Preparing early makes tax season smoother, less stressful, and potentially more profitable. Here are the five most important things to gather and organize before filing:
1. Income Documents
- W-2 forms (from employers)
- 1099 forms (contract work, interest, dividends, retirement income, etc.)
- Business income statements (if self-employed)
- Rental property income records
2. Deduction & Expense Records
Organize receipts and documentation for possible deductions:
- Mortgage interest statements (Form 1098)
- Property tax payments
- Charitable donation receipts
- Medical expenses
- Business expenses (if applicable)
- Mileage logs
3. Tax Credit Information
Gather documentation for:
- Child Tax Credit
- Childcare expenses
- Education expenses (Form 1098-T)
- Energy-efficient home improvements
- Adoption expenses
4. Personal & Dependent Information
Have updated information ready:
- Social Security numbers for you, spouse, and dependents
- Dates of birth
- Bank account & routing number (for direct deposit)
- Prior year’s tax return
Your previous return is especially helpful for ensuring consistency and accuracy.
5. Retirement & Investment Records
If you contributed to retirement accounts or sold investments, gather:
- IRA contribution statements
- 401(k) contribution records
- Brokerage 1099-B forms (stock sales)
- Cryptocurrency transaction summaries