he new year is upon us, and with it comes the start of tax season. Instead of waiting for a last-minute scramble, getting a head start on your tax preparation is a move that can save you time, stress, and money. At Lightening the Load, we believe in a proactive approach, and this checklist is designed to get you organized and ready for a smooth tax filing experience.
Your Essential Tax Season Checklist
1. Personal and Family Information
Start with the basics. Having this information ready at the beginning of the process ensures a seamless flow.
- Social Security numbers for you, your spouse, and any dependents.
- Dates of birth for everyone on your return.
- If you were issued one by the IRS, your Identity Protection PIN.
2. Income Documents
This is the cornerstone of your tax return. Gather all documents that report your income from the prior year.
- W-2s from all employers.
- 1099 Forms (1099-NEC for independent contractor work, 1099-INT for interest, 1099-DIV for dividends, etc.).
- SSA-1099 for Social Security benefits.
- Any other forms reporting income, such as from rental properties or side hustles.
3. Deduction & Credit Documentation
To ensure you’re taking advantage of every tax break you qualify for, you need to have the proper documentation.
- Records of charitable contributions, including cash, checks, and donated items.
- Homeownership records, such as your Form 1098 for mortgage interest and records of real estate taxes paid.
- Receipts for medical expenses not covered by insurance.
- Records of education expenses, including Form 1098-T from educational institutions.
- Business expenses, including mileage logs and receipts for supplies, travel, and meals.
4. Tax Payments Made
Don’t forget to account for the taxes you’ve already paid. This can significantly reduce or eliminate your final tax bill.
- Records of estimated tax payments made throughout the year.
- Any payments made with a prior-year extension request.
5. Business and Self-Employment Documents
For small business owners and those in the gig economy, your record-keeping is vital.
- Profit and Loss statement for your business.
- Records of all business expenses, categorized by type.
- Documentation for assets purchased for business use, which may qualify for depreciation.
Don’t wait until January! Use this checklist to get a head start on your tax preparation. And if you need help, we’re just a call away.
