Preparing For The 2024 Season
Starting on January the 27th, the IRS is open for e-filing 1040 Individual Returns. This is shortly after the IRS opening the Payroll Reports for 1099-NEC, 1099-MISC and W-2 on their IRIS system since the 10th of January, and business returns capable of filing starting from Jan 15th. If your employer filed your W-2 or 1099 with the IRS, you should have all the relevant paperwork in place for filing as soon as Jan 27. There are many advantages for getting ahead of the curve, before the tax deadline arrives on April 15th, but to make it a true success and avoid any possible audits, it helps preparing for your tax preparation right now.
Preparing for Tax Season 2024: Essential Items You’ll Need
As we approach tax season for the year 2024, it's important to get organized to ensure a smooth and stress-free filing process. Whether you plan to file your taxes yourself or work with a professional, having the right documentation and materials on hand is crucial. Here’s a short comprehensive list of items you should prepare.
1. Personal Information
- Social Security Numbers (SSNs) for yourself, your spouse, and any dependents.
- Bank account information for direct deposit or withdrawal.
2. Income Documentation
- W-2 forms from employers.
- 1099 forms for any freelance income, rental income, or interest earned.
- K-1 forms from partnerships or S-corporations.
- Any other statements documenting income, such as unemployment benefits or Social Security benefits.
3. Deductions and Credits
- Receipts for deductible expenses such as medical bills, charitable donations, and mortgage interest.
- Records of educational expenses, such as 1098-T forms for tuition payments.
- Investment documentation, including brokerage statements showing dividends, interest, and gains/losses.
- Childcare expenses and related documents (e.g., provider’s tax ID).
- Records of business expenses if self-employed.
4. Health Care Information
- Form 1095-A/B/C for health insurance coverage.
- Receipts for any out-of-pocket medical expenses.
5. Real Estate and Property Records
- Closing statements for property sales or purchases.
- Property tax statements and any energy credits related to home improvements.
6. Retirement and Savings Contributions
- Documents for contributions to retirement accounts, such as 401(k)s or IRAs.
- Records of withdrawals from retirement accounts.
7. Previous Year’s Tax Return
- A copy of your 2024 tax return can provide a reference for your current year's filing and assist in consistency for certain credits or carryovers.
8. Miscellaneous Items
- Any IRS correspondence or notices from previous years.
- Access to tax preparation software or identification of a professional tax preparer.
9. Organizational Aids
- A dedicated folder or binder to keep all tax-related documents organized and easily accessible.
- A checklist to ensure all necessary items have been gathered before filing.
Conclusion
Getting prepared for tax season in 2025 doesn’t have to be overwhelming. By collecting the necessary documents and organizing them ahead of time, you’ll save yourself a lot of stress when it comes to filing. If you're uncertain about any tax-related issues or complex situations, consider consulting a tax professional for assistance. Stay informed about the latest tax laws and updates, as they can affect your filing process.
