Way back before I hit "joint return" status, my taxes were sweet, simple and succinct. Much like early stage crow's feet and gray hair, my family's tax return is growing exponentially more complex with age, investments and dependents. Fortunately for those of you in the same proverbial boat, there are some easy steps to take to make sure you squeeze every last cent out of your yearly deduction potential.
If you're not sure where to start, refer to last year's return and make a list of the necessary documents and other information you needed last year and will likely need again to file the upcoming return and accurately claim your deductions. Although a lot of info will be available to you automatically, you may no longer receive the needed statements in the mail. In this Internet age, you may have to retrieve your bank statements and W-2s online yourself.
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Whatever you do, don't jump the gun and file until 100 percent of your documentation is present and accounted for. If you get ahead of yourself, filing an amendment will be necessary and annoying. Also, remember to take inventory at the end of every year of the major and minor life occurrences that rocked your world, like marriage, divorce, parenthood, major medical issues, higher education expenses, moves and home ownership. Each of these things (and more!) can significantly impact the amount of deductions you claim, and therefore the moolah you enjoy come refund time.
Although some deductions are obvious, many others are often overlooked. Take a look at this handy checklist of documents you might need to gather as you prepare for tax time:
Income
___ W-2s, 1099s, 1098s and other income statements
___ Savings and investment statements
___ Unemployment benefit statement
___ Alimony received
___ Rental property income
___ Social Security and/or pension payments
Real Estate
___ Mortgage interest statement
___ Second mortgage interest statement
___ Real estate taxes paid
Medical and Dental
___ Health insurance premiums
___ Documentation of out-of-pocket medical expenses (don't forget things like eyeglasses, braces, ankle braces)
___ Medical mileage (travel to and from the doctor or hospital)
Education
___ Student loan interest paid
___ College tuition and fees paid
Work-related Expenses
___ Out-of-pocket expenses not reimbursed by your employer (mileage, cell service, equipment, union dues, job education, uniforms)
___ Home office expenses (mortgage, Internet, phone, equipment)
___ Job-hunting expenses
Charitable Contributions
___ Volunteer mileage
___ Charitable donations and other contributions (non-cashed charitable contributions are still deductible)
___ Other costs of volunteering far away (meals, housing, parking)
Other Expenses
___ State income tax paid (found on your W2)
___ Sales tax paid (for states that don't have a state income tax)
___ Portfolio management/investment services
___ Tax return preparation services
___ Casualty and theft losses
___ Energy-efficient home improvements
___ Job-related moving expenses
___ Alimony paid
___ Certain gambling losses
___ Child care expenses
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