6 Pay your taxes, too, for these same reasons. For government workers need to be paid. They are serving God in what they do. 7 Give to everyone what you owe them: Pay your taxes and government fees to those who collect them, and give respect and honor to those who are in authority.
Romans 13:6-7 (NLT)
Tis the season for all working Americans to begin filing their taxes. By this time, you are receiving via mail, year-end statements from banks, investments, mortgage companies and income/wage statements – W2s and/or 1099s. Whether you are expecting a refund or end up owing Uncle Sam, the most stressful part is gathering all the documentation to bring with you to your tax preparer.
Personally, I itemize so I can take advantage of the deductions and credits available. The government offers several deductions and credits to help lower the tax burden. Depending on whether you are single or married, have children, or caring of your aging parents, etc. the best advice I can offer is speak to a well-informed tax professional who will support you through the preparation process.
I am no financial expert, but I have been paying taxes since I was 16 years old. In fact, the only time age might excuse you from filing a tax return is when you’re 65 or older and your income is below certain very low thresholds. Children can be six months, six years or 16 and still must pay taxes. It depends on whether their earned, unearned or combination income exceeds certain limits. So, I am accustomed to looking out for my year-end statements coming in the mail or tapping into websites to retrieve the documentation I need.
Some dates to keep in mind:
The IRS started accepting 2021 tax returns on January 24, 2022. However, federal law requires employers to send W-2s to their employees by January 31 each year or a few days later if the end of the month falls on a weekend.
After a hectic 2020 filing season, the 2021 season appears to be returning to the norm. The deadline to file 2021 federal taxes is Monday, April 18. The IRS announced recently, April 15 is Emancipation Day, is a holiday in Washington, D.C.
Most taxpayers who file electronically and chose direct deposit can expect their refund within 21 days, assuming there are no problems with the return.
Documents You May Need:
Again, I am no tax professional so what you provide to your accountant or tax preparer is personal and exclusive to you and your filing status. However, I want to offer a quick checklist of items to consider making the preparation process simple. I am certain there are more but these are the more popular ones. Again, check with your financial planner or tax expert.
- Organization is key! By now you should have received your wage statement and proof of medical insurance from your employer.
- Receipts of charitable donations to church, non-profits, or Goodwill
- Bank statements to help verify income, costs, and contributions
- Expense receipts
- Homeownership forms i.e., 1098 and mortgage interest statements
- Childcare or educational costs
- Adoption-related costs
- Investment interest
- Medical and dental expenses
- Casualty/theft loses
Additional records/amounts of other miscellaneous tax deductions:
- Union dues
- Unreimbursed employee expenses i.e., uniforms, supplies, seminars, continuing education, publications, travel, etc.
- Records of home business expenses including home size, office size, home expenses
- Rental property – income and expenses – profit and loss statements.
Usually, you will receive via the mail, statements of taxes you’ve paid and those costs may be factored into your tax preparation.
- State and local income taxes
- Real estate taxes
- Personal property taxes
- Vehicle license fees
As a precaution, whether you are returning to your usual tax preparer or going to someone new, be sure to bring your prior year’s tax returns, social security card, and proof of identification.
Depressing, but true: taxes are on everyone’s mind almost 24-7 since they influence our daily lives. I pray a smooth tax preparation for all of you and meanwhile enjoy a few laughs. Happy Taxing!
“The difference between death and taxes is death doesn’t get worse every time Congress meets.”–Will Rogers
“The tax code is a monstrosity and there’s only one thing to do with it. Scrap it, kill it, drive a stake through its heart, bury it and hope it never rises again to terrorize the American people.”–Steve Forbes
“You don’t pay taxes–they take taxes.”–Chris Rock
“The hardest thing in the world to understand is the income tax.”–Albert Einstein
…now what, Linda
now what, Linda? 