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Monday
Feb062012

Tax Tip: Things to Do Before You File

Comstock Images/Thinkstock(NEW YORK) -- The countdown to Tax Day is underway, and while many may dread filing their taxes, the process can be made easier with some organization.

"The first thing everyone should do before they even put pen to paper or go online to file their taxes is to get everything in order," advises Farnoosh Torabi of Yahoo Finance.

That includes "All your W2s, your 1099s if you are freelancing, if you work on the side; all of your receipts, [and] if you have any deductions that you want to qualify for," Torabi explains.

He adds, "It's really important to get a paper trail going."

And once you have all that paperwork together, tax accountant Janice Hayman says, "It's really important to make certain that you report all of your earned income, all of your investment income -- basically income from all sources, and you don't want to forget to claim every possible deduction you're entitled to."

Those deductions may include charitable donations and business expenses you paid for, plus state and local income taxes.

Copyright 2012 ABC News Radio







ABC News Radio