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Things You Must Add During Tax Checklist Management
Are you aware that failure in filing your taxes on time has a penalty of 5% unpaid tax monthly? Filing your taxes 60 days late means you will also have to pay at least $135 or the full amount of taxes you are indebted to the government, whichever is the lowest.

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IRS reports state that more than 5% of Americans have failed to file taxes in the year 2018 alone and have amassed about $130 Billion Dollars in back taxes, interests and penalties.

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Not having the proper tax checklist can make filing taxes a stressful endeavour, but with careful preparation it can be done with ease. Here below are some tax checklist tips for you to consider.

Clarify Your Personal Info

The IRS needs you to fill in your correct personal information, birth date, and social insurance. It is a must that you include detailed and accurate information regarding individuals that are covered under your tax returns. Individuals such as your partner, your children, and other dependants.

Do Not Forget to Include your Income Information

You need to write down all of your sources of income in order for you to manage your taxes. These can include income from investments, employment, and businesses. Listed below are a list of income forms needed when filing your taxes.

W-2 forms for the employment income information of you and your spouse.
Received income from alimony.
Social security Benefits will require Forms SSA-1099
Forms 8606 and 1099-R.
Different 1099 forms for income from investments.

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Be sure to have the right IRS form of your income sources. You should also report other sources of income such as jury duty, medical savings account, scholarships, and gambling winnings. You can make use of online pay stub generators to create pay stubs for documentation.

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Your Tax Checklist Should Also Include Income Deductions

Your taxable income amount can easily be reduced by income deductions. This can reduce the amount of money you owe.
Be Mindful of Tax Credits

Tax credits are directly deducted from your taxes. These will need documents in order for you to claim them, however. Here below are a list of common tax credits.

Retirement savings contributions or saver’s credit.
Child tax credit if you have children below 17 years of age.
Education credits for example tuition fees and the likes

Keeping an eye on your credits can greatly help in getting you a refund of your withholding tax. Credits can either be non-refundable or refundable. Having refundable credit that is more than your taxes will allow you to receive the difference as refund.

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