as Income, deductions, receipts, and records.

You should also create an income folder that includes any w2's for the year. You may have several w2's if you worked for more than one employer during the year. If you worked on a freelance basis then you should receive form 1099's from any client that you did more than $600 worth of work with. Your income folder should also include any investments that you may have had during the year. This may include dividends and interest income and a 1099-DIV or 1099-INT for this income.

You will also need to gather together all of your deduction information and place it into a folder marked deductions. Your deductions may include any charitable donations including any receipts for material donations such as clothing or furniture. All of these types of donations are deductible. You should also have records of any student loan interest, mortgage interest, military expenses, moving expenses, self-employment expenses and taxes, tuition, property taxes, your tax preparation fee and medical expenses.

You may also want to keep a separate folder for all of your receipts pertaining to all expense including those covered by the deductions folder. Or you may decide to keep these in the deductions folder. Either way in order to claim a deduction or expense you will need a receipt.

There is other information that you may also want to keep track of including investment property income and expenses, vehicle registration, any property theft and social security income, you may also keep track of any gambling losses. The good thing about getting organized for Naperville tax preparation is that you will have the filing system in place to use for the following year; the trick will be to keep it up and be sure to file things throughout the year.

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