Q&A: How do I prepare for my taxes?
Ready to do your taxes? Want to know how to make your tax preparer LOVE you?
Hi, Angie. Now that I’ve got a great tax accountant. what happens next? How do I prepare for my taxes? – Jordan A.
Jordan, before you meet with your tax accountant, you’ll want to make sure your financials and receipts are in order. There is no reason you should be paying your accountant (at $120 an hour or more!) to do your bookkeeping when you can do that part yourself.
Hopefully, you’ve kept up with your bookkeeping & record keeping throughout the year. Here’s a list of things that your tax person will want to see:
- Your tax return from 2009
- Info about the quarterly estimated tax payments you made for 2010
- Your business Balance Sheet from December 31, 2009 and December 31, 2010
- Your business Income Statement from January 1-December 31, 2010
- Your mileage log and the square footage calculations of your house (in total) &
any space used 100% for your business
- A listing of assets & investments sold or purchased during the year
- Any paperwork you’ve received from an employer, from doing contract work, or anything that looks vaguely tax-related and official (like 1099s or letters from the IRS)
- Information on other purchases or activities, depending on your personal situation & your dependents. These could be the purchase papers from your house or new car, or a listing of adoption expenses, or anything else that might get you a deduction. Your tax accountant will let you know exactly what they need to see.
And of course, your tax preparer is human, too. They appreciate a nice box of chocolates & flowers, just like everyone else. I know I sure do!
If you have a money or business question for me, send an email to questions[at]freshmoneystudio[dot]com and I’ll try to answer it during the weekly Q&A.
Do you feel you’re prepared for your taxes this year?Source: www.freshmoneystudio.com