Checklist – All you need to find a Successful Tax Day

So, The Tax Day is here, and if you are searching for the best accounting firm in Hounslow, as ITR Filing Deadline will soon be knocking on your door. Are you ready? Have you completed your homework? If not, and looking for some suggestions, we are here. We will let you know how you can proceed with the same.

Hiring a professional Accountancy in Feltham or getting it done yourself, but before that, you need that important information and documents handy to proceed with filing Income Tax. Then why not prepare a checklist that may help you not committing a mistake to complete the job. Let’s start

Checklist - All You need to find a successful Tax Day

Personal Information

As per Accountancy in Surrey, the Starting point could be your last year’s filed ITR, which actually may not require, but will be the right point of reference for this year’s return. Details like your PAN, AADHAR, and other Social Security Number and the same details of your dependents, spouse, kids, and parents.

Income

Recollecting all details relevant to your income, TDS declaration form, W-2 Forms from your employer, Do check your mailbox too whether physical or electronic and also with Accountancy you deal with. 1099 Forms with a different suffix. For payment against contractual works. Payments through PayPal, Amazon, etc. Interests from Fixed Deposits, Recurring Deposits. Dividends, Income from Shares, Other interest components from recent investments, etc.

If you have any property that you have rented to someone. The earnings coming out of this property is also taxable. Don’t forget to include them.

Deductions

Accounting for deductions that you have come across helps you to reduce your taxable income considerably landing on a lower tax bill. If you are strong on documentations then you will be able to claim deductions quiet easily. Check your files, documents that you have collected in this duration. Claiming these deductions does not only help you to reduce your tax bill but will also help you in times if your Return gets audited. To claim benefit from deductions, you don’t have to itemize them. These are already listed on Form 1040.

Contribution to your retirement account – Whatever you have contributed for your retirement fund, you are eligible for deduction. Whether it is traditional IRA /EPF or your self-employed retirement account / PPF. Claim it.

Educational expenses – Parents/Students should claim a deduction against paid tuition fees they paid, also include the interest paid on a student loan. For the acceptance of your deduction towards IRS include Form 1098-T, which indicates your education transactions. Form 1098-E has all those details needed with respect to your student loan. You can take the help of a Bookkeeper near you

Medical bills – Don’t forget that your Medical bills could also provide tax savings, but they have some conditions which your hired Local accountants in Feltham will let you know.

Property taxes and mortgage interest – This too is an important component. Remember if your mortgage payment includes an amount escrowed for property taxes. It will be mentioned on Form 1098 which you must have received from your lender. This document shows the amount of home loan interest is claimable.

Charitable donations – It’s good if you do charity. This is a good gesture by which we can support humanity. And if you do so, do keep your receipts for these charitable donations for you to claim while filing your returns.

State and local taxes – You should also deduct various other paid taxes, including state and local income or sales taxes up to the certain limit and including property taxes that you have paid. You need to have the receipts for the same so just go and find them.

Credits

Let’s move on to the next thing needed in our checklist, yes the credits.  As per Tax advisors, they are the close relatives of deductions. Lifetime learning credits are an example of the same. They can also help you to save lots of money if you have the documents in place. For claiming you will need them.

Payments

What about payments that you have made, which can reduce your tax liability. Let’s check that also. If you have made any of those taxable payments, include the numbers in your list too as they are also an important component for which you should start Looking for Accountants or Bookkeeper near me.

The above tax preparation checklist has been prepared by Management Accountants in London, envisage preparation issues that are very frequent with most tax filers, but taxes may vary for each of us. Depending on your requirement, prepare a tailor-made list for yourself and relax.

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