Preparing for tax season can be a lot easier with a bit of organization and planning. If you’re using an accounting firm to file your 1040 tax return, here’s a checklist to help you ensure you have everything in order:

Gather Personal Information and Provide Changes to Your Tax Preparer

Start by collecting and updating key personal information. This ensures your tax preparer has the details needed to file your return accurately.

• Social Security Numbers: For yourself, your spouse, and any dependents.
• Birthdates: For everyone listed on your tax return.
• Bank Account Details: For direct deposit of any refund.
• Address Changes
• Legal Name Changes: including whether updated with the Social Security Administration.
• CP01A Notice with Your New IRS Identity Protection PIN – if you participate in the IRS Identity Protection program

Collect Income Documentation

Accurate income reporting is essential for your tax return. Gather all forms and records that show your earnings throughout the year.

• W-2 Forms: From your employers.
• 1099 Forms: For freelance, contract work, interest, dividends, retirement distributions, unemployment compensation, consolidated tax information for brokerage accounts, etc.
• 1099-K: For business or self-employment income payments from payment settlement and third-party network entities like Amazon, PayPal, and Venmo.
• K-1 Forms: For income from partnerships, S corporations, estates, or trusts.
• Other Income Records: Such as rental income, alimony received, digital asset transactions, or any miscellaneous income.
• 1095-A, Health Insurance Marketplace Statement: for reconciling advance payments with Premium Tax Credits

Gather Deduction and Credit Documentation

To maximize your tax savings, collect documents for deductions and credits you qualify for. These records can reduce your taxable income or increase your refund.

• Mortgage Interest Statement (Form 1098): From your lender.
• Property Tax Statements: For real estate taxes paid.
• Charitable Contributions: Receipts or statements for donations.
• Medical Expenses: Records of medical and dental expenses, including insurance premiums.
• Education Costs: Form 1098-T for tuition, and receipts for other education-related expenses.
• Retirement Contributions: Statements for IRA, 401(k), or other retirement accounts.
• Childcare Costs: Records and provider information for dependent care expenses.
• Estimated Tax Payments: List of all estimated tax payments made with dates paid.

Review Previous Year’s Tax Return

• Copy of Last Year’s Return: To review previous deductions, credits, and to provide a basis for comparisons. If you are filing with the same company, they most likely will have a copy of your previous year’s return.

Organize and Label Documents

Keeping your documents well-organized can save time and make the filing process smoother for you and your preparer.

• Create a Tax Folder: Keep all documents in one place.
• Sort by Category: Income, deductions, credits, etc., to make the process smoother for your accountant.

Update Your Information

• Address Changes: Ensure that your address is up to date with the IRS and other relevant institutions.
• Marital Status: Update if there has been a change in marital status or dependents.

Compile Business Expenses (if applicable)

If you’re self-employed or own a business, gathering your expense records is crucial for claiming deductions.

• Receipts and Invoices: For any business expenses if you are self-employed or own a business.
• Mileage Logs: If claiming vehicle expenses for business purposes.

Check for Tax Law Changes

Tax laws change frequently. Stay informed about new regulations that might impact your return.

• Recent Tax Law Changes: Stay informed about any recent changes in tax laws that might affect your return. Your accountant should be up to date, but it’s good to have a basic understanding.

Review and Ask Questions

• Review Your Tax Return: Before it is filed, make sure to review it for accuracy and ask your accountant any questions you have about deductions, credits, or the tax impact of any life changes.
• Review Your Tax Withholdings: Evaluate whether you need to adjust your federal, state, or local tax withholdings if you have a significant balance owed or refund due.

Stay Informed About Deadlines

• Know the Filing Deadline: Ensure you understand the deadlines for both filing your tax return and paying any taxes owed to avoid penalties and interest.

By following this checklist, you’ll help ensure that you and your accounting firm have everything needed to complete your tax return efficiently and accurately.