Upcoming Tax Preparation Checklist for Individuals

The tax season can be a stressful time for anybody, especially if they are unorganized. There are so many papers, documents, pay stubs, and receipts to keep track of it can be difficult to locate everything a person or a business needs for tax preparation. Even in the age of electronics where this information is much easier to find it can still be a hassle. That is why it can never be too early to begin on organizing and locating everything you need to prepare your taxes. Luckily we at Nazpay have narrowed down a checklist that anybody can use when it comes time to gather the documents they need to file their taxes.

Personal Information:

You will need your social security number, or tax ID number. If you are married you will need your spouse’s full name, as well as their social security number or tax ID number.

Dependents Info:

If you have dependents on you, you will need the same information that is needed from a spouse; name, social security number/tax ID number. If your dependent is a child, you will also need childcare records as well. You will need the income of the other adults in the home as well.

Sources of income: This can be one of the more difficult areas of tax preparation.

  • If you are employed, you will need a W2 form.
  • If unemployed you will need a state tax refund form (1099-G)
  • Self-Employed will need the following: forms 1099-MISC, Schedules K-1, income records to verify amounts not reported on 1099s. Records of all expenses — check registers or credit card statements, and receipts. Business-use asset information (cost, date placed in service, etc.) for depreciation. Office in home information, if applicable. Record of estimated tax payments made (Form 1040ES).
  • Those with Rental Income will need: Records of income and expenses, Rental asset information (cost, date placed in service, etc.) for depreciation, Record of estimated tax payments made (Form 1040ES),
  • Retirees with Retirement Income require these forms: Pension/IRA/annuity income (1099-R), Traditional IRA basis (i.e. amounts you contributed to the IRA that were already taxed), Social security/RRB income (1099-SSA, RRB-1099)
  • Evidence of Savings & Investments or Dividends such as: Interest, dividend income (1099-INT, 1099-OID, 1099-DIV), Income from sales of stock or other property (1099-B, 1099-S), Dates of acquisition and records of your cost or other basis in property you sold (if basis is not reported on 1099-B), Health Savings Account and long-term care reimbursements (1099-SA or 1099-LTC), Expenses related to your investments, Record of estimated tax payments made (Form 1040ES)
  • Other Income & Losses such as Gambling income (W-2G or records showing income, as well as expense records), Jury duty records, Hobby income and expenses, Prizes and awards, Trusts, Royalty Income 1099 Misc., Any other 1099s received, Record of alimony paid/received with Ex-spouse’s name and SSN

Types of deductions: Along with sources of income, this can be another tricky area of tax preparation. In this part of your tax preparation you will need the following.

  • Home Ownership: Forms 1098 or other mortgage interest statements, Real estate and personal property tax records, Receipts for energy-saving home improvements, All other 1098 series forms
  • Charitable Donations: Cash amounts donated to houses of worship, schools, other charitable organizations, Records of non-cash charitable donations ,Amounts of miles driven for charitable or medical purposes, Medical Expenses Amounts paid for healthcare insurance and to doctors, dentists, hospitals
  • Health Insurance: Form 1095-A if you enrolled in an insurance plan through the Marketplace (Exchange) Form 1095-B and/or 1095-C if you had insurance coverage through any other source (i.e . an employer, insurance company, government health plan such as Medicare, Medicaid, CHIP, TRICARE, VA, etc.) Marketplace exemption certificate (ECN) if you applied for and received an exemption from the Marketplace (Exchange)
  • Childcare Expenses: Fees paid to a licensed day care center or family day care for care of an infant or preschooler. Wages paid to a baby-sitter.
  • Educational Expenses Forms 1098-T from educational institutions, Receipts that itemize qualified educational expenses Records of any scholarships or fellowships you received Form1098-E if you paid student loan interest,
  • Job Expenses & Tax Prep Fees Employment related vehicle expenses (tolls, mileage, gas, maintenance, license, property tax, interest expense, parking), Receipts for classroom expenses (for educators in grades K-12), Employment-related expenses (dues, publications, tools, uniform cost and cleaning, travel), Job-hunting expenses Record of moving expenses not reimbursed by employer Amount paid for preparation of last year’s tax return State & Local Taxes or Sales Tax Amount of state/local income tax paid (other than wage withholding), or amount of state and local sales tax paid Invoice showing amount of vehicle sales tax paid.

Using this guide will make tax preparation easier for anybody. For all other needs of tax preparation, visit Nazpay.

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