Every year the tax code seems to get more complex and confusing, which is especially true this year with the new tax laws. The documents and information below will help expedite your return preparation and allow your refund to arrive that much sooner. These are also crucial steps to ensure you are properly protected in the event the IRS or your state decides to audit your return.
Proactively and promptly review your W-2s and 1099s
Companies have a deadline of January 31st to provide these forms to employees and independent contractors. Be sure to thoroughly review these forms for accuracy as soon as you receive them. This will allow any errors to be corrected prior to when you attempt to file your return.
Investment accounts can issue amended statements
It is important that if you receive a follow-up investment statement marked amended to determine what items have changed. Getting the updated statement to your accountant promptly will prevent having to amend your return after the fact.
Documentation for itemized deductions remains important
Despite changes at the federal level that eliminated a number of itemized deductions while raising the standard deduction, Minnesota is one of many states that chose not to follow suit. For those states, you will still be able to take deductions for items such as investment fees, unreimbursed employee expenses, tax prep fees, etc.
Charitable donations require substantiation
Documentation supporting the amount of tax-deductible charitable contributions is required for any donations made during the year, including noncash donations to places like Goodwill or The Salvation Army. A contemporaneous written acknowledgment from the organization is required for any contribution of $250 or more.
Filing your taxes should never be stressful. At Malloy, Montague, Karnowski, Radosevich & Co., P.A. (MMKR), we strive to make things as simple as possible by handling the complexities for you while also looking for tax planning opportunities throughout the year. Whether your tax situation has changed or you simply want the comfort that comes from having a professional prepare and review your tax return, call our office today to schedule an introductory meeting with one of our accountants.