As we approach the 2018 tax season, there will be many changes for you and your clients.
1.) Electronic Filing- The IRS actually process electronic returns faster and works the best if you’re expecting a tax refund.
2.) There are other advantages to e-filing besides a faster refund. The IRS checks your return to make sure that it is complete, which increases your chances of filing an accurate return. Less than one percent of electronic returns have errors, compared with 20 percent of paper returns. The IRS also acknowledges that it received your return, a courtesy you don’t get even if you send your paper return by certified mail. That helps you protect yourself from the interest and penalties that accrue if your paper return gets lost.
3.) One of the common hassles is getting all of the documentation and paperwork together. So, how do you get started in organizing and gathering all needed documentation? Print out a tax checklist to help you gather all the tax documents you’ll need to complete your tax return.
Keep all the information that comes in the mail in January, such as W-2s, 1099s, and mortgage interest statements. Be careful not to throw out any tax-related documents, even if they don’t look very important.
Collect receipts and information that you have piled up during the year.
Group similar documents together, putting them in different file folders if there are enough papers.
Make sure you know the price you paid for any stocks or funds you have sold. If you don’t, call your broker before you start to prepare your tax return. Know the details on income from rental properties. Don’t assume that your tax-free municipal bonds are completely free of taxes. Having this type of information at your fingertips will save you another trip through your files.