Tax Filing Tips: You’re 5 Key Words Away

Yes, that dreaded (you owe) or elated (refund!) day is coming Wednesday, April 15. That’s why the experts at Vickney & Associates want you to remember these key words: Gather. Update. Itemize. Retire. Code. Each contains helpful tax filing tips, so you’ll be ready for Tax Day either way.

 

But First, Organize

Before we dive into the 5 words that will help you file this season and in the future, it’s important to get organized. We’re not saying you need to create a sophisticated spreadsheet; just know what you have where. Something as simple as keeping a larger file folder or envelope handy to contain all the 2019 tax related documents you need and receive will help you know where to go when you’re ready to file.

 

5 Words, 5 Tips

  1. Gather. Be sure to gather all tax documents such as, W2’s; 1099s for interest and dividends; 1099 B for any stock transactions; 1098 for mortgage interest; any amount you paid for real estate taxes; and a summary of your charitable giving along with supporting documents. 

  2. Update. The only way to ensure you have all the necessary tax documents you need for filing is to make sure each organization you deal with has your current information. Relay any changes in address, dependents, emails, and phone numbers to those entities, as well as on your tax filing forms.  

  3. Itemize. While many individuals do not itemize for federal, there is still an itemization for WI. For instance, health insurance premiums are itemized deductions you can claim in Wisconsin.

  4. Retire. This serves as your reminder to take advantage of the tax savings you receive from making contributions to your Individual Retirement Accounts (IRAs) and 401(k)s. Also, if you are required to take an RMD (Required Minimum Distribution) from your IRAs and gave it directly to charities (QCD or Qualified Charitable Deductions), bring brokerage firm documentation showing that the money was sent directly to the charity.

  5. Code. Make sure you know about any tax code changes that could impact your 2019 filing. For example, a 2018 tax code overhaul lowered most individual tax brackets so that workers would get more money in their paychecks. Not sure what tax codes apply to you? Contact us  at Vickney & Associates for details. 

 

Need Tax Assistance?

Because the tax filing process can be overwhelming, the professionals at Vickney & Associates are here to help. Call us at (262) 673-6322 or email us at info@vickneycpa.com.