Preparing for Tax Season with LMC
January 17, 2024
As we begin 2024 and the impending tax season, we are committed to helping clients organize and gather their tax documents and information. Many of you have received an email describing a new program called TaxCaddy that we have implemented. It is an innovative tool to help us gather tax information.
You should have received an invite to create a TaxCaddy account that will upload your tax documents through our website or a mobile app. The program includes smart links whereby you can enter your online account information for your bank or brokerage house and TaxCaddy will pull the 1099 info and upload for you. You are also able to take pictures of certain documents, like your W-2 or 1099-INT, and it will convert the picture into a pdf that will be organized in your binder. You will also be provided with an open item list of all the documents that were used in your prior year return, to see what has been provided to us and what is remaining.
Want to make sure your tax paperwork is organized?
Keep excellent records all year. That way, after the end of the year, it is easier to gather applicable tax documents that arrive in the mail or become available online. When you feel you have received all your tax information, let us know that your return is ready to be completed.
Income documents and information should include:
- Forms W-2, 1099 and any others showing income earned.
- Investment income including interest and dividends.
- Income from state and local income tax refunds and/or unemployment forms.
- Taxable alimony received.
- Social Security benefits.
- Miscellaneous income — such as jury duty payments, gambling winnings and scholarships.
The following documentation will help you get the deductions and credits you deserve:
- Childcare costs
- Education costs, included student loan interest payments
- Adoption costs
- Mortgage interest
- Moving expenses
- Property taxes
- Educator expenses
- Investment interest expenses
- Charitable donations
- Casualty and theft losses
- Union dues and other unreimbursed employee expenses
- Alimony paid that is tax deductible.
- Medical and dental expenses
- Energy credits
Other items to consider which will help to reduce your taxes include:
- IRA and HSA contributions.
- Self-employed health insurance premium payments.
- Self-employed pension plans — e.g., Keogh, SEP and SIMPLE.
Business records
For business expenses, keep receipts and credit card statements. In addition, create a spreadsheet where you list all your annual business expenses. Keeping detailed records throughout the year can help you maximize your business deductions and potentially reduce your tax liability.
There is plenty of time until the impending tax deadlines. Please reach out to your LMC tax professional with any questions about your taxes, including the use of TaxCaddy.