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16 May 2023

What Your Tax Professionals Need to Know to Complete Your Return

Shed Light on Your Return 

It is estimated that 80 percent of people missed a tax-related step therefore, not knowing what information your tax professional needs to file your taxes correctly is a significant source of stress and confusion. Without a clear understanding of what documents and information are required, you may struggle to provide your tax professional with the necessary information, resulting in a delay in filing your return or even an incorrect filing. This leads to further complications, such as an audit or a delay in receiving any refunds you may be owed. Additionally, not knowing what information your tax professional needs can result in missed opportunities for tax benefits, such as deductions or credits you may be eligible for. That means paying more taxes than necessary, a significant financial burden. Working closely with your tax professional and understanding their required information is essential to ensure a smooth and accurate filing process. 

The Most Important Information  

Providing your tax professional with accurate and complete information in these three areas will help ensure your return is filed correctly, and you receive any tax benefits you are entitled to. 

  1. Personal Information: Your tax professional will need your personal information, including your full name, Social Security number (or other tax identification number), date of birth, and address. This information is essential for correctly identifying you and ensuring your return is filed with the appropriate tax authorities. 
  2. Income documents: Your tax professional will need documents showing all the sources of income you received during the tax year, such as W-2 forms from your employer(s), 1099 forms for freelance work, interest and dividend statements from banks and financial institutions, and rental income statements. These documents will help your tax professional accurately report your income and determine your tax liability. 
  3. Deduction and credit documentation: Your tax professional will need the relevant documentation if you plan to claim deductions or credits on your tax return. For example, suppose you plan to claim a deduction for charitable contributions. In this case, your tax professional will require receipts or other documentation that show the amount you donated and the name of the charity. If you plan to claim the earned income tax credit (EITC), your tax professional will need documentation showing your income and the number of qualifying children you have. 

Get Help with the Right Information  

Better Accounting provides the tools and guidance to keep accurate yearly income and expenses records. The company helps you set up an accounting system, such as software or a spreadsheet, to keep track of all your transactions and ensure you have all the necessary documentation to support your deductions and credits.  

Additionally, Better Accounting helps you stay informed about tax law and regulation changes and provides guidance on what personal information and documentation you will need to file your taxes. The company’s experienced professionals help you prepare for tax season by ensuring all the necessary documents and information are organized and ready to file. Overall, Better Accounting allows you to stay organized, keep accurate records, and provide the guidance and support you need to ensure you have all the necessary personal information, income documents, and deduction and credit documentation ready for tax season.

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