Time to file your taxes!

Aside from giving your W-2 to your accountant, what are the other documents you can use to get more tax refunds? There’s a term you need to know called “tax deduction” and it is a reduction of income that is able to be taxed. Examples include charitable donations, health savings account (HSA) contributions, mortgage interest, contributions for IRA, etc.

Here we categorize the documents you may need to file your taxes! Take a look at the following checklists so that you won’t forget anything!

Do you know the three different categories of documents you need when filing your taxes?

□ Proof of identity (driver’s license / ID card, Social Security card, passport)
□  Proof of income (including foreign earned income)
□  Itemized tax deductions and credits

Information about your income/adjustments to your income:

□ Wage income (Form W-2)
□ Self-employment income (Form 1099-MISC)
□ Interest income (Form 1099-Int)
□ Dividend income (Form 1099-Div)
□ Stock transaction details (Form 1099-B and Form 8949)
□ Pension or retirement income (Form 1099R)
□ Social Security income (SSA-1099)
□ Real estate transaction income (Escrow Statement)
□ Rental income and expense
□ Sole proprietor business income and expense
□ Cash or non-cash gift or inheritance
□ Form K-1 from partnership, S corporation, or Trust

If you have foreign assets:

□ Foreign bank, investment, retirement and insurance account monthly statements
□ Foreign income (wages, interest, dividends, rental income, etc.)
□ Foreign expenses
□ Foreign partnership or corporation financial statements and tax returns
□ Foreign individual tax returns

Itemized tax deductions and credits:

□ Rental income and expense
□ Home mortgage interest statement (Form 1098)
□ Real estate tax statements
□ New home escrow state and new car purchase statement
□ DMV license fee
□ Child and dependent care expense with the provider’s ID and address
□ Children education expense (Form 1098-T)
□ Medical expense
□ Charity donation receipts
□ Prepaid estimated tax records
□ Cash or non-cash gift or inheritance
□ Form K-1 from partnership, S-corporation, or trust

Please note that this is just a general list for tax returns. If you have any questions, please consult a professional accountant!

Aside from all these tax documents, many accountants also suggest opening an IRA to save on taxes. Traditional IRA is more popular in the Chinese community because not only can you save on tax returns immediately, but you can also earn more benefits.

KCAL Insurance Agency is a professional broker that carries IRA products from A-rated insurance companies. Open an account with us before March 31 and you can earn up to a 20% bonus! That means that if you open an account with $10,000, you can get a $2,000 bonus right away!

You can also participate in our monthly draw where you can enter for a chance to win an iPad! You may be the lucky person who goes home with it tonight!