Tax Season: Compiling Receipts And Tax Documents

January 16, 2018

As tax season approaches, the rush to compile needed receipts and tax documents can be overwhelming. Taking extra time to organize these documents upfront can save you the trouble of misplacing or overlooking essential information needed to file your tax returns.

Johnson Price Sprinkle PA (JPS) accounting firm recommends having a filing organization system in place to help you separate out important tax documents from other mail. Separating your tax documents as you receive them and placing them in a secure location, whether in a filing cabinet or scanned onto a computer, allows you to keep everything together for ease when you need them.

What should you look for in the mail? The most common forms are:
W-2 for employees
1099-INT for interest income
1099-DIV for dividend income
1098 for mortgage interest
1099-B for broker transactions.

Some other common forms are:
1099-MISC for independent contractors or rental income, and,
1095-A, 1095-B, and 1095-C for health insurance.

These forms must be mailed to you by January 31, so you should expect them no later than early February. Some items like brokerage statements may take longer or be amended after you first receive them. If you are unsure if a document or information is related to your tax returns, consult with your accountant to see if the item is needed.

Other documents that you should separate and keep with your tax documents are medical receipts, charitable contribution statements or receipts, receipts related to a business or rental property, and property tax bills. Talk with your accountant for a more extensive list of receipts and expenses to collect.

As your tax file nears completion, take time to compare tax documents with prior year tax returns to make sure you are not missing any items. Staying organized can save you time and stress.

It’s also important to keep in mind that most of the provisions in the Tax Cuts and Jobs Act that passed last month became effective January 1, 2018. While working on gathering 2017 tax information, it’s also a good time to start considering the implications of the new law.

Click on the following  for helpful JPS articles summarizing provisions of the Act:
 Highlights of Significant Provisions: Tax Cuts and Jobs Act – Individual Provisions
 Highlights of Significant Provisions: Tax Cuts and Jobs Act – Business Provisions

Click here to learn where JPS will be providing The New Tax Law: What Does It Mean For Your Business & You? presentations beginning next week.

Need assistance with your business or individual taxes?
Contact JPS to help you understand and consider actions to take in-light-of your specific goals.

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About JPS:
Johnson Price Sprinkle PA is a 60+ year old accounting firm providing small to middle market businesses with tax, business consulting, audit, fraud, and technology solution services. With offices in Asheville, Boone, and Marion, NC, our CPAs and JPS team strive to provide personal service alongside technical expertise resulting in our clients’ long-term financial success. We also invest time and energy in our community, taking pride in doing what we can to make Western North Carolina a better place. JPS Mission: To Be Greater by positively impacting our Clients, People, Community and Profession.