Take a look at the documents you need if you are about to do your taxes

Take a look at the documents you need if you are about to do your taxes

Are you planning to do your taxes? In this article, you will discover the documents you need. Keep reading to save some time the next time you do your taxes!

Are you planning to do your taxes? In this article, you will discover the documents you need. Keep reading to save some time the next time you do your taxes!

Taxpayers spend 12 hours on average preparing their tax returns, according to IRS estimates. Yet, you can save time, cut back on stress and have an overall easier experience by gathering the documents you’ll need before it’s time to dive in.

Taxpayers spend 12 hours on average preparing their tax returns

If you made money this year—either by working, saving or investing—you should receive one or more of the following forms from any person or place that paid you.

Form W-2
Your employer will provide this document. It lists your total income, taxes withheld and other important information.

Form 1099-NEC
If you did any freelance or consulting work, you should receive this from any client who paid you at least $600 for the year.

Form 1099-INT
You’ll generally get this from financial institutions where you earned $10 or more in interest on savings or investments.

What is more, some interest, such as mortgage interest, may be deductible. You are likely to receive a Form 1098 documenting these payments.

What is more, some interest, such as mortgage interest, may be deductible.

It is important, to keep all receipts. For motor vehicles, boats or airplanes valued over $500, the charity should send you Form 1098-C.

If qualified out-of-pocket expenses exceed a certain percentage of your adjusted gross income, you may be able to deduct them.

What is more, you could get a tax credit if you paid someone to care for your child or certain other dependents so you could work or look for work.

Finally, you may qualify for tax credits if you, your spouse or a dependent studied at an eligible institution. You don’t need to itemize to claim these benefits. Use Form 8863.

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