Whether you’re preparing taxes yourself or seeking assistance from a professional, having all the necessary documents at hand is paramount. Try to keep all the documents in one location as you accumulate them, such as an online or paper folder, for easy access and organization. When it comes to filing a tax return, you don’t want to miss providing any information and causing errors or delays. You can also streamline the preparation process and help ensure that you take advantage of all available tax deductions and credits.
Here’s a guide to the essential items to collect before diving into your tax preparation.1
Prior year tax return
- Having your tax return from last year on hand will remind you of certain elections made, income reported, deductions taken, depreciation schedules, carry overs, etc. If you e-filed and didn’t print a copy, retrieve your PIN to access the return.
Income
- W-2 tax forms from your employer(s)
- Equity compensation arrangements including 83(b) elections, basis information, and holding periods
- 1099-INT, 1099-DIV, 1099-B and/or 1099 consolidated brokerage statements showing investment interest, dividends, and capital gains
- 1099-NEC, 1099-MISC, 1099-K, and other forms for any freelance work, contract work, or side gigs
- 1099-R statements for retirement account distributions (such as 401(k), IRA)
- Records of any qualified charitable distribution (QCD) made from your IRA as these amounts will need to be used to reduce the 1099-R distribution amount
- SSA-1099 for Social Security or RRB-1099 for railroad benefits
- Income from rental properties longer than 14 days during the year
- Schedule K-1 from partnerships or S corporations, including many oil and gas master limited partnership interests
- Profit and loss statements for self-employed individuals — this includes all business-related expenses, including receipts for supplies, equipment, and travel
- Amount of alimony received and Social Security number of ex-spouse if divorced prior to 2019 (when they were deductible by the payor and included in the receiver’s income).
Deductions
- Receipts for charitable donations
- Medical expenses, including receipts for health care services and prescriptions
- Form 1098 for mortgage interest and real estate tax
- Property tax statements if not included in Form 1098
- Educational expenses, such as tuition payments and student loan interest on 1098-T
- Contributions to an IRA or a self-employed retirement plan
- Documentation of health savings account (HSA) contributions and withdrawals
Homeownership
- Closing statements for any homes bought or sold during the tax year
- Records of home improvements that may qualify for tax credits or deductions
- Energy-efficient upgrades documentation (such as receipts for electric vehicles and energy-efficient appliances)
Health insurance
- Form 1095-A, 1095-B, or 1095-C, which provide information about health insurance coverage
Miscellaneous
- Records of estimated tax payments made during the year
- Social Security numbers for yourself, your spouse, and any dependents
- Date of birth for all individuals listed on the tax return
- Bank account information for direct deposit of any tax refunds
Following this guide can help you with collecting the essential items mentioned but there may be other documents that are pertinent to your personal situation.
Did you know that Mercer Advisors prepares tax returns for clients? If you’re interested in learning more, contact your wealth advisor.
Want to know more about how we can coordinate tax planning across your investment management, estate, and charitable giving activities to manage — and potentially minimize — your total tax obligations? If you’re not a Mercer Advisors client, let’s talk.
1 “Gather your documents,” IRS, Aug. 16, 2024.
