Wednesday, January 4, 2012

Gather Documents Together Now For Tax Preparation

Some things are an absolute certainty and one of those is taxes. Michael Devine with the Internal Revenue Service says that now is the time to start getting ready to file.






Things that Devine recommends gathering together include receipts, the total paid for day care and the day care provider's identifying nuber, a copy of last year's federal and state returns, and all income documents.






One reason for starting now is if you find you are missing records to verify a purchase of deductible items, you still have time to get duplicates.






As you are going through your records, you will also want to shred any outdated documents. Generally, tax records should be kept for three years while documents such as anything relating to a home purchase or sale, IRAs or rental property, should be kept longer. For answers to any of your tax questions, go to IRS.gov.

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