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Tax Preparation Checklist: What To Gather Before Filing.
20 August 2022
A tax preparation checklist may keep you organized and help you feel less stressed when it's time to file your taxes, whether you use tax software or work with a professional. Here is a list of all the paperwork and data you need to file your taxes.
What documents are required for tax filing? Review the tax preparation checklist below before you begin working on your return. Also, keep in mind that you will need all of the following details for your spouse if you are married and submitting a joint return.
Your personal information identifies you as the taxpayer, provides the IRS and state taxation authorities with your contact information, and enables them to deposit your tax refund.
· Your name, exactly how it appears on your Social Security card
· Date of birth
· SS# (Social Security number)
· Dwelling address
· A copy of the federal and state tax returns from the previous year
· Routing number and bank account information for direct deposit of your return
Dependent Knowledge The following details are required in order to determine if you can list someone else as a dependent.
· Dates of birth, names of dependents (as they are shown on their Social Security cards), and Social Security numbers (or tax ID numbers)
· If the custodial parent of your dependent kid is giving up their claim to the child as a dependent, they must complete Form 8332.
Resources for Finance Various forms describing the income you received in 2021 may be sent to you. Typical examples include:
· Your employer's W-2s (s)
· 1099-G documents for refunds of state or local taxes and jobless compensation
· For interest, dividends, and stock sales, use the 1099-INT, 1099-DIV, and 1099-B forms.
· 1099-R and SSA-1099 for Social Security benefits and disbursements from retirement plans
· Income from the sale of your home or other property is reported on Form 1099-S.
· 1099-MISC for rental property revenue
· 1099-Q for distributions from a Coverdell ESA or 529 plan
· 1099-SA for health savings account distributions (HSA)
· Income from a pass-through entity, trust, or estate, Schedule K-1
· Receiving alimony (if your divorce or separation agreement is dated on or before December 31, 2018)
· Records of all cryptocurrency transactions
· Information about additional income sources, such as gambling winnings, jury duty money, debt forgiveness, etc.
Business and Self-Employment Records If you work for yourself, you must disclose that revenue. Additionally, you can deduct business expenses from your taxable income.
· 1099-NEC or 1099-K forms demonstrating independent contractor revenue
· a list of every business expense and revenue
· Information about home office costs, including the size of the home and the area that is utilized only for business
· Records for depreciable company assets, including price and the date they were put into use
· Miles logged for professional purposes
Deductions Deductions can lower your taxable income and increase your refund or decrease the amount of tax you owe. In general, you have two options: itemize deductions or the standard deduction, which is a fixed amount dependent on your filing status. You need details on the following if you itemize deductions:
· uninsured medical expenses
· payment of long-term care insurance premiums
· Any mortgage interest, mortgage insurance payments, and points you paid during the tax year are shown on Form 1098.
· property taxes
· local sales taxes or state and local income taxes
· Taxes paid with the registration of your vehicle
· Charity contributions
· Keeping records of casualty losses (if you lived or owned property in a federally declared disaster area)
If you qualify for any of the following modifications to income deductions, you can still claim them even if you don't itemize.
· Form 1098-E for interest on student loans
· Contributions made to an HSA, IRA, SEP, or self-employed retirement plan must be documented.
· Paid maintenance (for divorce or separation agreements dated on or before December 31, 2018)
· Classroom supplies were paid for by teachers' expenditures.
· self-employed health insurance premiums
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Sha’Tonya “Rosie” Thomas
The Texas Tax Pro. She opened the doors to her very first tax office in Dallas, Texas back in 2009. The first tax office Rosie has turned into a powerful enterprise now known as Thomas Financial LLC. Till date, Rosie has coached 110 plus tax professionals, of which 56 of those now run their own successful tax office. These are the stats that have earned her the moniker “The Texas Tax Pro”.