Ensuring you have all the necessary paperwork is the first step to successfully filing your 2024 tax return. Whether you’re filing on your own or working with a tax professional, gathering the correct documents can save you time and help avoid costly mistakes. We created a list of questions to ask yourself when you do gather the documentation. These are all Yes or No questions, so if the question is not applicable, move to the next question.
Income-Related Documents:
- Did you earn wages as an employee? Collect Form(s) W-2, including all copies (showing all boxes, states, localities, etc.).
- Did you receive or recognize equity compensation (including Section 83(b) elections)? Collect Form(s) 3921 and/or 3922 and check for adjustments needed (e.g., cost basis, employee discounts, holding period requirements).
- Did you earn income as a self-employed individual? Collect Form(s) 1099-NEC, 1099-MISC, 1099-K, etc., and gather documentation of all income and expenses.
- Did you have taxable investment accounts and/or interest-bearing accounts? Collect Form(s) 1099-B, 1099-DIV, 1099-INT, 1099 Consolidated or Composite, “Corrected 1099s,” and verify cost basis and holding period details for investment sales.
- Did you make withdrawals from a retirement plan or insurance policy (including rollovers, Roth conversions, etc.)? Collect Form(s) 1099-R and inform your tax preparer of special circumstances (e.g., after-tax basis, rollovers, penalty exceptions, charitable donations, insurance exchanges).
- Did you receive retirement income (e.g., pension, annuity, Social Security, Railroad Retirement Board, etc.)? Collect Form(s) 1099-R, SSA-1099, RRB-1099, etc.
- Did you sell your home (or other real estate)? Gather Form(s) 1099-S (if applicable) and documentation of cost basis (e.g., purchase and sale statements, improvements, depreciation), and check for applicable exclusions.
- Did you receive alimony (excluding child support, property settlements) from a divorce finalized before 01/01/2019? Gather relevant details (e.g., amount received, date of agreement) and provide your Social Security number to the payer.
- Did you receive any other sources of income (e.g., income from IRS Schedule 1 Part 1)? Gather relevant tax forms or details.
Deduction-Related Documents:
- Are you self-employed? Gather documentation of deductible business expenses (e.g., home office use, vehicle use, health insurance premiums, long-term care premiums) and check eligibility for the QBI deduction.
- Did you contribute to retirement plans or tax-advantaged accounts (e.g., 401(k), IRA, Roth IRA, HSA, 529)? Collect documentation of contributions and ensure any excess contributions are removed by the deadline to avoid penalties.
- Did you make donations to a qualifying charity (cash, non-cash property, stock)? Gather details and valuations for non-cash property donations.
- Did you pay significant medical expenses? Gather relevant details (e.g., amounts paid, reimbursements) while considering limitations (e.g., 7.5% AGI floor for deductions).
- Did you pay state or local taxes (e.g., income, sales, property)? Gather amounts paid and consider SALT limitations (up to $10,000).
- Did you pay mortgage interest or home equity loan/line of credit interest? Collect Form(s) 1098 and relevant details (e.g., interest paid, origination dates), keeping in mind deduction limitations (e.g., funds must improve your home).
- Did you pay interest on qualified student loans? Collect Form(s) 1098-E or other documentation showing interest paid.
- Did you pay alimony from a divorce finalized before 01/01/2019? Gather relevant details (e.g., amount paid, date of agreement) and ensure you have the recipient’s Social Security number.
- Are there any other deductions applicable to you (e.g., IRS Schedule 1 Part 2)? Gather relevant details.
Credit-Related Documents:
- Do you have children (including adopted) or other dependents? Collect documentation to establish dependency (e.g., age, relationship, support, custody agreements, Form(s) 8332) and substantiate costs paid (e.g., childcare, education, adoption expenses).
- Did you or your dependents incur qualifying education expenses? Collect Form(s) 1098-T, Form(s) 1099-Q (for 529 distributions), and receipts.
- Did you buy an electric vehicle or make energy-efficient home improvements? Collect relevant documentation (e.g., receipts, certifications).
- Did you or your family obtain health insurance through the Marketplace? Gather Form(s) 1095-A and consider potential premium tax credit repayment or strategies to reduce MAGI (e.g., deductible IRA contributions).
- Did you make estimated tax payments or apply a prior year’s overpayment toward this year’s tax liability? Gather documentation of payments made (e.g., amounts, dates, payer details).
- Are there other tax credits that apply to your situation (e.g., foreign earned income, AMT carryforward)? Gather relevant details.
Other Considerations:
- Did you make a gift exceeding the annual gift exclusion amount ($18,000 in 2024)? Be mindful of gift tax reporting requirements (e.g., Form 709) and possible elections (e.g., gift-splitting, 529 5-year averaging).
- Did you make Qualified Charitable Distributions (QCDs) from an IRA? Ensure these donations are excluded from taxable income (if eligible) and are not reported on Form(s) 1099-R.
- Did you make non-deductible Traditional IRA contributions (e.g., for Backdoor Roth purposes)? Report all contributions properly and document year-end Traditional IRA values.
- Do you own rental property? Review property values (compared to land value) to claim depreciation deductions, and gather details of income, expenses, and rental activity.
- Do you own or co-own a business taxed as an S-Corporation? Finalize additional business tax returns (e.g., Form(s) 1120-S, 1065) before personal tax filing or consider filing extensions if needed.
- Do you have a Solo 401(k) with a balance exceeding $250,000 as of 12/31/2024? File Form 5500-EZ by 07/31/2025 (for calendar year plans).
- Do you have any state-specific tax issues to consider? Gather relevant details.