Checklist for Tax Season 2023

This year, use our handy tax preparation checklist for 2023 to make tax preparation easier. We will let you know what tax documents you need to know to organize. Tax season can be stressful, but we are here to assist you.

Tax season is rapidly approaching. Many people are choosing to use a professional tax return preparer as they begin to gather their documents and receipts in preparation for filing a tax return.

A paid tax return preparer can be anyone who has an IRS Preparer Tax Identification Number. Tax return preparers, on the other hand, have varying levels of skill, education, and expertise. It is critical to choose a tax return preparer wisely because taxpayers are ultimately responsible for all information on their return, regardless of who prepares it for them.

Tax Checklist for W-2 Employees

If your employer automatically deducts taxes from your paycheck, you are most likely a W-2 employee. Your employer should provide you the W-2 statement at the end of the year.

Forms You Should Have:

• Forms W-2
• Forms 1099 issued by banks, issuing agencies, and other payers, such as unemployment compensation, dividends, and distributions from a pension, annuity, or retirement plan.
• If you worked in the gig economy, you may have received a 1099-K, 1099-MISC, W-2, or other income statement.
• If you received interest, complete Form 1099-INT.
• Other income me documents and virtual currency transaction records
• To settle advanced Premium Tax Credits for Marketplace coverage, use Form 1095-A, Health Insurance Marketplace Statement.

1099 Employee Tax Checklist

Freelancers, contractors, and self-employed individuals will not receive a W-2 form to file. In this case, it is critical to deduct taxes directly from your income. Most 1099 employees file their taxes quarterly, but if you didn’t, here’s what you should round up if you’re preparing your taxes as a 1099 employee.

Forms You Should Have:

• Form 1040, There are some variations of this form, such as the 1040-SR for seniors.
• Deductions, You can claim a variety of business deductions as a self-employed individual.
• Schedule C, you must submit this form in addition to your Form 1040.
• Investments

Tax Credits

Tax credits are payments made directly to you that you can claim to offset your tax liability. If you do not owe taxes, some of them are refundable, which means they may be included in your tax refund. See the items listed below for any forms or information you may need to claim certain tax credits.

Forms:

• Child Tax Credit – Dependent Name, and SSN
• Address of the Child Care Provider, I.D. Number, Amounts Paid for the Child and Dependent Care Credit
• Earned Income Tax Credit (EITC)
• Adoption Expense Information
• Foreign Taxes paid
• First Time Home Buyer Tax Credit

Medical Expenses

All taxpayers can deduct qualified unreimbursed medical care expenses that exceed 7.5% of their adjusted gross income, according to the IRS.

Forms:

• Family Medical Expenses
• Medical, Health Insurance Paid (1095-A)
• Prescription Medicines and Drugs
• Doctor and Dentist Payments
• Tax Deductible Miles Traveled for Medical Purposes
• Hospital and Healthcare Payments

Homeowners Deductions

To take advantage of tax deductions for homeowners, make sure the total amount of your itemized deductions exceeds the standard deduction.

Forms:

• Home Mortgage Interest from Form 1098
• Home Second Mortgage Interest Paid
• Real Estate Taxes Paid
• Moving Expenses

Charitable Giving Deductions

You can deduct charitable contributions made to qualified organizations if you itemize your deductions.

Forms:

• Charitable Cash Contributions
• Non-cash Contributions to Charities
• Unreimbursed Expenses Related to Volunteer Work
• Tax Deductible Mileage for Volunteer Purposes

Retirement and Investments

Forms:

• Investment Expenses
• IRA Contributions
• HSA, FSA Contributions

Tax Estimate Payments

You must report certain estimated tax payments on your tax return if you make them. Keep track of these payments and use the forms to collect receipts or other documentation.

• Estimated Tax Payments
• Last Year’s Tax Return Over-Payment
• Off Highway Fuel Taxes

Other Forms:

• Copy of Last Year’s Tax Return
• Social Security Numbers
• Educational Expenses
• Dependents’ Names and Social Security NumbersDependents’ Post High School Educational Expenses
• Child Care Expenses for Each Dependent
• Prior Year Adjusted Gross Income (AGI)