While you’re likely still recovering from the holidays, you might also be charting out what your new year will look like. It’s also a good time to get as ready as you can for tax season. To get you going, we’ve provided atax preparation checklist below.
This tax preparation checklist is broken down into a few sections to give you a clear view of the kinds of records you’ll be responsible for during tax season.
Personal and Income Information
If you haven’t already, you’ll soon be getting tax documents pertinent to your identification and income. As they come in, use this tax preparation checklist to keep track.
Income Information
Unless otherwise specified, outside parties are required to send you these documents by January 31:
- Form W-2: This form details your annual wages and tax withholdings.
- Form 1099-MISC: If you’re a freelancer or independent contractor, this form shows how much you’ve earned. Each of your individual and company clients should send Form 1099-MISC to you.
- Form 1099-INT: This form details your interest earnings.
- Form 1099-R: If you received income from annuities, IRAs, or pensions, it’s reported on this form.
- Form 1099-DIV: This form shows your annual dividend income.
- Form 1099-B or 1099-S: These forms report income from the sale of stocks or property. Brokers have until February 15 to send these forms out.
- Form 1098: Your mortgage company sends you this report of interest that you paid over the year.
- Form 1098-T: This form reports payments toward qualified tuition and expenses.
- Form 1095-A or 1095-C: If applicable, these forms detail your healthcare coverage and premium tax credit for the year.
- Schedule K-1 (Form 1065, Form 1120S, or Form 1041): These forms detail income from partners, shareholders, or beneficiaries from an estate or trust. Schedule K-1s must be sent no later than March 15.
Tax Deduction and Credit Documents
If applicable, you should prepare the following documents related to income reductions:
- Form 1098-E, which details payments for student loan interest or loan statements for student loans you’ve received
- Form 1098-T, which shows paid tuition or receipts from educational institutions your dependents attend
- Receipts for qualified home improvements for energy efficiency
- Records of contributions to your IRA for the year
- Information on self-employment pension plans, SEP or SIMPLE
- Records of contributions to your medical savings account (MSA)
- Records and receipts for moving or relocation expenses
- Records for payments to self-employed insurance plans
- Records of alimony payments if your divorce was finalized on or before December 31, 2018, as put forth by the Tax Cuts and Job Act of 2017
Personal Information
This tax preparation checklist is important for making your filing experience as painless as possible. Have the following items for both you and your dependents at hand:
- Social Security numbers and birth dates
- Bank account and routing numbers for direct deposit of your refund
- Copies of last year’s tax return (This isn’t a requirement, but could be useful.)
Itemization Documents
It’s smart to itemize your annual deductions. Have records and proof of these expenses ready.
Deductions and Credits
- Childcare (provider’s name, tax ID, and address, along with the paid amount)
- Education (Form 1098-T and payments)
- Adoption (child’s SSN, plus legal, medical, and transportation costs)
- Mortgage interest and private mortgage insurance (Form 1098)
- Investment interest
- Charitable donations (official charity receipts and amounts)
- Paid medical and dental expenses
- Theft and casualty losses (damage amount and reimbursements)
- Miscellaneous deductions (union dues, unreimbursed employee expenses)
- Home business expenses
Paid Taxes
- State and local income
- Real estate
- Personal property
Get More Help With Your Tax Preparation Checklist
While you’ll receive documentation regarding your investment accounts directly from the companies you invest in, at Premier Planning Group, we want to help you stay organized. That’s why we mail our clients a red folder to keep documents in, making it easier when tax time rolls around.
The Premier Planning Group Wealth Management team is here to help you through your tax preparation checklist. To find out more,contact me online. You can also call our office at (443) 837-2520 or email my executive assistant, Talia Grover, at taliagrover@premierplanninggroup.comto set up a complimentary consultation.
About Brion
Brion Harris is the CEO, founder, and managing partner of Premier Planning Group, an independent financial firm specializing in working with pre-retirees and retirees, helping them create customized wealth preservation and retirement distribution strategies. With over 20 years of experience, Brion has developed deep knowledge and skill in helping his clients simplify their finances and find confidence in their financial future. Brion and the Premier Planning team are known for their unparalleled client service and their dedication to building long-lasting relationships with their clients. As a result, Brion has been the recipient of the #1 Advisor Leadership Award* at Summit Brokerage Services for eight years running and has a reputation as one of the top retirement advisors in the business.
Brion is a proud 20-year resident of the Annapolis community, where he resides with his wife, Elizabeth, their three children, Addison, Jay, and Scarlett, and their two dogs, Pepper and Coco. When he’s not working, you can find him boating, skiing, traveling, and enjoying good food and music with his family. If you want to learn more about Brion, connect with him on LinkedIn.
*The #1 Advisor and Leadership Award are based on production data while at Summit Brokerage Services, Inc. Brion Harris received the award in 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021. This award is not a guarantee of future investment success. This recognition should not be construed as an endorsement of the advisor by any client.