Ready or Not …
February 9, 2012 Leave a comment
Ready or Not Here Comes April 15th
OK , OK it’s only February and the tax filing deadline is still two months away.
But do you have everything you need to complete your tax return? By this time you should have received your W-2 from your employer. If you have not received this document, give your employer a call. If you are an employer those statements were due to employees by January 31st. You have a little more time with 1099 statements.
This is an excellent time to look at all income and allowable deductions for the past year. For persons who are self-employed determining all of your business deductions as well as allowable medical deductions is a first step in managing your finances and reducing taxable income. If you are employed, your allowable deductions are stated on the 1040 form.
Some of you use the EZ form and deductions are not a consideration. Since most Social Security beneficiaries do have medical deductions, using the standard tax return may be a better option. Doing both forms may tell you which way provides a refund or reduced taxes.
Individuals with income from Social Security (SSA) for a disability should be reporting earned income to SSA on a regular basis. Doing this every month means there is an up to date history of your earnings on file. If the answer is anything but yes start now to report your earnings to SSA, this should be a priority for this year.
If you are employed mail copies of your pay stubs each month to the local SSA office. Keep the original copies for your files. Send the pay stubs registered mail so that it is signed for by a Social Security employee proving that it was sent and received. Self Employed individuals have a different process. A copy of your tax return is required each year. When mailing this information, send it registered mail as well.
Filing a tax return shows you how much income you have earned this past year. Many individuals want to earn enough money to be self-sufficient and financially successful as possible. Reaching this goal will have an impact on SSA benefits. Keeping records will assist in accurate outcomes.
If you are receiving Social Security (SSA) benefits you may want to know how your benefits are affected by working. To obtain information specific to you and your SSA benefits, contact your Bene Plan specialist. These informed professionals are part of the Work Incentive Planning and Assistance (WIPA) program. Your local Social Security office can provide the correct contact information.
For those of you who have filed your tax return for this year, congratulations! Start now to keep organized files for wages and deductions so next year will be easier!