Tax season has a way of sneaking up on people. A little preparation now can make the process smoother, reduce stress, and help ensure you don’t miss valuable tax-saving opportunities. Here’s a practical guide to what you should be gathering and reviewing as you get ready to file your tax return.
1. Gather Key Tax Documents
Many tax forms arrive gradually throughout January, February, and even early March, either by mail or electronically. Keep an eye out for the following:
Income Documents
- W-2s from employers
- 1099-NEC or 1099-MISC for freelance or contract work
- Social Security (SSA-1099) or pension (1099-R) statements
- K-1s from partnerships, trusts, or S corporations (these often arrive later)
Investment and Savings Account Statements
- 1099-INT, 1099-DIV, and 1099-B for interest, dividends, and investment transactions
- Retirement account distribution forms (1099-R)
- Health Savings Account (HSA) distribution forms (1099-SA)
Other Common Documents
- Mortgage interest statements (Form 1098)
- Student loan interest statements (Form 1098-E)
- Tuition statement (Form 1098-T)
- Property tax records
- Charitable donation receipts
- Childcare expense records
- Health insurance forms (such as 1095-A, if applicable)
If you use online portals for payroll, banks, or investment accounts, log in and download copies as soon as they’re available.
2. Review What Changed Last Year
Before filing, take a moment to reflect on any major life or financial changes, such as:
- Starting or changing jobs
- Getting married or divorced
- Buying or selling a home
- Having a child
- Selling investments or a business
These events can affect deductions, credits, and filing status. Be sure to also note any tax strategies you implemented last year such as qualified charitable distributions (QCDs) from your IRA if you’re over age 70 ½ or rollovers from your employer sponsored retirement plan to another plan or IRA. These events are not always documented clearly on tax forms so it’s important you and your tax preparer are aware of them so they’re accounted for correctly.
3. Don’t Miss Last-Minute Funding Opportunities
Even though the calendar year has ended, you may still be able to fund certain accounts for the previous tax year before the tax filing deadline:
- Traditional IRA or Roth IRA contributions (subject to income and eligibility rules)
- Health Savings Account (HSA) contributions, if you were HSA-eligible during the year
- Spousal IRA contributions, if applicable
These contributions can potentially reduce your taxable income or increase tax-advantaged savings, so they’re worth reviewing before you file.
4. Organize Everything in One Place
Create a single folder—physical or digital—to store all tax-related documents. Label files clearly and keep copies of prior year returns handy, as they may be needed for reference.
5. Work With a Professional if Needed
Tax rules can be complex, especially if you have multiple income sources or investment accounts. A tax professional or financial advisor can help ensure your return is accurate and that you’re taking advantage of available planning opportunities.
Preparing ahead of time can make tax season far less overwhelming. By gathering documents early and reviewing your situation, you’ll be well positioned to file on-time and avoid unnecessary surprises. Reach out to your trusted financial advisor for guidance on what forms apply to your particular situation.