Tax Checklist

Not all medical expenses are tax deductible, but you can claim those expenses if they make up a high enough percentage of your gross income. Make sure you get receipts for any charitable contributions you’ve made throughout the year. If you donate to a cause and get something in return, like a T-shirt, the organization will issue you a receipt showing the portion of your donation that is tax deductible.

Tax Preparation Checklist

Some categories may not apply each tax season, so you should only include what applies for 2022 on your small business tax checklist. If you produce, purchase, or sell merchandise in your trade or business, you’ll need to take your inventory into account at the beginning and end of the year. This tax prep checklist covers preparation issues common to most filers, but taxes are different for each of us. Be prepared to tailor the tax prep checklist to your situation. Get unlimited advice, an expert final review and your maximum refund, guaranteed with Live Assisted Basic. SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S.

Educational Expenses

Since preparing taxes happens only once a year, we’ve put together a checklist with five items to help you gather all the documents you need beforehand. A financial advisor can also help you optimize your tax strategy to reach investing and retirement goals. A tax preparation checklist allows you to get organized and retrieve the necessary documents and information for compiling your tax return. Along with personal information, the checklist contains information about your income, adjustments to income, tax deductions, and other information as required by the IRS. For tax purposes, income is any money you receive from any source that is not a gift.

  • Links provided to small business article and nerdwallet are provided as a courtesy and not a recommendation of these applications.
  • The government offers a number of deductions and credits to help lower the tax burden on individuals, which means more money in your pocket.
  • Win with taxes (and avoid costly mistakes) when you do your taxes the Ramsey way.
  • The documents can be used for both your federal and California state return.

Before you start working on your return, review the tax prep checklist below. And remember, if you’re married and filing a joint return with your spouse, you’ll need all of the following information for them as well. Deductions help reduce your taxable income, which generally means a lower tax bill. The key to claiming deductions is documentation — not only can it protect you if you’re ever audited, but it can also cut your tax bill by helping you remember what to claim.

Tax Deductions and Credits

Bring documentation for all of the following expenses you have. Include receipts for all local and state taxes paid during the previous year. If you own a vehicle, include receipts  of your vehicle license fees, and a statement of the estimated value of your vehicle. You should keep records for at least three years from the date that you filed your most recent tax return. This is how long the IRS is permitted to audit most returns. However, under unique circumstances, experts say it’s best to keep up to seven years of tax returns on hand — filed away in a secure box at home or a safe deposit box.

Tax Preparation Checklist

Even if you’ll be returning to the same tax preparer you’ve used for years, it’s always wise to bring along some identification. This is especially important when you plan on requesting a refund anticipation loan (rapid refund), since preparers are required to keep a copy of your current ID on file. Did you withdraw money from your retirement account this year? Make sure you have a 1099-R form showing that income. But remember, if you withdrew from a Roth IRA, you don’t have to pay taxes on those funds.

Other Sources of Income

Generally, you’ll need the following documentation to claim potentially valuable tax credits. Be sure to include all income sources when creating your small business checklist. This could include income from your day-to-day operations as well as any investment or secondary income. Pull up a chair in our office or stay put on your couch.

Note that state income taxes paid should be on your W-2, but remember to add any state estimated taxes you paid during the year. Many of these forms won’t be needed to file taxes every year. For example, you will only receive the investment forms you may need to file your taxes if you had distributions or other activity. Let an expert do your taxes for you, start to finish with TurboTax Live Full Service. Or you can get your taxes done right, with experts by your side with TurboTax Live Assisted. Just answer simple questions, and we’ll guide you through filing your taxes with confidence.

Get Help Filing Your Return

With eFile, you can file your individual income tax return, including all your income from wages or employment, your small business, retirement, stocks and investments, and other income. Use this checklist from H&R Block to get prepared and store any relevant documents in a central location so you’re ready for your accountant, TurboTax, or your abacus. On it, you’ll find your income and how much you paid in federal, state and FICA taxes throughout the year. You’ll also find your employer’s identification information.

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