Tax Time: Preparing to Prepare

*This publication is only intended to be used for general informational purposes. Consult a tax professional for the most current data and/or personal advice.

Compiling everything you need in order to prepare your federal income taxes is often a bigger challenge than actually doing them. Though the process of locating forms and documents may feel overwhelming, it really just requires knowing what you need, and an organized approach to hunting and gathering.

Obtain the Right Tax Form
Make sure you get the right tax form for your individual situation. Many people will use the same one they used for the previous year, but if your circumstances have changed, you may need to use a different form. The options for most employed individuals are the 1040EZ, the 1040A, and the 1040. To know which is right for you, visit the IRS website at www.irs.gov.

Gather Personal Identification Information
Of course you will need to know your own Social Security Number, but you may need to know a few others as well. These may include those of your spouse, children, childcare provider, and anyone to whom you pay alimony.

Gather Income Information 
Your next task is to collect all of your income information. Depending on where you derived your income, you will need documents for:

  • Wages and Salaries
  • Interest Received
  • Dividends
  • Business Income
  • Capital Gains and Losses
  • Pensions and Annuities
  • Retirement Plans
  • Rental Income and Expenses
  • Farming and Fishing Income
  • Earnings for Clergy
  • Unemployment Compensation
  • Gambling Income and Losses
  • Bartering Income
  • Scholarships, Fellowship Grants and Other Grants
  • Social Security and Equivalent Railroad Retirement Benefits
  • Passive Activities – Losses and Credits
  • Stock Options
  • Traders in Securities
  • Receipt of Stock in a Demutualization
  • Canceled Debt
  • Form 1099-A (Acquisition or Abandonment of Secured Property) and Form 1099-C (Cancellation of Debt)

Collect Deduction/Adjustment Information 
If you plan to itemize your deductions or adjust your gross income, make sure you account for everything. Depending on what you are able to deduct/adjust, you’ll need to have records for such outgoing expenditures as:

  • Mortgage interest
  • Real estate taxes
  • Rent
  • IRA or other retirement plan contributions
  • Miscellaneous investment related expenses (such as safe deposit box fees if used to store investment documents and computer depreciation if used to track assets)
  • Early investment withdrawal penalties
  • Medical/dental bills
  • Moving costs
  • Charitable donations and volunteer expenses
  • Auto loans and leases for vehicles used for business
  • Student loan interest
  • Alimony
  • Unreimbursed job-related expenses (travel, uniforms, union dues, education)
  • Job-hunting expenses
  • Child care expenses
  • Adoption expenses
  • Tax return preparation expenses

If you have to scavenge for each necessary item, make a commitment to keep good records from this point forward. It will make this time next year a much less demanding experience.

Revised February 2018.

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