Money Fix: Get organized for tax season
This year, you have until April 17 to file your tax returns. Credit: iStock
The calendar moved from the most wonderful time of the year to the least favorite -- tax season. Along with the prospect of first snow will come the forms: W-2, 1099, K-1, 1098, and new this year, Form 8949 to report capital gains and losses and Form 8938 for foreign assets.
Before you groan, the good news is you have until April 17 to file. But get ready now. You should receive most documents by early February at the latest.
As documents arrive, set up a system. Organize records by categories, such as IRA contributions, student loan interest, mortgage interest, real estate taxes and charitable contributions, explains Marty Kuper, a financial adviser with Investors Capital in Merrick. Gather documents that support income or deductions.
"Compare current information to last year's. What's missing? Are numbers too large or small in comparison? Differences could mean there is a reporting mistake," says Ellen Zombek, a certified public accountant in Stony Brook.
If you plan to open an IRA account for 2011 credit, do so now instead of waiting until April. This way earned income will be tax-deferred, advises Ronald Finkelstein, a CPA with Marcum in Melville.
Check out the IRS' Interactive Tax Assistance and other tax help at irs.gov. You can find useful information on accounting firm websites like East Northport's Sasserath & Zoraian, (sz-cpas.com), with its comprehensive Tax Center.
Only accountants love taxes, but the sooner you settle your business with Uncle Sam, the better.
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