My hope for you this first quarter of 2025 is simple: That you have the most stress-free tax season possible. For that to happen, you have to start NOW – primarily, to get a jump start on gathering your documents. Life gets away from you, I know – the kids’ basketball games, work deadlines that keep piling up, and SO many loads of laundry – and suddenly it’s April 15th! Unfortunately, IRS doesn’t take kindly to these excuses (however valid).
Just do one thing right now – Get a folder/envelope and start putting all tax-related documents in that folder/envelope as they come in. Don’t just pile papers on your desk and hope for the best. (Here are some more audit-proofing tips in our article Audit-Proofing your Tax Returns)
When you’re ready to send your information to us, gather your tax documents and sort them into these four categories:
Income
W-2’s from your employers (you may have multiple)
Form 1099-NEC’s if you’re self-employed (you may have multiple)
Investment Statements – 1099-DIV, 1099-INT and 1099-B (stock sales)
Form 1099-R and SSA-1099 for pensions, IRA distributions and social security income
Form 1099-K from Uber, Etsy, AirBNB may issues these if you received over $600
Deductions and Credits
Unless you own a business (or are self-employed), you probably won’t itemize many deductions on your personal tax return. Most people claim the standard deduction. BUT… you do want to get together receipts and other records for what you paid in mortgage interest, student loan interest, charitable donations, and medical expenses, among other things.
Childcare Statements
Specifically for self-employed taxpayers, deductible expenses can include everything from home office costs to internet bills. Though, there are parameters around these. You’ll definitely want to collect itemized receipts, invoices, and mileage logs with your gathered tax documents. Every dollar documented is a dollar you could save.
Personal Information
Consider what life events you went through in 2024. Did you get married (or unmarried)? You’ll need supporting documents for taxes on hand (marriage certificate or divorce decree). Did you grow your family? Did you move and/or sell a house? Having a child, adoption, or even full care of a relative might qualify you for credits like the Child Tax Credit.
IRS or State Correspondence
Send us any and all letters from the IRS (NEVER throw these away). This can include, but isn’t limited to notices about credits, IRS Computer Paragraph (CP) notices, audit or exam letters, or state and local tax correspondence.
If you do everything electronically, just put a folder on your desktop called “2024 Tax Documents.” Start gathering tax documents in subfolders in the above categories.
I know it might seem early to get started on this, but I promise you it’s worth it.
By starting now you’ll get your refunds faster. They are less likely delayed. AND, you get the bonus of peace of mind going into tax season.
Ready to get a head start on your taxes? Contact us!