It’s that time again! Time for tax preparation. Don’t procrastinate. I’m talking to myself too. We don’t know if there will be an extension like it was in 2020, so start now.
Here’s what you can do to start preparing. Start searching for your receipts now. Once you find them place them in a folder. If you are tech-savvy, scan the documents or place your emailed receipts into a folder or app on your phone or computer.
Tax Preparation Documents Commonly Submitted
- W-2
- Rental Property Income & Repairs
- Charitable Donations (monetary/non-monetary)
- Church Tithes & Donations
- Medical Bills
- Pharmacy Receipts
- Property Tax Invoice (home, vehicle, land, etc.)
- Form 1098 Mortgage Interest Statement
- Form 1098-E Student Loan Interest Statement
- Car Repairs
- Gas Receipts
- SC 529- College Savings Plan
- Previous Tax Preparer Fee
- State Tax Refund
- Childcare Expenses
Helpful Hints
- You are definitely capable of completing your taxes yourself! If I did, so can you. I wrote about it here.
- Determine which type of tax professional you want to prepare your taxes. There are tax preparers, EAs, and CPAs. Click here to learn the differences. I’ve used them all before.
- Do NOT pay someone $500 to file your taxes. H&R Block and Jackson Hewitt are rip offs! That’s what they charged me in the past. We used a CPA (Certified Public Accountant) last year and didn’t pay that much.
- Contact United Way for free tax prep assistance.
- In South Carolina, if your adjusted gross income less than $65,000 per year ($95,000 if married filing jointly) you can qualify for free tax preparation through SC Thrive program.
- IRS Free File program lets you file federal income taxes for free if your income is less than $72,000. Learn more here.
- Check your student loan website for your tax documents. In my experience, I stopped getting them via mail.
- Contact your church at the beginning of the year to request a print out of your tithes/donations.
- CVS Pharmacy website has access to the amount you spent on medicines for tax purposes. It can be found under the “view financial summary” tab.