financial bookkeeping tips for contractors

What to Bring to Your Tax Preparation Service

If you have set up a meeting with a tax preparation service of some kind, then you will need to know what to bring to your meeting so that the accountant, CPA, or other tax preparers can effectively do your taxes beyond documentation supporting your identity. You will need to bring paperwork that shows your income for the year, and any expenses that could count as tax deductions, so here's a look at the specifics of each requirement.

1. Income Paperwork

The most important part of doing your taxes is to make sure that you have all the paperwork needed that shows how much you have made over the past year and all the taxes that you have already paid. For example, you will want to bring W-2s if you are a regular employee, 1099-MISC paperwork if you are an independent contractor or otherwise self-employed, and a 1099 DIV form for dividend income. You may have other forms of taxable income, and you will want to review what is included and find documentation for the entirety of it. This way, your tax preparation service has all the information it needs to properly file your taxes.

2. Proof of Deductions

There is a wide variety of tax deductions and credits that people can earn, from small business expenses to property taxes paid. When you meet with a tax preparation service, you should have already reviewed at least some of your options for earning these forms of tax reduction and bring paperwork as proof. For example, you should be able to prove expenses related to any self-employment income, and any property taxes and costs if you are a landlord. Additionally, some retirement contributions are eligible. Your tax preparer should also help with finding additional tax reductions that are available to you and determining if an itemized deduction might be more helpful than the standard one.

Be Prepared

There are many different documents that you should bring to whoever is preparing your taxes so that they can offer the best services possible. You will not only need to bring your I.D. but also documentation supporting all the income you received from a variety of sources. This includes regular income, dividend income, and other kinds of taxable income. Then, you will want to review at least some of what you can deduct from your taxes (or available tax credits) and bring proof of that as well. This can include retirement contributions, business expenses, and property taxes. Be sure to bring all the documentation you need for your taxes and anything else you suspect you might need.

For more information, contact services such as Hough & Co CPA.

About Me

financial bookkeeping tips for contractors

As a renovation contractor, I have a lot of things to worry about each day. I have to think about my customers, my business, the insurance I need and even the employees that I have working for me. All of these things keep me busy enough without having to worry about keeping up with my financial bookkeeping each day. How do you keep up with the financial bookkeeping so that you don't make any errors that could cost you a whole lot of money? I have worked with my accountant to develop a process that has helped me and I have shared the tips he has taught me right here on my blog to help you.

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