Hired, Fired, or Retiring? H&R Block Offers Tax Tips to Alleviate Confusion

 
 

For those who are confused when it comes to filing their taxes because their employment status changed throughout the year, H&R Block has a number of tips to help make it a bit easier. According to the Bureau of Labor Statistics, nearly 4.2 million workers were hired in December 2012 while more than 8.7 million people were self-employed and many made the decision to retire.

For those first-time filers, choose a tax preparation method – either do-it-yourself software or online tax programs, or employ a qualified tax professional; choose the accurate filing status; and file your taxes on time.

For the self-employed taxpayer, H&R Block encourages you to maintain, organize, and retain the right documents to show how much money is coming in, how much money is going out, and where it’s going. This documentation may include prior year federal and state tax returns, insurance records, and legal correspondence; receipts, invoices and bills; mileage log documenting car use for business purposes; utility bills and records of repairs to your home office; and health insurance payment receipts.

Finally, for those about to retire, take into account all the sources of retirement income – things like pensions and employer retirement plans, Roth IRAs, traditional IRAs and 401(k) plans, annuities and life insurance policies, stocks and bonds, and interest on savings accounts.