Many people are overwhelmed when it comes time to file their taxes each year because there is so much information that is needed to be provided depending on an individual’s economic situation. Some people need to file only a w-2 if they do not have much to claim for tax reductions, while some people need many documents when preparing for tax preparation, Hudson residents should be made aware that no matter what kind of information they are filing for their taxes each year, there are some pieces of information that are required regardless of the forms that need to be submitted.

Different Forms for Monitoring Income

Not everyone needs to file a W-2 form when they are preparing their taxes, but individuals need to have some form that is able to document the income that they received for the year. There are many forms to cover the many ways someone may be receiving income, such as with an employer, self-employed, retirement income, or income that comes from rental properties. When it comes to tax preparation, Hudson residents should make sure that they have at least one, if not multiple forms that document their income.

Records for Income Losses

Most people only think about reporting the information to the IRS that pertains to how much money they have made throughout the year. But in some instances, it may be just as important that someone reports their income losses as well when they are planning for tax preparation. Hudson residents might not know that they should be claiming all legal fees and expenses as well as income that they used for any hobbies. Many people may not be aware that there is a section that is dedicated to any and all income that was generated based off of gambling. Royalties are another taxable form of income that the IRS would like people to report, and this is all information that would be found on a 1098 form.

*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of Suncoast CPA Group*