Tax Prep Checklist [A 2024 Guide]
The tax season comes around as regularly as all the other seasons but is a lot less welcome than spring. Of course, you can always hire a professional to file your income tax return for you and you may also choose to use tax software.
But there's no escaping the fact that you need to gather a ton of information before you take the next steps. That's where a tax prep checklist can come in handy, especially if you don't know how to prepare your taxes or where to begin. In this article, you can read and download our checklist for tax return, learn how to get your refund ASAP, and how to access support.
use a checklist for tax return to prepare like a pro
If you're not sure how to prepare for taxes, our tax prep checklist is here to make it easier for you to keep track of the documents you may need to gather before you file. Keep in mind that if you're married and filing jointly, you will also need to gather your spouse's and dependents' documents.
It's a good idea to buy a bankers' box or filing cabinet so you can keep all your information in one place throughout the year. For example, you may use it to store copies of your personal documents, receipts of expenses that may be eligible for tax deductions, and your documents showing evidence of income when you receive them from your employers.
personal information
These documents are the starting point for your tax prep process and will ensure the IRS can easily process your tax return and deposit your refund:
Form 1040: the standard US individual tax return form to enter your details into
Your social security cards showing your Social Security Number, or your Tax ID Number
Your spouse’s SSN or Tax ID Number and date of birth if filing married/joint
Information about your government stimulus payments, if applicable
Your Identity Protection PIN, if one has been issued to you by the IRS
Routing and account numbers to receive your refund via direct deposit into your GHS account if you live in Broome, Chenango, or Tioga counties, NY.
dependent(s) information
If you have children or other dependents, you'll need to provide their details. Child care expenses may be eligible for tax deductions so you want to access your receipts or bank records throughout the year.
Here are the records you'll need to verify your children or dependents:
Dates of birth and SSN or Tax ID Numbers
Child care records, including the provider's Tax ID Number, if applicable
Income of dependents: if applicable
Form 8332: showing that the child’s custodial parent is releasing their right to claim the dependent to you, the non-custodial parent
income
Each year, your employer(s) will send you a document that shows how much you earned through the year and how much tax you paid. The form will clearly show whether taxes have been automatically deducted from your paycheck (often a W-2 Form) or whether you need to work out your taxes owed (often a 1099 Form).
If taxes aren't deducted from your paycheck, it's a good idea to save the percentage you may need to pay at the end of the tax year. That way, you'll have the money ready to go. Hopefully, you'll even have extra money leftover after you submit any eligible deductions or credits.
Here are the most common types of tax forms you may get from your employer or to document other sources of income:
W-2: employed
1099-G: unemployment received
1099: self-employed, rental income
1099-R: retirement income
1099-INT, 1099-OID, 1099-DIV, 1099-B, 1099-S, or 1099-SA: savings, investments, dividends income
W-2G: gambling winnings
If you're a small business owner, you may need different forms, depending on whether you have a partnership (1065) or another type of structure such as sole proprietor (1040).
deductions and credits
Tax deductions reduce the amount of taxes you owe. You may claim a standard deduction or itemized deduction based on your filing status.
The standard deduction means you get a flat amount. Itemized deductions mean you provide receipts or other evidence of payment for eligible work-related expenses (like buying a laptop if you work at home on your computer) or child care expenses (to cover time while you work).
Credits are usually a flat amount given by the federal or state government to certain groups. For example, The Child Tax Credit gave parents additional support to low-income families.
Here are a few examples of the evidence you'll need to claim common tax deductions and credits:
Forms 1098: home ownership or other mortgage interest statements, real estate or personal property tax records, and receipts for energy-saving home improvements (solar panels, solar water heater, etc.)
Records of charitable donations, including non-cash donations
Records of medical expenses
1095-A: health insurance plan through the Marketplace Exchange
Record of child care expenses such as care through a family member or babysitter for a child under the age of 13 while you’re working, or expenses paid through a dependent care flexible spending account at your work
1098-T and 1098-E: education expenses either from an institution or on student loan interest paid
Record of state and local income or sales tax paid other than through your wages
5498-SA: showing contributions to a Health Savings Account (HSA)
5498: showing contributions to an Individual Retirement Account (IRA)
estimated tax payments
If you're self-employed or a contract worker, your taxes aren't likely to be automatically deducted from your paycheck. In that case, you can choose to pay all your taxes due at the end of the tax year, or you can make estimated payments throughout the year (say, each quarter) to lessen the final amount owed.
Evidence of estimated tax payments may include:
Any estimated tax payments you made during the year to state and local tax authorities, or the IRS
Any refunds from the previous tax year that were applied to the current year
Any amounts you paid toward your taxes from the previous year with an extension
DOWNLOAD THE 2024 TAX PREP CHECKLIST HERE
how setting up direct deposit may get your tax refund faster
One question many people ask when learning how to prepare for taxes is, How will I get my tax refund money? The simple answer is that you'll receive your funds based on what information you give the IRS or your local tax authorities.
So if you only supply a postal address, you'll likely get a check mailed to you, and that could take a week or more. On the other hand, if you supply your routing and account numbers, you may quickly receive your funds by direct deposit.
If you live in Broome, Chenango, or Tioga counties in New York state, GHS can help you set up your direct deposit to receive your tax refund. Here are two common account choices:
Get the direct deposit into your checking account if you need access to the funds to help pay for your immediate living costs or a planned expense.
Get the direct deposit into your savings account if you can afford to save the money to grow your family's nest egg or build your emergency fund.
ghs experts are here to help you navigate our tax prep checklist
There aren't many people who love preparing their tax returns. If you're feeling overwhelmed or anxious, our team of friendly experts is here to answer any questions you may have about your tax returns and help you set up a direct deposit so you can receive your tax return funds as quickly as possible.
You can easily become a member of the GHS Federal Credit Union if you live, work, worship, or attend school in these counties: Broome, Chenango, or Tioga, NY. You may also join if you're related to a current member who meets our eligibility requirements.
Learn more about how GHS Federal Credit Union can help you get the most out of tax season