How To Organize Your Documents For 2010 Tax Filing

This is a guest post from TaxDebtHelp.com.

Two things that are certain in life are death and taxes. If you are alive in 2010 or if you die in 2010, Uncle Sam expects you to file your taxes. Organizing all those tax documents is smart, since they are very important documents. Also, most tax preparers charge you more for their time if your documents are not organized effectively. In this article we will discuss how to organize your documents for 2010 tax filing:

Organizing Tax Documents

A smart way to organize your documents is to place them in a folder and label it 2010 Tax Documents. The majority of the documents you will need to file your taxes can be found on the first page of IRS form 1040. Here are ten steps on how we suggest you organize your documents;

Step 1: if you have any dependents; make sure you have the correct spelling of their name along with their social security numbers.

Step 2: behind that page add form’s W-2, 1099 Misc and any other document that show your wages or salaries.

Step 3: if you receive any documents from your bank or financial institution regarding interest or dividends earned, add that documents behind the W-2.

Step 4: add any taxable refund or credits from state and local income taxes.

Step 5: if you received alimony, add that document next.

Step 6: if you have a business; add in the income and expenses for the business. To save your accountant or tax preparer time, consider, printing IRS form Schedule C and inputting the income and expenses for your business.

Step 7: if you have rental property, do the same as step 6, except, this time use IRS form Schedule E.

Step 8: if you gained or lost money trading stocks or other securities, add that form in, and you may even consider completing a Schedule D to save your accountant or tax preparer time.

Step 9: add in documents that show additional income you may have earned in 2010. For example, this could be distribution from, annuities; IRA’s or pensions, farm income, royalties, partnerships, unemployment compensation in excess of $2,400, social security benefits and any other income you could think of.

Step 10: add in all the documents that may allow you to have tax breaks for qualified expenses. Here is sample of a those items, educator expenses, health savings account expenses, moving expenses, self-employment taxes, money contributed to 401k, IRA, SEP, KEOGH plans and other retirement accounts, penalty on early withdrawal of savings, alimony paid, student loan interest, tuition and fees, real estate taxes, vehicle taxes, mileage and vehicle expenses for business use.

Organizing your taxes will help you and your accountant or tax preparer files your taxes more efficiently. There are many ways to organize your 2010 taxes for filing, but our recommendation gives you a simple technique to follow. Always check with your accountant for or tax preparer for a more complete list for your personal situation.

Will you start preparing for the 2010 tax season now, or wait until you’ve reached panic mode to get everything in before the tax deadline?!

This article is provided for Taxdebthelp.com, a site designed to help with tax debt. If you are in need of IRS debt help, this site can help you figure out what your options are.