Income tax season is here again. Now is the time to gather and organize all the paperwork you need to complete your income tax return. Do you know what documents and paperwork you need to file your income tax?

To complete your income tax return, you will need a W-2 form. In addition, be prepared to provide personal, employment, income, financial, housing and other tax related documentation.

Below is a taxpayer checklist identifying the tax information you may need to help you complete your income tax return:

PERSONAL INFO

• Social Security numbers
  You will need the SS# of your spouse and dependents to qualify for tax exemptions
• Child-care provider tax ID
  To qualify for child care credits
• Copies of your divorce decree
  To claim a child living with your ex-spouse

EMPLOYMENT AND INCOME DATA

• W-2 forms
• Partnership and trust income
• Pensions and annuities
• Alimony received
• Jury duty pay
• Lottery and gambling winnings and losses
• Prizes and awards
• Scholarships
• State and local tax refunds

HOUSING DATA

• Your residential address
• Mortgage interest
• 2nd second interest paid
• Home sale or other real estate transaction
• Real estate taxes paid
• Rent paid
• 1st time homebuyer credit

FINANCIAL INFO

• Interest income
• Dividend income
• Broker transactions
• Tax refunds and unemployment compensation
• Retirement plan distribution

LIABILITIES

• Auto loans
• Student load interest paid
• CD early withdrawals

DEDUCTIBLES

• Charitable distributions
• Travel and entertainment expenses
• Job-hunting expenses
• Child-care expenses
• Medical savings account
• Alimony paid
• Tax return preparation fees
• IRA, Keogh and retirement plan contributions
• Medical expenses

For more income tax help visit the IRS website.

source: msn.com

Tax Day, April 15, is quickly approaching. It is when federal income tax returns are due and the last day U.S. citizens and resident aliens can mail their returns without incurring penalties. Even with the tax deadline just days away, individuals having difficulty preparing their income tax return can still get free tax help.

The IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) Programs offers free tax help for taxpayers. The programs can help taxpayers by answering tax questions, offering tax advice, discussing tax problems and providing free tax return preparation assistance. Most VITA sites also offer free electronic filing (e-filing)

To take advantage of the VITA program, individuals must earn less than $49,000 and cannot prepare their own tax returns.

The Tax Counseling for the Elderly Program provides free tax help to people 60 and older. TCE is run by trained volunteers who provide free income tax counseling, answer income tax questions and help the elderly with tax problems.

Individuals in the military can also take advantage of the Volunteer Income Tax Assistance (VITA) Program through the Armed Forces Tax Council (AFTC). The AFTC consists of the tax program coordinators in all branches of the military, including the Coast Guard.

Members of the military and their families can get help with free tax preparation, having their military specific tax questions answered and consultation on any tax problem they may have.

When visiting the VITA/TCE sites don’t forget to bring the following:

• Proof of identification (Social Security Cards for you, your spouse and dependents)
• Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers
• Interest and dividend statements from banks (Forms 1099)
• Bank routing numbers and account numbers for Direct Deposit
• Total paid for daycare provider and the daycare provider’s tax identifying number
• A copy of last year’s federal and state returns if available (if available)
• To file taxes electronically on a married-filing-joint tax return, both spouses must be present to sign the required form

For more information on TCE, call 1-800-829-1040 or log onto www.irs.gov

In this economic climate it makes sense to take advantage of the free tax help provided by the IRS.

source: irs.gov