We are approaching the dreaded date for both individual filers or businesses and that is TAX DAY! The best part though is we are the perfect partner to ensure nothing falls through the cracks and give you the peace-of-mind knowing the experts are filing your taxes for you. Monday, April 18 2022 is the last day to file your taxes without an extension. If you have not marked it on your calendar yet, here's your chance. It is now time to go through your invoices, receipts and expenses, gathering the required material to ensure you have all the required documents ready. Consider this your definitive checklist before you give us a call to get everything started.
Individual & Business Tax Filers In Colorado:
- Gather together the previous year's tax documents, unless you filed with us, in which case we already have everything saved for you.
- You will need the social security numbers for yourself and your dependents.
- W-2 forms are important and your employer should have mailed them to you by now. If you have not received a mail copy or digital version, inquire asap.
- 1099 forms. There are a million different versions of these each with their own suffix. Contact us if you need help clarifying which version applies to you.
- Retirement accounts. Have you been contributing to your IRA?
- Educational expenses. Anyone who is considered a student who pays tuition or student loans needs to keep note of that with either a 1098-T, which shows your transactions or a 1098-E which contains details on your loan.
- Medical bills. What you paid in medical bills may also be important for your taxes. Just make sure these are out of pocket expenses and not covered by medical insurance.
- Property taxes/ mortgage interest. This one is a bit trickier. Keep an eye out for a Form 1098 your lender sends you. That document will also show how much home loan interest you can claim on Schedule A.
- Classroom expenses. Teachers and educators are allowed to write off up to $250 of expenses for supplies.
- State and local taxes. Other taxes can be deducted from your federal taxes, therefore it is always prudent to keep all of this handy for when your file with the IRS.
- Business expenses. For business tax filing purposes, keep a file of everything your business spent that is considered an expense.
- Profit Loss Sheet. Furthermore, once you have your expenses together, it is helpful to compile a monthly profit loss sheet showing money in and out of the business.
- Miles traveled for business purposes. These can be written off if driving is critical to conducting your business.
- Records for business assets to be depreciated, including cost and date placed in service.
- 1099-NEC or 1099-K showing income earned. This is only applicable if you are an independent contractor.
Hopefully this served as a good summation of a few key items that will be asked for when you file your taxes this year in Colorado. You have a little over a month to start thinking about tax season and begin preparing to file. We are your local tax experts in Fort Collins and we are more than happy to schedule a call with you to get the ball rolling on tax preparation! Call us today an speak with one of our many tax experts.