The Requirements for Filing Your Taxes
Your situation regarding money keeps changing day in day out. Because of this, it is important for you to consider whether you should hire someone to do them for you or you should handle them yourself. In case you don’t earn a lot of money and your situation is simple, you can do the taxes without involving someone else and by that avoid paying charges that are unnecessary. For all people who decide to follow this process, the Internal Revenue Service encourages it and has made it uncomplicated. When you want to file your taxes successfully, ensure you obtain all the required forms. You should prepare well by writing up a checklist of the places you have ever been employed previously and the banks and all financial institutions that you have accounts. After getting forms and statements regarding these fill them correctly. Ensure that you double check all the information on the records because for a company to replace a wrongly filled form it takes time.
There are penalties charged on people who make late filing and to avoid this; you should have enough time for filling the forms and forwarding them before time is over. The W2, being the most essential form needed when one is filing taxes, shows the exact amount of money one earns and that which is reserved for medical care, income taxes and social security. W2 form also includes the contributions you have made concerning child care plan, retirement plan or medical plan. At the end of February, the form W2 should arrive, and if by any chance you have not acquired it, you should consider getting a third party to get the form for you. You can get a properly filled form W2 by searching the internet which takes just a short duration of time.
In case you have a savings account or if you have other sources of income apart from employment, you will need a form 1099. In case you get interest on your savings account, form 1099 becomes useful. You should list all the places that you will be getting a form 1099 from and check that they get to you at the right time. The form 1099 that you need will depend on whether or not you are an independent contractor. Copies of the forms given by the companies are sent to Internal Revenue Service so you should make sure you fill in all information to avoid doing the wrong calculations.