Preparing for Taxes

By Jeanette Bednar, Jarvis Management, LLC

It is tax season (again). Here are a few steps to help you get organized and get your tax

filings completed (for you or a loved one).

1. Gather all your tax information in one place.

a. On the income side, this includes Forms W-2 for employees and Forms 1099 for

all of your financial institutions.

b. On the deduction side, this includes records for property taxes, other state and

local taxes paid, interest paid on a home mortgage and/or home equity line of

credit, charitable contributions, tuition payments and other deductible expenses.

2. February 1 is the deadline for institutions to send Forms 1099, so you should have all the

information by the middle of February. Social Security sends a Form SSA-1099 for

Social Security income.

3. Contact your CPA or other tax return preparer. Get him or her all relevant information

and spend the hour it takes to complete his or her questionnaire.

4. You can automatically extend the time to file your income tax return for six months,

although you cannot extend the time to pay any tax due. This is done by filing a Form

4868 with the IRS. Complete any needed state income tax extension forms, too.

5. Reserve funds to pay federal and state taxes if you will owe (which is unlikely for most

people because the US and state income tax systems are generally “pay as you go”). You

could have this situation if you sold a house or securities during the prior tax year or if

your withholding was too low.

6. Budget and plan for any estimated income tax payments in the current year.