Hello, friends and clients of Nothing But Numb3rs! With the dawn of a new year, comes the inevitability of a new tax season. But fear not! We’re here to help you navigate these waters with a handy checklist that will make your tax prep easier and less stressful.
Last Year’s Taxes
Kick start your tax prep by rounding up your federal and state returns from the previous year. Having these documents handy will help reduce errors and provide crucial information regarding carryover tax deductions and more. Consider this step as the foundation of your tax prep journey.
Social Security and/or Tax ID Numbers
Next on our list is to gather all necessary Social Security and/or Tax ID numbers. You’ll need these for yourself, your spouse, and any dependents. Remember, accuracy is key here!
IP Pin
If you, your spouse, or dependent have been issued an identity protection pin by the IRS, now is the time to dig it out. This is an essential piece of information that you’ll need for your tax filing.
Income Statements
Now, let’s talk income. From W-2 forms to diverse 1099 forms, it’s important to gather all your income statements.
- W-2 Forms: These forms report your annual wages and the amount of taxes withheld from your paycheck.
- 1099 Forms: These come in various types, such as:
- 1099 NEC – For contract work.
- 1099-MISC – Summarizes income earned through royalties or rentals.
- 1099-K – If you were paid $20k or more for goods and services via a third party, such as credit card payments, Venmo, PayPal.
- 1099-INT, 1099-DIV, 1099-R – Represents interest income, dividend income, retirement income.
Also, don’t forget to include your Social Security Income statement and Unemployment statement if applicable.
Deductions
Last but not least, it’s time to gather information for deductions. This includes:
- Mortgage statements
- Property tax statements
- Charitable contribution statements
- Cost of Medical Insurance
- Cost of Doctor’s fees, prescriptions, and all medical-related costs
- State and Local taxes
Remember, every deduction counts when it comes to reducing your overall tax liability!
As we venture into this bright new year of 2024, let’s make tax preparation a breeze. With this handy checklist, you’re well on your way to being fully prepared for the upcoming tax season. And remember, the team at Nothing But Numb3rs and JoAnna Laiscell is here to help you every step of the way.
Here’s to a prosperous 2024! Visit us at www.nothinbutnumbers.com for more information and assistance.
JoAnna Laiscell, January 2, 2024
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