The Ultimate Tax Checklist (2024)

Ready or not, tax season is here.

It’s time to start compiling your tax information if you haven’t already. Whether you take your taxes to a professional or you complete them yourself, there is an ample amount of work to do in preparation of filing your taxes.

Preparing yourself beforehand can save you time, money, and can help make filing your taxes a breeze. In short, adequate preparation can make tax season a whole lot easier for everyone if you have the right documents and information on hand before you get started.

Before you dive into filing your tax return, here’s everything you need to do before you start.

Forms of Identification

If you are going to a tax professional, you will need to provide proof of identification. Usually, this means you need to provide documents such as your driver’s license, passport, or something else. This is so tax professionals can verify your identity to ensure you aren’t posing as someone else or trying to steal someone’s identity.

Further, you will want to bring a voided check so you can route any tax refunds back into your checking account. Even if you have these numbers memorized, it is risky to go without a check with a printed routing and account number. In the event that there was just one small error, this could prevent you from receiving your tax refund – ever.

And while you won’t necessarily need copies of every family member’s social security card, you will want to make sure you at least have their social security numbers.

Gather Documentation of Income

Next, you will want to round up all of the documents that prove your income. While some documentation of income is more obvious, such as receiving a W2 from your employer, there are many less-clear documents that fall under this category.

Documentation of wages may include some of the following:

• W2: Every company you work for should supply you with a W2 if you are on their payroll. Starting in January, employers will send you your W2, which lists all of your income from them in the given tax year. They have until January 31 to send this to you. Keep in mind, if you worked for more than one employer throughout the year, you will be getting a W2 from each of them.

• 1099: Are you a freelancer? If you perform work as an independent contractor and earn over $600 for a client, then each client is required to provide you with a 1099 form. 1099s differ from W2s because you completed the work independently, so no taxes have been taken out of your income yet. (Did this catch you off guard? Read our post on quarterly estimated taxes to be ahead of the game next year.)

• 1099-Div: You will receive a 1099-Div if you received any dividend payments from investments such as stocks.

• 1099-R: If you withdraw money from a retirement plan, such as your IRA, 403(b), or 401(k), you will receive a 1099-R, which is vital for tax reporting purposes.

• 1099-Int: If any bank or brokerage account paid you more than $10 in interest, they are required to send you a 1099-Int form. Often, you can find these if you login to your bank online.

• W2-G: For any gambler, you will receive a W2-G if you win $500 or more through gambling. (Congrats! But yes you do have to pay taxes on these winnings. You can offset with any losses, as long as you kept track of them.)

Gather Documentation of Expenses

Next, you will need to gather documentation that proves your expenses. Even if you don’t own a business, there are plenty of expenses that may be deductible. Listed below are common expense you may want to find documentation for:

• Cost of education: If you went to college or took a class, you will receive a 1098-T from the institution. File this in your records for when you complete your taxes.

• Medical expenses: If you had high medical expenses this year, you will want to put any receipts in your tax file. In 2019, the IRS allows you to deduct medical expenses if they exceeded more than 10 percent of your Adjusted Gross Income.

• Donations and charitable contributions: Many people know you can deduct charitable contributions or donations. Whether you give cash to an organization, or you donate old clothes or furniture, always ask for an itemized receipt so you can deduct the expenses come tax time.

• Expenses related to self-employment: If you work for yourself, you likely incur quite a few additional expenses, such as mileage or the cost of a home office. Gather all of your receipts. If you’re self-employed, it’s a good idea to have an accountant on hand who can help you sort out your business liability as well. (If you didn’t keep good records last year, commit to starting this year.)

• Documentation of mortgage interest: If you own a home, your mortgage lender is required to send you Form 1098, which outlines how much you paid in interest during the given tax year.

• Moving expenses: For anyone who has moved during the tax year, you may be able to deduct the expenses from your income.

• Individual Retirement Account contributions: Since Traditional IRAs are made with post-tax dollars, you can deduct them from your income.

These are just a few of the most common expenses. If you have miscellaneous expenses, such as gambling losses, eco-friendly home improvements, union expenses, or something else, always keep the receipts and ask your tax professional.

Get Organized

Now that you have all of your necessary documentation, it’s time to get organized. If you work with a tax professional, you can save time and money by organizing yourself ahead of time versus simply handing your accountant a large stack of receipts.

Sort out your receipts by type. For instance, group all of your educational expenses together and total them up. Keep a running list of the total amount of expense you believe you can deduct. Organize your receipts by filing them by type and bring them when you meet with your accountant. This way, your receipts act as backup to the calculations you’ve already completed in the event your accountant has questions.

While we can’t give tax advice, if you’ve spent all the time and effort towards getting organized it may make sense to file your taxes yourself.

For complicated returns tax accountants can be helpful, but software like TurboTax will be sufficient for most returns.

Give Yourself Plenty of Time

Nothing is worse than the last minute scramble. Not only will you be more disorganized and flustered, but you will have a hard time finding a tax professional if you wait until the last minute. Start preparing for your taxes as early as possible.

Take Notes for Next Year

Taxes can be overwhelming, but in theory, they should get easier every year. Take notes during and after the process so you can make your next tax season even more efficient. Remember, good record-keeping is the key to a successful tax year. If you felt you weren’t as organized as you would have liked, take note and create an organizational system that works for you in the upcoming year.

Once you’ve gone through all these steps you are ready to file your taxes! We recommend using TurboTax to file your taxes.

How do you prepare for tax season? What were your biggest successes? What do you wish you did differently during last year’s tax season?