As the 2024 tax season approaches, many individuals might find themselves scrambling to organize their financial information. But by starting preparation for this year’s tax season early, you can help ensure your tax return and refund don’t face delays.
Take a look at last year’s tax return
Both your federal and state (if applicable) tax returns can act as a good starting point for knowing what to gather for this year. After paging through last year’s return, you can make a list of any income reporting documents, including not only your earned income from your job but also investment and bank accounts you may be earning interest on.
Make note of any changes to your situation
Last year’s tax return is a great starting point—but what’s happened since then? Maybe you left your job, your spouse retired, or you bought a new house. If there are any changes to your situation that might affect your tax return, you need to keep track of them. That includes:
- Changing jobs
- Becoming self employed
- Getting married
- Getting divorced
- Having a child
- Moving
- Opening new investment accounts
- Establishing new entities
- Bankruptcy
- Large gifts
- Establishing new estate planning tools such as trusts
Collect all tax documents, deductible expense receipts, and notices
If you’ve already made a list of all of the previous year’s income along with any changes you have for this filing year, collecting the paperwork should be relatively seamless. Although employers are supposed to send out all documentation by the end of January, delays can happen.
- W-2s from employers
- 1099s from anyone who paid you miscellaneous, contract, or other funds
- 1099-INT for interest earned on savings accounts or CDs
- 1099-B for proceeds from broker and barter exchange transactions
- 1099-DIV for dividends and distributions
- 1099-R for retirement plan distributions
- 1099-NEC for independent contractors
- 1099-K for income received via a third-party payment processer, like PayPal or Venmo
- 1099-S for proceeds from real estate transactions, including sale of your principal residence
- 1099-MISC for reporting income for rent and other sources of income
- 1099-G from the state unemployment department if you were unemployed at any point in 2024
- 1098 Mortgage Interest Statement (if applicable)
- Documentation of all estimated tax payments
- Documents showing any medical, educational, childcare, or other expenses
- Receipts for donations to charitable organizations
- Receipts to document deductible expenses, especially if you are self-employed or a business owner
- Confirmation of any contributions to HSA and IRA accounts
If you received any notices of prior year filings, you’ll also want to pull those together for your tax preparer. Letters or notices sent to taxpayers may be vital to correctly filing your tax return. Your tax preparer will be able to answer any questions about what does or does not qualify for your situation.
Use TaxCaddy
To provide you with the smoothest tax season experience, our Firm is continuing to use TaxCaddy. If you are a Mowery & Schoenfeld client and have not done so already, we encourage you to sign up for a TaxCaddy account with us. This will allow you to share your documents electronically, send messages directly to your preparer, complete signatures, and file all necessary returns.
For more information or to sign up, please reach out to us at taxcaddy@msllc.com.
Use electronic methods whenever possible
Electronic filing is typically faster and more efficient, allowing for quicker processing of returns and refunds—sometimes within just a few weeks. Additionally, electronic payments provide a secure way to pay any taxes owed as they reduce the risk of lost checks or identity theft.
As a reminder, M&S can set up refunds to be directly deposited to your bank account. Be sure to provide your accountant with current bank account information so it is sent to the correct account.