Tax season can be overwhelming, but with the right preparation, you can make the process smooth and even uncover potential savings. Whether you’re filing on your own or working with a tax professional, having the necessary documents and information ready is crucial. From W-2s and 1099s to personal deductions and business expenses, this checklist will help ensure you’re not leaving money on the table.
Taking the time to prepare properly can not only help you file accurately but also maximize your financial well-being. Let’s dive into the key items you need to gather before filing your taxes!
Essential Tax Documents to Gather
1. Income Documents
Ensure you have the necessary forms that report your income:
- W-2 – If you are employed.
- 1099-R – If you withdrew money from a retirement account.
- W-2G – If you had gambling winnings.
- 1099 Forms – If you earned income from freelance work, contract jobs, or investments.
2. Personal Tax Deductions
Deductions help lower your taxable income. Gather records for:
- Mortgage interest statement (Form 1098).
- Real estate and property taxes paid.
- Vehicle registration and car tabs (in states where this is deductible).
- Medical expenses (Note: You need significant medical expenses to qualify for a deduction).
- Charitable contributions (Keep receipts for cash and non-cash donations).
3. Business and Rental Income & Expenses
If you are self-employed or own rental properties, you’ll need:
- Income records from clients, tenants, or rental platforms.
- Expense records for office supplies, business travel, home office use, property repairs, etc.
4. Retirement Contributions
Contributing to a retirement account can provide tax advantages. Ensure you have documentation for:
- IRA or 401(k) contributions that may qualify for deductions.
- Employer retirement plan statements showing contributions.
5. Real Estate Transactions
If you bought or sold property, you will need:
- Settlement statements from closing.
- Records of capital improvements for possible deductions.
6. Prior Year’s Tax Return
If you’re working with a new tax preparer, bring a copy of last year’s return to help identify deductions and credits you may be eligible for.
Final Thoughts: Prepare Your Taxes with a Purpose
Filing your tax return is more than just a yearly obligation—it’s an opportunity to make smart financial decisions. A well-prepared tax return can reduce your tax liability, increase your potential refund, and improve your financial security. Take the time to gather these documents, and if needed, seek professional guidance to ensure you maximize your tax benefits.
Are you ready for tax season? Use this checklist to stay organized and file with confidence!
Reach out to Jim Mertz today to learn more to plan your personal financial wellness journey.
