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Simplify Tax Season With This Checklist Thumbnail

Simplify Tax Season With This Checklist

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Your Tax-Preparation Checklist


It’s that time of year again—tax season—when organizing receipts, gathering documents, and navigating deductions can feel like a full-time job. But filing your taxes doesn’t have to feel like a maze of paperwork and last-minute panic. With a little preparation and a clear plan, you can turn the annual scramble into a smooth, stress-free process. 

 

Whether you’re filing as an individual or managing the complexities of a small business, this guide can help you gather everything you need and set your tax season up for success. Use our following checklist to take the guesswork out of getting organized and make this your easiest tax year yet.

Organize Your Personal & Income Information

You’ll start receiving various tax documents virtually or in the mail soon, so instead of letting them sit in a pile on your counter, create an organized system for the following.

Income Information

  • Form W-2: These are issued by employers and show your wages and tax withholdings. They are supposed to be mailed by January 31.
  • Form 1099-MISC: These report income you have received as an independent contractor or freelancer. You should receive one from each person or company that pays you.
  • Form 1099-INT: This form will show any interest you have earned.
  • Form 1099-R: This form reports income received from annuities, IRAs, or pensions.
  • Form 1099-DIV: Any dividend income you earn is reported on this form.
  • Form 1099-B or 1099-S: You will receive these if you have any income from the sale of property or stock.
  • Form 1098: You will get this from your mortgage company reporting the interest that you paid.
  • Form 1098-T: This reports payments of qualified tuition and expenses.
  • Form 1095-A or 1095-C: These forms report your healthcare coverage for the year and your premium tax credit, if applicable.
  • Schedule K-1 (Form 1065, Form 1120S, or Form 1041): This reports income for a partner, a shareholder, or an income beneficiary of an estate or trust. The Schedule K-1 normal deadline can be as late as April 15th.

Income-Reduction Documents

  • Form 1098-E for student loan interest paid, or loan statements for student loans received
  • Form 1098-T for tuition paid or receipts from the institution you or your dependents attend
  • Receipts for any qualifying energy-efficient home improvements
  • Records of IRA contributions made during the year
  • SEP, SIMPLE, and other self-employed pension plan information
  • Records of medical savings account (MSA) contributions
  • Moving expense records
  • Self-employed health insurance payment records
  • Alimony you paid if your divorce was finalized before December 31, 2018

Personal Information

If you want your tax-filing experience to be painless, you’ll also want to make sure you have all of your and your dependents’ personal information available, such as: 

 

  • Social Security numbers and birth dates
  • Copies of last year’s tax return (helpful, but not required)
  • Bank account number and routing number, if you wish to have your refund deposited directly into your account

Gather Documents for Itemization

If you’re planning to itemize your deductions this year, you’ll need records to include your totals and provide proof. 

Deductions and Credits

  • Childcare costs: provider’s name, address, tax ID, and the amount paid
  • Education costs: Form 1098-T, education expenses
  • Adoption costs: SSN of the child; records of legal, medical, and transportation costs
  • Form 1098: Mortgage interest, private mortgage insurance (PMI), and points you paid
  • Investment interest expenses
  • Charitable donations: cash amounts and official charity receipts
  • Medical and dental expenses paid
  • Casualty and theft losses: the amount of damage, insurance reimbursements
  • Records/amounts of other miscellaneous tax deductions: union dues; unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.)
  • Records of home business expenses

Taxes Paid

  • State and local income tax
  • Real estate tax
  • Personal property tax

Updates for the 2025 Tax Year

There are some important things to keep in mind when filing your 2024 tax return. Depending on your filing status, some taxpayers may receive significantly smaller refunds due to these factors:

 

  • The Child Tax Credit is worth a maximum of $2,000 per qualifying child.
  • The Earned Income Tax Credit remains at $632 for eligible taxpayers with no children.
  • The Child and Dependent Care Credit allows you to claim from 20% to 35% of your care expenses up to a maximum of $3,000 for one person, or $6,000 for two or more people. 

Stay on Top of Tax Changes

Those lists cover the details of what you’ll need in front of you to thoroughly fill out your tax return. But there are also a few things to think about that could impact how you file, such as any changes that have occurred this year. Did you add another child to your family? Did one of your children start college? Did you start taking withdrawals from a retirement account? All these changes need to be reflected on your tax return but won’t show up on prior returns.

 

Specifically, you should stay on top of annual changes to retirement plan contribution limits. For the 2025 tax year, you can put up to $7,000 in any type of IRA. If you are over age 50, that amount goes up by $1,000 with the catch-up contribution. 2025 annual contribution limits for 401(k)s, 403(b)s, and most 457 plans are $23,500. If you are 50 or older, your yearly contribution limit goes up to $31,000. And if you are eligible to contribute to an HSA, you can save $4,300 if you have single medical coverage, and $8,550 if you are covered under a qualifying family plan in the year 2025. If you are 55 or older, those limits go up another $1,000. Keep in mind that for IRAs and HSAs, you have until April 15th, 2025, to contribute for the 2024 tax year. 

 

A knowledgeable financial professional can help you understand any tax law changes and how they affect you.

Plan for What’s Ahead

Even with the uncertainties of the world right now, it’s crucial to file your 2024 tax return accurately and on time. Equally important is taking a step back to consider the bigger picture, leveraging every tool available to help reduce your tax liability and keep more of your hard-earned money.

 

Let’s face it: taxes are anything but simple. That’s why partnering with a professional who understands the complexities can make all the difference. An experienced financial advisor can help you approach tax planning strategically, aligning it with your broader financial goals.

 

If you’re ready to take a proactive approach to tax planning and haven’t yet found a trusted advisor, John B Bennett, CFP® and the team at Boyer and Sappenfield Investment Advisors would be honored to assist you. Let’s work together to bring clarity and confidence to your financial plan. Call us today at 217.339.3206 to schedule an appointment!


Tax preparation and services are not affiliated with Cambridge Investment Research Inc.