Tax season can feel overwhelming, but staying organized can make all the difference. Before filing your taxes, it’s crucial to gather the right documents. Here’s a quick guide to some of the most important and common forms you’ll need to get started:

 

1. W-2 Forms (Wage and Tax Statement)

If you’re an employee, your employer will provide a W-2 detailing your annual earnings and the taxes withheld from your paycheck. This form is the cornerstone of most tax returns and should arrive by the end of January.

 

2. 1099 Forms

These forms report income earned outside of regular employment. There are several types:

  • 1099-NEC: For freelance or contractor income.
  • 1099-DIV: For dividends earned on investments.
  • 1099-INT: For interest earned in a savings account
  • 1099-K: For income received through third-party payment processors, like PayPal.
  • 1099-R: For distributions from retirement accounts, pensions, or annuities. This form is essential if you’ve withdrawn funds from these accounts and need to report the income.

If you’ve earned non-salaried income, look out for these forms.

 

3. 1098 Forms

These forms capture deductible expenses that can lower your tax liability:

  • 1098-T: For tuition payments and education expenses.
  • 1098-E: For student loan interest paid.
  • 1098: For mortgage interest paid.

 

4. Contribution Records

If you’ve made contributions to tax-advantaged accounts like IRAs, HSAs, or 401(k)s, keep those statements handy. They may offer valuable deductions or credits.

 

5. Receipts for Deductions and Credits

Gather proof of any deductible expenses, such as charitable donations, medical bills, or energy-efficient home upgrades. These documents ensure you can claim eligible deductions accurately.

 

6. Business Deduction

For those operating a business (small or otherwise), it is important to track income and expenses related to your business. Not only will you need to have an updated Profit & Loss statement, but you will also need to have proof of expenses (i.e. receipts) should you ever get audited. 

 

7. Last Year’s Tax Return

While not required, having last year’s return can provide a helpful reference and make the process smoother.

 

Stay Organized Year-Round

Keeping your financial documents organized throughout the year makes tax season far less stressful. Set aside a secure, dedicated folder— digital or physical—for your tax-related paperwork.

With the right preparation, filing your taxes becomes a straightforward process. If you have any questions about what documents you may or may not be receiving regarding your investment accounts, we are just a phone call away!