Question: I’m preparing for tax season, and it’s leaving me a bit overwhelmed. What documents should I have ready?
Answer: Here is a list of the paperwork you need to file your taxes correctly.
Personal information
Your list must include things like personal information and tax ID numbers. To do their taxes, all taxpayers will need the following:
- Your tax ID number or Social Security number
- Full name, Social Security or tax ID number, and date of birth of your spouse
- Identity Protection PIN
- Routing and account numbers to get your refund by direct deposit or to pay your balance due
Information about a dependent(s)
Parents or caregivers should get this information as they review what they need to file their taxes:
- Birthdates and Social Security or tax ID numbers
- If applicable, child care records, including the provider’s tax ID number
- How much money your children and other adults in your home make
- Form 8332
Sources of income
You won’t have to fill out all these forms every year. For example, you won’t get the forms for your investments you might need to file your taxes unless you got money from them or did something else.
- Forms W-2 for employed people
- 1099-G for unemployed people
- Form 1099, Schedule K-1 and income records for self-employed people to check amounts not reported on 1099-MISC or 1099-NEC
Check registers, credit card statements and receipts to track expenses
For depreciation, a business should know how much an asset costs, when it was put into service, etc.:
- Form 1040–ES to track how much tax was paid and when
- Rental income and expenses record
- Information about rental assets (cost, date put into service, etc.), which is needed for depreciation
- Form 1099-R to report income from a pension, IRA or annuity
- SSA-1099, RRB-1099 (for income from Social Security and from railroad retirement)
- Form 1099-INT, 1099-OID, 1099-DIV (for interest and dividend income from savings and investments)
- Form 1099-B and 1099-S (for income from selling properties and stocks)
- Dates of purchase and records of how much or how little you paid for the property you sold (if the basis is not reported on 1099-B)
- Form 1099-SA or 1099-LTC (for health savings accounts and paybacks for long-term care)
- Form 1099-C (if you have settled debts and saved more than $600)
- Investment expenses
- Form 1040–ES (to track how much tax was paid and when)
- Cryptocurrency transactions
Itemized tax credits and deductions
The government provides a range of credits and deductions to reduce individual tax burdens, putting more cash in your pocket. You’ll need the following documentation to ensure you receive all the deductions and credits you are entitled to:
- Child care expenses: name, residence, tax identification number and amount paid
- Form 1098-T: education expenses
- Costs of adoption: SSN of the adopted child, legal, medical and travel expenses
- Form 1098 (points and interest paid on your mortgage)
- Interest paid on investments
- Donations to charity: cash sums, the market worth of gifts of property, driving distance and out-of-pocket costs
- Energy credit
- Losses due to accidents and theft (the amount of damage and insurance payments)
- Union dues and other erratic tax deductions, including unreimbursed employee costs
- Dental and medical costs