Get Ready for 2024 Tax Year
I have a number of suggestions for you to get ready: These are some of the things that I have problems with every year.
YOUR CHILDREN GET A JOB.....
Be sure to monitor your kids when they start working. There are many things to consider. Are you going to continue claiming them as dependents? Will they be filing their own tax return? What should they
do for withholding at their job? What about their school tuition if they are in college?
If you plan to deduct them as a dependent you cannot let them claim themselves on their tax return. Many teens want to go ahead and file on Turbo tax when they first get their W2. Be sure they claim "Dependent of another" when they check their filing status. If they don't do this you can't deduct them on your return and there will be amendments involved. Messy.
Call and consult with me before you file or they file a return.
If they are in college I will need the 1098T that you get in the mail which lists tuition information and the name of the college.
REAL ESTATE.....
REFINANCE.... I will need to see the closing disclosure for any items that may be deductible on your return.
Be sure to give me a copy with your paperwork.
PURCHASES....- I also need the closing statement for any deductible items, and to keep track of the date of purchase of that home and the costs.
SALES OF REAL ESTATE....
Again I need a copy of the closing disclosure for sales of your real estate. If I don't have a copy of the statement for the original purchase of the property, be sure to send me one so I can calculate gains, etc. This is when you
will give me the expenses of fixing up during the time you owned the property. You don't need to send me the invoices, a list will suffice.
STATE TAXES...
This item came up several times this past year. It happens when particularly when working remotely. The company withholds the wrong State Tax - could be for your previous state, their state, or who knows. I had several W2's with withholding for states that the person never worked in. Check your paycheck stubs and make sure they are withholding taxes for the correct state. If you move to a new state,
check your paycheck stub and make sure they are withholding the new state's taxes. This creates a big mess at year end. If you move to state that doesn't have withholding, i.e., WA state, be sure they stop taking out taxes. As well as moving to a state that has tax.
OWING TAXES......
If you owed Federal taxes in 2023, you may have to adjust your withholding with your employer. Please do that. If you consistently see they are withholding very little in Fed tax, there could be a problem.....
AFFORDABLE CARE ACT
If you receive a 1095A from the IRS at the end of the year, I will need that to enter the info on your tax return.
Remember that you may owe tax if you made too much money for your level of insurance. There is a repayment necessary of
some of the premiums. If you made less money for the year that what you predicted, you will get additional credit on your tax return.
PINS
I cannot efile (electronically file) your return if you don't give me the PIN number assigned to you by the IRS. They are
giving these to some taxpayers. So make sure you send it to me or give me a copy of the letter you received from the IRS.
STOCK - If you have a brokerage account I will need a copy to pick up any sales or stock, interest/dividends (if there are any)
CRYPTO - Or digital money as the IRS calls it. If you get a statement from a transaction such as this I will need to see it.
I am waiting for more direction on this one.
ID'S/SOCIAL SECURITY NUMBERS
I will need a copy of your state driver's license or your passport, or green card the first time I do your taxes. I will also
need a copy of your SS card for taxpayer(s) and children, as well as dates of birth for everyone. I need to know your immigration status
for tax filing purposes
BUSINESS TAXES/SIDE HUSTLES ETC.
If you did work for DoorDash or Uber, they will send you a tax document. I will need it. Also any 1099's you receive should be given or sent to me. If you have a business. I will need your total gross sales as well as deductions. It's usually more beneficial to take
standard mileage, but if you have auto expenses I figure it both ways to see which one is more beneficial.
STANDARD DEDUCTION
Since the standard deduction is so high for married couples, often you will not have enough deductions to exceed the standard deduction. Keep this in mind when you give me your deductions, i.e. interest and property taxes on your home.
541/279-8605