Tax Prep Checklist: Documents To Gather Before Filing

Remedying excess contributions is important, because if you have too much in those accounts on April 18, you’ll have to pay a six percent tax penalty on the extra money plus the interest it accrued. So simply get a withdrawal request form from your financial institution, and request any necessary distributions from your accounts before April 18 to avoid any tax penalties. The Schedule C checklist in Excel format is something a lot of clients request from us. While we are currently unable to directly share XLS files on our website, we have a great checklist for your small business. You can save this list or copy it to an Excel document per your preference. This checklist is your trusty sidekick, ensuring you’re armed and ready to face the business tax battlefield with confidence.

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• We strongly suggest that you prepare to prepare your income tax returns.
• If any of these dates fall on a weekend or holiday, returns and payments are due the following business day.
• Form 1098-T if tuition was paid to an educational institution, or if a scholarship was received.
• You can even download a free Excel file (see bottom of the post) that has all the items on the list to help you stay organized.
• This small business tax preparation checklist can help save precious time you’d be spending navigating complex state tax, sales tax, and employment issues, so you can put that time back into your business.

Benjamin Franklin famously said that «nothing can be said to be certain, except death and taxes.» In New Mexico, if you can avoid the former until you’re 100, you’ll never have to deal with the latter again. New Mexico exempts its resident centenarians from state taxes, figuring that after 100 years they’ve paid their fair share in taxes. Learn this and other fun facts while you’re procrastinating in our Tax Prep Checklist Template. The standard child tax credit is worth up to $2,000 per child for tax year 2023.

• Be prepared to tailor the tax prep checklist to your situation.
• The IRS won’t accept your deduction claim without Form 1098-T, which shows your education transactions.
• Impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
• This reduces the time spent on manual data entry and minimizes the chance of transcription errors.
• For a full list of which goods and services excise taxes may apply, refer to the excise tax overview page on the IRS website.
• Our guide serves as a valuable resource, offering printable tax preparation checklists for both individuals and businesses that seamlessly integrate with Excel or Google Sheets.

Key IRS Tax Forms, Schedules and Publications for 2024

• As a small business owner, you’ve got plenty on your plate.
• Get the right tax solution to resolve tax debt ahead of time with year-round tax assistance.
• Mortgage interest statement (Form 1098) and property taxes paid.
• Plus, if you’re using tax software to file, many providers can upload your prior-year return to save you time from manually keying in your information.
• Unlike C Corporations, businesses like sole proprietorships, partnerships, and S corporations pay income taxes individually.

If you use a program or app to keep track of your finances, print or download a report of your transactions for the tax year (e.g. 2023). This will make your tax preparation much easier, and helps you clearly see where your money goes each year. Spreadsheet software allows you to automate certain calculations, reducing the likelihood tax preparation checklist excel of manual errors in your tax preparation. Formulas and functions can be applied to automatically calculate totals, percentages, and other financial metrics, improving accuracy. Your personal information tells the IRS and state taxing authority who’s filing a return, where to contact you, and deposit your tax refund.

Make any necessary “removal of excess contributions”

We recognize the significance of organization and efficiency in tax filing, and we recommend harnessing the power of tax templates and spreadsheet software to optimize your preparation checklist. The three key advantages we emphasize—organization, automation, and time savings—highlight the efficiency gains that come with adopting these tools. These aren’t strictly necessary, but they’re good refreshers of what you filed last year and the documents you used. Plus, if you’re using tax software to file, many providers can upload your prior-year return to save you time from manually keying in your information.

Gather the needed business tax return documents

Tax laws and regulations are complex and subject to change; you should consult with a professional tax advisor, financial planner, or attorney for advice specific to your individual circumstances. The author and Simplicity Financial disclaim any liability for any errors or omissions in the information provided or for any actions taken in reliance on this information. Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation for individuals and small businesses.

Credit Cards

In the United States today, the documents you’ll require for tax preparation depend on your unique situation. In order to best prepare for your tax appointment with an accountant or for filing your own taxes, H&R Block has created a checklist to help you know what forms to bring. You can deduct various other taxes, including either state and local income tax or sales taxes (up to $10,000, including property taxes). You don’t need receipts for the sales tax; the IRS provides tables with average amounts you can claim. The tax on a major purchase, however, can be added to the table amount, so keep those receipts. Note that state income taxes paid should be on your W-2, but remember to add any estimated state taxes you paid during the year.

You can also use this time leading up to tax day to make any necessary removal of excess contributions if you contributed too much. Of course not all of these documents will apply to every individual, so look over the list carefully and highlight what you think you’ll need. So, round up all of the following documents and organize them by section for easy access and review when you finally sit down to do your taxes. The IRS needs to know exactly who’s filing and who is covered in your tax return. To do this, you will need Social Security numbers and dates of birth for you, your spouse and dependents. Spreadsheet software allows for easy data entry and manipulation.

Tax Templates Free Your Time

Her work has appeared in Business Insider and The New York Times. Janet has been nominated as a top Woman in Accounting by Practice Ignition and honored as a Top 100 Innovative Women in Tax by Canopy Tax. Tax credits are a dollar-for-dollar reduction in the amount of tax you owe. Generally, you’ll need the following documentation to claim potentially valuable tax credits. We provide third-party links as a convenience and for informational purposes only.

Should I Keep These Tax Documents After I File My Return?

Understand which claims they’re for to ensure you aren’t missing any opportunities to maximize your tax return. Beyond the tax prep checklist, you’ll also find a table of 2022 tax brackets with a marginal tax rate estimator. Because the federal income tax system is progressive, meaning that as the amount of taxable income you have goes up, so do your income tax rates. Most of us have income taxes withheld from our paychecks to cover our tax liabilities; that amount is on our W-2 forms. But if you made federal estimated tax payments during the year, have this amount handy, too. Whether you hire a professional or do it yourself, you’ll need certain information and documentation to file your tax return.