What Do You Need To File Your Taxes?
Filing your taxes can be no doubt a tiring task as it involves quite a lot of documentation and all of which must be submitted on time. At such a crucial time, it is essential to make sure nothing gets left behind. Here is a complete list of all that you need to file your taxes;
List of Things You Need
Personal and Dependent’s Information
This includes your and your spouse’s social security or tax ID number or your LLC tax ID number. Alongside, dates of birth, childcare records, other adult’s income in home and form 8332 showing the delivery of a child from custodial parent to non-custodial parent, if applicable.
Sources of Income
Fill out forms W-2 for employed and state tax refund (1099-G) for unemployed; Schedules K-1, Forms 1099-MISC, records of income to verify unreported amounts on 1099s; records of all expenses made; assets used in business and related information for depreciation; if there is an office space at home; other rental and retirement incomes; savings, investments and dividends and other incomes and losses.
These include ownership, medical expenses, charitable donations, childcare expenses, health insurance, educational expenses, tax prep fees and job expenses, retirement and other savings, local and state tax or sales tax, and federally declared disaster.
Sole Proprietorship and LLC is Different than Corporations and Non Profits
It is ideal to know the difference between the type of business entity you hold and the tax it demands from you. A sole proprietorship declares you as the sole owner of the business while a partnership means there are two or more than two business owners. A limited partnership is more complicated to set up and requires to be mentioned in one’s income tax. LLC and corporations are a little bit more complicated to set up and maintain, but they differ regarding their taxes. LLC requires being mentioned in personal income tax because it does not have a separate tax entity (LLC tax ID number is your own) whereas certain types of corporations do have their separate tax entity.
More often than not, filing your tax can come with a lot of hassle, therefore, having a qualified professional accountant well versed in dealing with similar situations in the past can prove to be very beneficial in ditching any problem that IRS might point out later on.
This is very important because a delayed entry is the last thing you want after going through all the process of documentation for filing your taxes. Take care of the deadlines, and you can save yourself the trouble of delayed entry.