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OWLFI’s 2021 tax filing checklist for tax preparation
April 9, 2021 at 7:00 AM
Tax preparation is a year-round necessity. That's why an advisor is essential. Most people simply don't have the time to keep up with everything like they should.

For most, filing taxes isn’t exactly a good time. However, neglecting tax preparation can have devastating results. Especially when retiring, tax planning is essential. The last thing you need is tax complications.

If you’re wondering what you need to file your 2021 taxes, we have you covered. OWLFI has been servicing the greater Kansas City area with expert, unrivaled tax counsel for years. We’re committed to setting you up for long-term success!

Before planning

Before you start planning, there’s plenty of tax preparation you can do. For example, you can consolidate all important documentation into a single folder.

This often requires a consultant because it’s difficult to know exactly what documents you need. Everyone’s situation is as unique as the lives they live. A good tax advisor understands there aren’t cookie-cutter solutions.

While some information may be inaccessible, consolidating whatever personal information you already have access to is key. This includes things like domestic and foreign bank information. Plus, if you haven’t already, you should document all significant transactions.

Personal and income information

The IRS needs to know precisely who you are and what’s covered in your tax return. This part of tax preparation requires personal identifying information.

You’ll need your Individual Taxpayer Identification Number or Social Security Number. Photo identification and date of birth are also required. If married, you’ll also need your family’s information. This includes your spouse’s and children’s.

The IRS will also need to know everything about your income! This includes:

  • W-2 forms
  • Investments
  • Unemployment
  • Business or farming income
  • Social Security benefits
  • Miscellaneous income
  • Home office expenses and specifications
  • Taxable alimony

This is just the tip of the iceberg. The process is nuanced and requires an experienced, qualified tax advisor to optimally navigate. Plus, each claim requires its own unique form. This is why a qualified tax advisor like we have on staff at OWLFI is imperative.

Adjustments to income

When considering tax preparation, it’s important to remember doing a thorough job will only help in the long run. Adequate preparation means less money owed and more money refunded. That’s where adjustments to income come in. You’ll need documentation of things like:

  • Energy credits
  • MSA contributions
  • Self-employed health insurance premium payments
  • IRA contributions
  • Job search expenses
  • Student loan interest
  • Moving expenses

Consulting with a tax advisor is crucial. Only qualified tax advisors fully invested in your case can truly assess what you’re eligible for. That’s precisely who we have on staff at OWLFI. We maximize your return and minimize what you owe.

Deductions and other credits

The government offers multitudes of deductions and credits to reduce tax burdens. However, the only people who can truly navigate the jargon and complex tax language are tax advisors. There’s no surer way to optimize your tax situation. Some key deductions are:

  • Child care costs
  • Medical/dental expenses
  • Education costs
  • Donations
  • Adoption costs
  • Investments
  • Mortgage interest and points paid

Getting this documentation in order is essential when filing taxes. You’re doing yourself and your tax return a disservice by not taking tax preparation like this seriously.

Taxes paid

Lastly, having a thorough and accurate record of what you’ve already paid in taxes is critical. This ensures you don’t overpay or underpay. Especially when retired, surprises down the road are important to avoid!

Contact us now for a consultation!

If you need a tax advisor to file taxes in 2021, OWLFI is the premier solution in the Greater Kansas City area. Especially with tax preparation, the adage is true: you can never be too prepared. With our tax counsel, you can sit back, relax, and enjoy retirement. Contact us now for a consultation to set up your long-term tax relief!

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