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6 Ways to Be Prepared for your Denver Tax Specialist

February 29, 2016

It’s tax season! Whether you have a simple return or are self employed, it is important to be ready when it comes to your Denver tax preparation. It can be a stressful time but by gathering the right materials and having the right knowledge, you can have a good experience.
 
  1. Income Forms: There are many different types of forms needed during tax time. When working for a company and/or have other sources of income, gather your W-2 and any other forms such as a 1099 (for income reporting separate from your workplace, such as freelance work), K-1 or stock option (shareholder forms).  If you receive money from other areas, whether it is from pension distributions or social security benefits, gather those forms. Remember, anything over $400 must be reported.
  2. Reductions: Did you know that some of your contributions or interest paid could help boost your refund? For instance you may be paying off your student loans or contribute to an IRA. Or, you may be contributing to a health savings account. Work with a tax specialist in Denver to review your situation and see what you can use to increase your refund.
  3. Deductions and Credits: Similar but different from each other, tax credits can change your tax return. Learn the differences of deductions and credits from the Tax Policy Center. This will help you decide if claiming the standard deduction or itemizing is right for you.
  4. Charity: Giving to causes that matter to you not only helps the cause can be a deduction. When preparing, gather documentation for anything you gave the prior year. Anything done by December 31 can be used for this year.
  5. Retirement Plan: If you are enrolled in a retirement plan such as a 401K, you can reduce your taxes by claiming your contributions. You can contribute up to $18,000 unless you are 50 or older in which you can contribute $24,000. No matter what your contribution is, gather this information for your Denver taxes.
  6. Self-Employment or Small Business Owners: Whether you are currently self-employed or will be soon, you can make quarterly payments for your Social Security, Medicare and income taxes. At the end of year, you will need a Schedule C to turn into the IRS. Then for small business owners, there is much to consider for your business and employees. This checklist will help you prepare everything you need from an employee identification number to employee forms.

When it comes to any of your accounting needs, turn to Bloch, Rothman & Associates to ensure you are covered. Since 1983, we have been one of Denver’s most reputable and trustworthy firms that can work in your budget and will ensure you have a smooth process this tax season. Whether you are looking to get the most out of your return or know you will owe on local or federal taxes, they can help with it all. Contact us at 303-321-7160 or fill out this form to set up a free consultation.