United States Tax Return

Tax time is historically one of the most dreaded and worrisome times in our year.   As the April 15th deadline approaches we are consumed by the fear of taxes and the Internal Revenue Service. How can we get through this time of year? What should we be doing? How can we free ourselves of the overpowering doom that overcomes us with each tax season?

We should first recognize that a tax return is just a compilation of all our financial dealings for the year. Here we record and mark down in history the money we have made for the year, where we have spent it and where we have lost it.  Even when you have a professional prepare your return, you should still be able to locate and follow each entry to its origination.  Always know that no one knows the path of your finances more than you, not even your tax preparer.   Remember it is your signature that makes those forms, truth. Your signature is your bond, use it wisely. 

To begin to verify the return you should gather all documents and information used to prepare the return.  Then begin the tracking of all your line items starting with the first line, here is an example:

Both you and your spouse work and received w-2’s (income reporting documents) from your employer’s. Your w-2 says you made $50,000 and your spouse’s reports $40,000. The line on your tax return that asks for all w-2 wages should be $90,000.

You should proceed through the 1040, 1040ez or 1040a line by line tracking each number and verifying that it is correct.