It may be happening to you, right now- – tax-terror brain fog.  You know you should be getting your documents together for your tax preparer, but…every time you try to start…

everything starts to go in slow motion, the list of things to do is endless, there’s no hope, you’ll never be ready, better just quit right now…

Don’t give in to that voice in your head!  You can do this – just start at the beginning. Let’s take a look at the basics that you need. (And if you don’t have your supplies together yet, take a quick look at the previous blog “Tax Preparation Tips”)

• The Form.  That’s right, Form 1040, available on-line from the IRS, or at your local library.  Online, follow this link and print it out: www.irs.gov/pub/irs-pdf/f1040.pdf .
• Next, look at the mail that you collected in your Tax Forms Box – don’t panic, you don’t need it all right now!  Just look for the one that says W2, or, if you are self-employed or have part time wages, there will be one that says 1099.
• If you own your home, keep hunting through the mail to find another thing you’ll need – the Annual Mortgage Statement.  This is sent to you from the institution that holds your mortgage.  This Interest Paid number is going to be a very good friend of yours – keep it handy.
• The last big thing you need is your Tax Return from Last Year.  That’s the tax return for income and deductions in 2010, the one you filed in 2011.  Agreed, it can get a little confusing. You’ll use this as a handy reference while you work on the 2011 taxes. (And if you didn’t file last year, you need to follow this link for Litchfield County CT tax lawyer: http://www.millertaxlaw.com/past-due-income-tax-returns/)

• Lastly, take 3 of the file folders (or the hanging folders, if you’re into that) and label them: “Checklist and Forms” (for the Form 1040 and all others you will fill out), “Documentation” (for W2, 1099s, Mortgage Interest Statement, and more ), and “Reference” (last year’s tax return, emails from your tax preparer, articles, this blogpost., etc).

• Oh, and about that kitchen timer?  That’s for when you read through this list, think ‘forget it!’ and start to walk away.  Here’s the way to get over that hump…take the timer, set it for 15 minutes, and go.  Do something tax related, anything, for 15 minutes.  There, you’ve begun!

Stay tuned for the next blogpost where we give you the Tax Preparation Checklist, and assemble more of the information that you’ll need

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Tax Preparation Tips

­It’s Tax Time – you see it everywhere; ads for do-it-yourself tax programs, strange documents coming every day in the mail, papers piling up…it’s enough to make you want to bury your head in the sand, right?  Well…don’t.

Do yourself a Big Favor.  Think of it this way:

• The need to complete your tax return for last year will never go away. Ever. Get it over with.
• When it’s finished, you can live guilt-free and fear-free for the rest of the year.
• You’ll get your refund sooner. $
• If you start early and give yourself time, you’ll find more deductions. $$
• If you get it to your tax preparer early, you won’t have costly changes. $$$
• You can sleep at night knowing you won’t have to pay penalties and interest this year. $$$$
• Less dread of an Audit. $$$$$

OK, so you know all that already.  So what’s stopping you now?  Don’t know where to start, or how?

Here’s a list to get you going and organized (and during the rest of this week we’ll give you more tools):

• DO NOW: Find a container (plastic box, big envelope, fancy wire basket, whatever) and put those ominous pieces of mail in it.  You know, the ones that clearly have marked on them “IMPORTANT TAX DOCUMENTS ENCLOSED”.  PS – Some of them look just like regular mail, so be sure to check each piece of mail carefully before you recycle or shred it.  This is ‘The Place’ to put that mail – do not be tempted to put it anywhere else, even briefly.  Knowing where these crucial documents are will save you lots of time, and increase accuracy on your tax return.
• NEXT STEP. Find a box big enough to hold: paper, file folders, pencils, a calculator, paper clips, envelopes, letter opener, stapler, highlighters, and maybe  a 3-ring or spiral bound notebook.  This is your Go-To spot for supplies.  Do not let the contents migrate to other parts of the house!  Those items need to stay right there for a couple of weeks.  To hold everything, a Banker’s Box works well, or something of a similar size.
• OPTIONAL: if buying something new perks you up, go ahead and pick up a couple of things.  These are useful: a small plastic tote that holds hanging files, hanging files, basic file folders, a kitchen timer (more about that soon), and anything from the previous list that you don’t already have.

That’s not so hard, is it?  Do it.  Do it now.  Then you can give yourself a big pat on the back, and check in here to see the next steps…

PS – not filing your returns is a really bad idea – for more info on that contact Litchfield County tax attorney at:  http://www.millertaxlaw.com/past-due-income-tax-returns/