Tax season can be a stressful time of the year for many taxpayers! However, there are steps that you can take to prepare and make tax time less stressful for you and your tax preparer- as follows:
- Make a folder labelled “2024 Tax Information” to gather all tax documents as you receive them so that they are all together in one place.
- Download any tax documents such as unemployment 1099-G forms or other forms that are only available online such as some investment 1099s and tuition form 1098-Ts – as soon as they are available.
- Total all of your out -of- pocket medical expenses for you, your spouse, and your dependent children for the year.
- Gather any donation receipts and request any donation summaries or donation acknowledgement forms from charitable donations made in 2024.
- If you have a business, total your income for the year and summarize and categorize your business expenses for the year.
- If you have a rental property, total the rent received, the days rented, and personal use days and summarize and categorize the rental expenses for year.
- If you sold your home, vacation home, or rental property during the year, gather the closing document for the sale and the original cost of the property plus improvements.
- If you had a new baby this year, make sure that you have obtained a social security number for the child in order for you to claim the child as a dependent on your tax return.
- If you are a divorced custodial parent who is releasing the right to claim a child’s exemption – make sure you complete Form 8332 to be filed with the noncustodial parent’s tax return.
- If you get your taxes professionally prepared – send your tax information and/or make your tax appointment as soon as possible to avoid the need for an extension of time to file!