Editor’s note: This is a transcript of the audio file.
It’s a new year and that means tax season is here. Get everything organized ahead of time with these easy tips.
I’m Kristin Arnold with your Bankrate.com Personal Finance Minute.
First, round up everyone’s social security number. For single folks with no dependents this is an easy step, but with kids and a spouse joint-filing, you’ll need everyone’s id numbers, if one is missing it can cost you.
The next essential is a W-2 showing exactly how much taxable income you earned. By the end of January, every employee should have gotten theirs from their employer.
For the self-employed track down all receipts and documentation for business related expenses.
Another vital piece of information is the amount of interest you’ve earned on all your taxable accounts, that includes savings, interest-bearing checking accounts and brokerage accounts.
Next, do the pre-filing work that could help trim your taxable income. The interest you pay on your mortgage is deductible and your lender will send you a form 1098 with the amount.
For more ways to get organized for tax season, visit Bankrate.com. I’m Kristin Arnold.