According to local certified public accountant Pamela J. Ransom,
the key to stress-free return preparation and filing is
organization. Here are a few steps to help get organized.
Compile your documents. Official tax documents are sent from
many sources and fall into two categories, documents reporting
income and documents reporting expenses, Ransom said. The most
common forms are W-2s and the 1099 series for income and the form
1098 series for expenses.
Determine which form to file for both federal and state
taxes.
For federal, there are three major forms: 1040-EZ, 1040-A, and
1040.
For Colorado, there is form 104.
The basic forms are located at the United States Post Office and
online.
Information for filing tax returns is available through the
Internal Revenue Service, at www.irs.gov, or by calling 1-800-829-1040
as well as through the Colorado Department of Revenue at www.colorado.gov/revenue/tax
or by calling 303-238-7378.
The complexity of your tax returns should determine who prepares
them and how they are prepared, Ransom said. If your taxes are very
simple you can fill the forms by hand. Those who need a little more
help, can purchase tax software. For those who have questions about
deductions, how to report income and multi-state returns, it is
advisable to hire a tax professional who knows the ins and outs of
the forms and tax laws.
File your returns. Paper returns can be filed by mail, or
returns can be done electronically and filed via computer, she
said. Electronic filing will process refunds faster and having the
money transferred directly into one’s bank account will also
expedite a refund.
Lastly, before filing a return, make a copy of the tax return
and keep it with all the back-up forms and information used to
prepare your return. In general, keep the returns indefinitely and
the supporting documentation for at least three years, though it is
best to keep the documentation for six years.