Filing your taxes goes much more smoothly when you have everything you need before you start. Missing a single form can delay your return, lead to errors or cause you to miss deductions and credits you deserve. Taking an hour to gather your documents in advance can save you time, stress and money.
Start with the basics. You'll need Social Security numbers or taxpayer identification numbers for yourself, your spouse and any dependents, along with dates of birth. Have a copy of last year's tax return handy, since it's useful for reference, and bring your bank account and routing numbers if you want your refund deposited directly.
Income documents
Collect every form that reports income. Employees receive Form W-2 from each employer. Freelancers and independent contractors may receive Form 1099-NEC or 1099-K. Interest and dividends are reported on Forms 1099-INT and 1099-DIV, investment sales on Form 1099-B, and retirement distributions on Form 1099-R. Social Security benefits are reported on Form SSA-1099, and unemployment compensation on Form 1099-G.
If you're self-employed, gather records of all business income, including payments that may not appear on a 1099, along with your business expenses. Rental property owners should collect rent records and expenses for repairs, insurance, property taxes and mortgage interest.
Next, gather documents for deductions and credits. Homeowners should have Form 1098 for mortgage interest and records of property taxes paid. Students or parents may need Form 1098-T for tuition and Form 1098-E for student loan interest. Keep receipts for charitable donations, records of child and dependent care expenses and documents for any health savings account contributions.
Health coverage documents matter too. If you purchased insurance through the Health Insurance Marketplace, you'll need Form 1095-A to reconcile any premium tax credit. Records of estimated tax payments you made during the year are also important, since they count toward what you've already paid.
Before you hit submit
Double-check names, Social Security numbers and bank details, since small errors can delay a return. If the IRS has issued you an Identity Protection PIN, have it ready. And don't forget your state return: Arkansas residents generally file a state return alongside their federal return.
The tax advisors at Tax Pay Advisor help individuals and families in Little Rock and across Arkansas organize their documents and file accurate returns on time. Contact us to schedule your tax appointment.