After your tax withholding is in place it is time to plan for that first tax return. It is important to make absolutely sure that you have all your relevant documents in hand before submitting your return. If you miss something you can file an emended return down the road, but this can be a complicated and time consuming process. As with everything else, it is better to do things right the first time when it comes to your taxes.

If you were employed during the previous year you will receive a W2 form from your employer by the end of January. If you worked for more than one employer you will receive a W2 from each one, so make sure you have all of your W2’s in hand before filling out the tax return.

In addition to the W2 form you may receive some additional income documents, and again it is important to make sure you have all your paperwork ready to go before proceeding. If you earned interest on a bank account you will receive a 1099 form from the bank or financial institution. Depending on your circumstances you may receive more than one, so be sure you have everything in hand before moving on. Brokerage firms and investment companies will also issue 1099 forms, and it is important to keep track of all the paperwork you receive.

When gathering up all your documents keep in mind that the IRS receives copies of everything as well. Any mismatch in the amounts reported could trigger a request for additional tax, along with interest and penalties. That is why it is important to go through every document and make sure that the amounts reported and recorded accurately on the appropriate tax form. The many tax preparation software packages on the market make this job much easier than it used to be, even moving the figures to the appropriate form and filing those forms electronically for free.