The Importance of Proper Documentation to File Your Taxes

Today’s tax tip from the IRS is so relevant, we want to share.  Providing the right documentation on the front end is so important to facilitating a complete, accurate, and timely tax return.  If you ever have questions, let the Crosslin tax team know.  We are here for you during this very busy season. 

Needed documentation: 

  • Social Security numbers of everyone listed on the tax return.  
  • Bank account and routing numbers. People will need these for direct deposit refunds. Direct deposit is the fastest way for taxpayers to get their money and avoids a check getting lost, stolen or returned to IRS as undeliverable.
  • Forms W-2 from employers.
  • Forms 1099 from banks and other payers.
  • Any documents that show income, including income from virtual currency transactions. Taxpayers should keep records showing receipts, sales, exchanges or deposits of virtual currency and the fair market value of the virtual currency.
  • Forms 1095-A, Health Insurance Marketplace Statement. Taxpayers will need this form to reconcile advance payments or claim the premium tax credit.
  • The taxpayer’s adjusted gross income from their last year’s tax return.

Forms usually start arriving by mail or are available online from employers and financial institutions in January. Taxpayers should review them carefully. If any information shown on the forms is inaccurate, the taxpayer should contact the payer ASAP for a correction.

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