CHESAPEAKE--With one week to go before the tax deadline, CPA Kelly Winslow of Chesapeake has tips for last-minute filers.Winslow says to start by having all the necessary documents
You'll need these documents:
- All W2's
- All bank statements
- Dividends and Investments
- Mortgage interest
- Proof of tuition paid
Winslow says to remember the following deductions:
- Real estate tax on all properties you own
- Personal property taxes
- Charitable contributions
- Health Insurance premiums
- Medical bills
- Personal education
If you are self-employed and pay your health insurance premiums out-of-pocket, Windslow says that is deductible. Also, If it adds up to be a percentage of your salary, that's also deductible.
Winslow also points out that if you think you are going to owe on your taxes, you need to send some money with your extension application.
She says don't forget to keep all of your receipts in case of an audit.
Winslow says it's also important to plan for changes you anticipate in the coming year.
"They need to know how social security affects their taxes, because it can be taxable," said Winslow.
When it comes to their kids turning 17 she tells frustrated parents, "You don't get to claim their tax credit anymore. So, you lose that $1,000 in the year that they turn 17. Why 17? I didn't make the rules."
Although Winslow congratulates clients who pay off their mortgages, she warns that, "it also means you don't have that deduction anymore and we have to plan for that."
She also says to be prepared if you're filing a 1099-R for your first year as a retiree. That form will no longer be mailed to you. You now will have to get that form online, which Winslow says could pose a big challenge for a group that may not be as computer savvy.
Click here for more information about filing your tax return.