Get Ready!

Tax Team is grateful that we are warmed by the hearts of our wonderful friends and family.  We hope you are staying warm in this very cold weather.

 Besides cold weather, Tax Season 2014, documenting income from 2013, is upon us.  Whether you do your taxes by yourself or with the assistance of a tax profession, it helps to have your information organized and complete before you begin.

The first thing to know this year is that the IRS and State will not begin accepting returns until January 31.  This is later than usual due to the government shutdown last fall.  There are two ways to look at this.  The first is if you need your refund right away, you will need to wait.  This is sad, and Tax Team, having been in that situation is sympathetic.  The second way to look at it, is that the IRS/State is taking extra time to be sure software is performing efficiently.  We are hopeful that some of the problems that arose last year can be avoided with a later start date.  If you have your documents ready before Jan. 31, you can still e-file your completed return and it will go into a queue to wait its turn to be processed.  It will not make any difference if you do a paper return:  no returns will be processed before January 31.

 While you are waiting for the IRS to go live, you can get your documents in order.  Tax Team suggests the expanding file.  Mark it “2013” and when you receive a statement in the mail immediately place it in the folder.  If you receive your information on-line, make a copy and place it in the folder.  Employers need to have your W2 available to you by January 31.  Some employers post on-line. Be sure to know your passwords and how to retrieve this information.  Sometimes you need your last paycheck of 2013- don’t throw it away!!! 

 You are supposed to receive most documents by January 31.  Besides W2, some others you might be receiving are tuition statements, certificate of rent, the 1099 if you worked as a contractor, your Social Security for the year and retirement/pension documentation.  If you have bank interest more than 10.00 your institution needs to send you a statement.  Did you take advantage of a promotion where you received money for opening an account?  Surprise!  The IRS taxes that income, and you will receive an interest statement. Brokerage statements need to be accessible to you by February 15.

Next week:  Organizing deductions

Stay warm and safe!  

Do you have a tax question or comment?  We want to know!  Email Tax Team at john.lawless.tax@gmail.com  Thanks!