Organization is a key to produce positive and accurate results – and tax preparation process is no exception. You need certain pertinent information and documentation to accurately file your tax return. Here’s a tax prep checklist most taxpayers might need to complete the job.

Personal information

Let’s start with items that are common on any tax prep checklist. These applies to new and existing clients:

  • Last year’s taxes, both your federal and — if applicable — state return. These are always handy to have if you filed last year’s taxes and the documents you used to report income and expenses.
  • Social Security numbers and date of birth for yourself, your spouse and all dependents. Remember, in addition to children, dependents can include elderly parents and others.

Income

Gather all the documents that confirms all the money you received during the previous year from all possible sources that apply to you.

  • W-2 forms. Employers must issue these by Jan. 31, so keep an eye on your mailboxes, both physical and electronic.
  • 1099 forms. Employers must issue these by Jan 31. Each of these ends with a different suffix, depending on the type of payment you received. For example, form 1099-MISC is for contract work. If you’re paid via a third party such as PayPal, Uber, Lyft or Amazon, you’ll likely get a 1099-K. If you are not issued any forms and you are self-employed, please gather your bank statements for the past 12 months and be prepared to total all deposits received for your line of business to report on Schedule C.
  • Investment earnings show up on 1099-INT for interest, 1099-DIV for dividends and 1099-B for broker-handled transactions.
  • Rental income. Please gather all income associated for your business property for the past 12 months to report on Schedule E.

Deductions

Deductions help reduce your taxable income, which generally means a lower tax bill. The key to claiming deductions is documentation — not only can it protect you if you’re ever audited, it can cut your tax bill by helping you remember what to claim. Gathering those records may take time, but it can pay off.

You don’t have to itemize to benefit from some deductions. These are listed directly on Form 1040. More deductions are available if you itemize expenses on Schedule A.

Here’s a rundown of some popular tax deductions. Make sure you have documentation for each before you file:

  • Retirement account contributions. You can deduct contributions to a traditional IRA or self-employed retirement account. Just be sure to stay within the contribution limits.
  • Educational expenses. Students can claim a deduction for tuition and fees they paid, as well as for interest paid on a student loan. The IRS won’t accept your deduction claim without Form 1098-T, which shows your education transactions. Form 1098-E has details on your student loan.
  • Child Care Expenses. If you have paid any childcare costs for kids K-5, they will be deductible as a credit on Federal Income Tax Return. This also includes any daycare, after-school and summer camp costs. For grades 6-12, public and private school fees maybe deductible on your State Return if you are required to file.
  • Student loan interest. If you have paid interest on the student loan you took out and made payments throughout the year, you will get a form 1098-E to report any interest you have paid.
  • Medical bills. Medical costs could provide tax savings, but only if they total more than 10% of adjusted gross income for most taxpayers.
  • Property taxes and mortgage interest. If your mortgage payment includes an amount escrowed for property taxes, that will be included on the Form 1098 your lender sends you. That document will also show how much home loan interest you can claim on Schedule A.
  • Rental Income Deductions. If you are deducting expenses for business property, be prepared to bring receipts and/or spreadsheets with all the repairs and operating costs incurred for the past 12 months associated with rental property you can claim on Schedule E. If it’s a newly acquired property and was placed in business for the first year, you need to bring HUD-1 from purchase during the closing sale to report all deductible expenses associated with the purchase of the property.
  • Charitable donations. To ensure your generosity pays off at tax time, keep your receipts for charitable donations. The IRS could disallow your claim if you don’t have verification. Cash is not allowed as a proof of donation.
  • Classroom expenses. If you’re a school teacher or other eligible educator, you can deduct up to $250 spent on classroom supplies.
  • State and local taxes. You can deduct various other taxes, including either state and local income or sales taxes (up to $10,000, including property taxes). You don’t need receipts for the sales tax; the IRS provides tables with average amounts you can claim. The tax on a major purchase, however, can be added to the table amount, so keep those receipts.

Credits

  • American Opportunity and Lifetime Learning credits. These education-related credits can save you quite a bit of money. As with the tuition and fees deduction, Form 1098-T is required to claim either.
  • Child Tax Credit. The standard Child Tax Credit is worth up to $2,000 per child dependent. If you added to your family through adoption, you might be eligible for additional tax credits.
  • Retirement savings contributions credit (also known as the Saver’s Credit). Contributions to a 401(k), similar employer-sponsored plan or an IRA might allow you to claim this credit.

Payments

Most of us have income taxes withheld from our paychecks to cover our tax liabilities; that amount is on our W-2 forms. But if you made Federal or State estimated tax payments during the year, have this amount handy, too. Accurately reporting payments and recording dates they were made throughout the year will definitely correctly calculate your refund or balance due so no penalties will be collected by IRS.