With tax season coming up, it’s important to make sure you’re prepared. That’s why we’ve created this handy Income Tax Prep Checklist to help you get organized. Simply print it out and follow along with the steps below!
Step 1: Gather Your Information
Before you begin preparing your tax return, you’ll need to gather all of the necessary information. This includes:
- Your social security number or tax ID number
- Your W-2 form from your employer(s)
- Your 1099 form(s) if you worked as an independent contractor or freelancer
- Your 1098 form(s) if you paid mortgage interest or student loan interest
- Any other relevant documents, such as investment income statements or charitable donation receipts
Step 2: Organize Your Documents
Once you have all of your documents in hand, it’s important to keep them organized. Start by separating them into categories, such as income, deductions, and credits. Then, organize each category in chronological order or by type, depending on what works best for you.
Step 3: Determine Your Filing Status
Your filing status determines the tax rates and standard deduction you’re eligible for. There are five filing statuses:
- Single
- Married filing jointly
- Married filing separately
- Head of household
- Qualifying widow(er) with dependent child
Determine which status applies to you based on your marital status and household situation.
Step 4: Choose Your Tax Software or Tax Preparer
Once you have all of your documents organized and your filing status determined, you can decide whether to use tax software or hire a tax preparer. Tax software is a great option for those who prefer to do their taxes themselves and have a straightforward tax situation. A tax preparer is a better option for those with more complex tax situations or those who prefer to have a professional take care of their taxes.
Step 5: Complete Your Tax Return
Whether you’re using tax software or a tax preparer, make sure to review your tax return carefully before submitting it. Double-check all of your information and calculations, and make sure you’ve included all of your income and deductions.
With these steps and our Income Tax Prep Checklist, you’ll be well on your way to a stress-free tax season. Happy filing!
