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Tax season is officially upon us. Here's a comprehensive list of the things you'll need to file your upcoming return.With the April 18 tax filing deadline rapidly approaching for individuals, now's the time to start going through your documents and getting your paperwork in order. Now you may be wondering: What do I need to file my tax return? One thing you should know is that regardless of whether you're filing your own taxes or paying a tax preparer to do them for you, you're still the one responsible for providing the necessary information to submit a return. Here's a comprehensive list of the tax prep items you'll need for your individual tax filing.
Tax deadline for some business entities are as early as March 15, please see tax organizers for a list of required documents and set up an appointment with your tax advisor as early as possible to allow time to review business activities during the year.
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Individuals Tax Return Preparation Checklist
1. Choose a tax preparer.
If you don’t yet have a tax preparer, now’s the time to find one. Be sure that the person you choose has a Preparer Tax Identification Number (PTIN) showing that he or she is authorized to prepare federal income tax returns. It's very important that you choose the right tax preparer, do not make decision only based on fees. Make sure the tax preparer is experienced and knowledgeable so you are not missing any eligible tax deductions and credits.
2. Schedule an appointment with your tax preparer.
The sooner you meet with your preparer, the sooner you can begin the process (even if you get an extension, as discussed later). It is especially important to act promptly if you anticipate a refund so you can receive your money promptly. If you wait too long to schedule an appointment, you may not get to see your preparer before April 17, which could mean you won’t be advised of actions that can still lower your current year tax bill, such as your eligibility for making deductible contributions to IRAs and health savings accounts for current year.
3. Gather your tax return information
By the end of January, you should have received various types of information returns that you need. For each form, verify that the information matches your own records.
Here are some of the most common forms: (Note: This is not a complete list; the IRS has information on the many other types of information returns you may need. Please refer to our tax organizers section for detailed documents request list.
4. Get your receipts/supporting documents together.
Which ones you need depends on whether you choose to itemize your personal deductions instead of claiming the standard deduction. You can choose to itemize if this produces the greater write-off. Unfortunately, the only way to know for sure is to determine the amount of your itemized deductions and compare them with your standard deduction amount.
For itemizing, get receipts together now throughout the year to retain receipts for various deductible expenses. Look for receipts for medical costs not covered by insurance or reimbursed by any other health plan (e.g., a flexible spending account or health savings account), property taxes, and job-related and investment-related expenses.
If you have business income and expenses to report on Schedule C, you’ll need to share your books and records (e.g., QuickBooks or other accounting system; receipts for expenses; bank and credit card statements). The more organized you can be, the less time it will take your preparer, which translates into lower fees for his/her service.
5. Keep a list of personal information.
Write down personal information and other information (e.g., addresses of vacation homes and rental property; dates you moved; information about property you bought and sold, including dates, what you originally paid, what you received on the sale and expenses you had) needed to complete your return.
6. Decide whether to ask for a filing extension.
If you need more time to complete all of these tasks, you can request a filing extension to October 15. This will avoid any late-filing penalty, but be sure to pay what you think you’ll owe to minimize or avoid any late-payment penalty. There’s no extension beyond April 18 for paying the tax that is due.
If you don’t yet have a tax preparer, now’s the time to find one. Be sure that the person you choose has a Preparer Tax Identification Number (PTIN) showing that he or she is authorized to prepare federal income tax returns. It's very important that you choose the right tax preparer, do not make decision only based on fees. Make sure the tax preparer is experienced and knowledgeable so you are not missing any eligible tax deductions and credits.
2. Schedule an appointment with your tax preparer.
The sooner you meet with your preparer, the sooner you can begin the process (even if you get an extension, as discussed later). It is especially important to act promptly if you anticipate a refund so you can receive your money promptly. If you wait too long to schedule an appointment, you may not get to see your preparer before April 17, which could mean you won’t be advised of actions that can still lower your current year tax bill, such as your eligibility for making deductible contributions to IRAs and health savings accounts for current year.
3. Gather your tax return information
By the end of January, you should have received various types of information returns that you need. For each form, verify that the information matches your own records.
Here are some of the most common forms: (Note: This is not a complete list; the IRS has information on the many other types of information returns you may need. Please refer to our tax organizers section for detailed documents request list.
- Form W-2 if you have a job
- Form SSA-1099 if you received Social Security benefits
- Various 1099s to report income such as cancellation of debt (1099-C), dividends (1099-D), interest (1099-INT), and nonemployee compensation paid to independent contractors (1099-MISC). Note: Form 1099-B, which reports gains and losses on securities transactions, is not due to you until February 16, 2016.
- New Form 1095-A to report information from the government Marketplace from which you purchased health coverage
- Various 1098s reporting mortgage interest (1098), student loan interest (1098-E) and tuition payments (1098-T)
- Form W-2Gs for certain gambling winnings
- Schedule K-1s from entities in which you have an ownership interest (e.g., S corporations, partnerships, limited liability companies, trusts or estates). Note: You may not have received them yet; they could come as late as September 15, so check with the entity.
4. Get your receipts/supporting documents together.
Which ones you need depends on whether you choose to itemize your personal deductions instead of claiming the standard deduction. You can choose to itemize if this produces the greater write-off. Unfortunately, the only way to know for sure is to determine the amount of your itemized deductions and compare them with your standard deduction amount.
For itemizing, get receipts together now throughout the year to retain receipts for various deductible expenses. Look for receipts for medical costs not covered by insurance or reimbursed by any other health plan (e.g., a flexible spending account or health savings account), property taxes, and job-related and investment-related expenses.
If you have business income and expenses to report on Schedule C, you’ll need to share your books and records (e.g., QuickBooks or other accounting system; receipts for expenses; bank and credit card statements). The more organized you can be, the less time it will take your preparer, which translates into lower fees for his/her service.
5. Keep a list of personal information.
Write down personal information and other information (e.g., addresses of vacation homes and rental property; dates you moved; information about property you bought and sold, including dates, what you originally paid, what you received on the sale and expenses you had) needed to complete your return.
6. Decide whether to ask for a filing extension.
If you need more time to complete all of these tasks, you can request a filing extension to October 15. This will avoid any late-filing penalty, but be sure to pay what you think you’ll owe to minimize or avoid any late-payment penalty. There’s no extension beyond April 18 for paying the tax that is due.
The Bottom Line
Start early doing prep work for your income tax so you’ll have a successful tax return experience. Ideally, you will have been gathering and organizing your receipts all year. Most of all, these 10 preparation steps will ensure that you’re not missing out on any tax benefits.
Start early doing prep work for your income tax so you’ll have a successful tax return experience. Ideally, you will have been gathering and organizing your receipts all year. Most of all, these 10 preparation steps will ensure that you’re not missing out on any tax benefits.
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