Being an abiding citizen of the country means that are you are following the laws and regulations and that you are doing your responsibility as a citizen. Among your responsibilities is to pay your tax on a yearly basis. The extent to which you comply with the tax law of the country is known as tax compliance. Now, if it is your first time to pay your tax, you should know the different requirements and the documents that you should bring with you.
This is a very common requirement. In fact, regardless of the office that you will visit, you will be required to show a proof of your identification. There are different IDs that you can present such as your company ID, your TIN ID or any government ID.
Documents Showing Your Income:
There are several documents that you should bring to your tax accountant and some are as follows:
W-2 – this is the most important form most especially when you are working for a certain company. You have to secure this form from your past employer/s. This will show the amount of money you are making, the amount of income tax which was withheld, the amount of Medicare and Social Security taxes which were paid and benefit contributions such as child care reimbursement plans, medical accounts and retirement plans.
1099-MISC – this form is for self-employed individuals
1099-INT – if you have a bank account and you are earning more than $10 on its interest, then you are required to get this form. Even if you are not withdrawing the interest, still, it is considered by the tax law as an income.
1099-DIV – this form shows the earnings you got from mutual funds and individual stocks. The capital gains and dividends distributed over $10 will be shown here.
1099-B – this is needed when you have sold bonds, stocks or mutual funds. This form will be provided by your mutual fund company or broker. This will show how many shares were sold, the date they were sold and then the amount you received from them.
K-1 – this form shows the income you are getting from a small business, partnership or trust
1099-SSA – this shows the amount of Social Security you have received
If you have other sources of income that were not reported on your 1099 or W-2 form, make sure to bring written documents for them as well. You can bring a bank statement, a spreadsheet or any written evidence.
It is also important that you bring receipts, canceled checks or spreadsheets showing tax-related expenses. These can include college expenses, moving expenses, dental and medical expenses, childcare costs, real estate taxes and many others. If you have paid estimated taxes, make sure to bring a summary of your state and federal estimated payments along with canceled checks.
Meeting with your tax accountant is a good decision when you need help regarding your tax. To make most of the meeting, make sure that you will bring all the needed documents. This way, your tax return will be prepared without hassle, hence, saving you time and money.
If you are in California, particularly in San Diego and you are looking for a tax accountant, look no further than Alan M. Brown, a CPA who has been in business for more than 20 years already. Give us a call and you will be glad you did.