What Documents Should I Gather Before Filing?

Filing taxes can be a daunting task, especially if you’re not organized or familiar with the process. One of the most important steps before you start is gathering all the necessary documents. Having everything ready not only speeds up the filing process but also ensures accuracy and helps avoid potential issues with the tax authorities. Here’s a comprehensive guide on what documents you should gather before filing your taxes.

Personal Identification Documents

Before anything else, make sure you have your personal identification information on hand. This includes your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for you, your spouse, and any dependents. These numbers are essential for accurately reporting income and claiming tax credits or deductions.

Income Statements

The backbone of your tax filing is your income documentation. This typically includes:

• W-2 Forms: If you are an employee, your employer will provide a W-2 that reports your annual wages and the taxes withheld.
• 1099 Forms: These are used to report income from freelance work, interest, dividends, unemployment benefits, or other sources. Common types include 1099-MISC, 1099-INT, and 1099-DIV.
• Other Income Records: This can include rental income, alimony received, or earnings from self-employment. Keep any invoices, bank statements, or other documentation that proves income.

Deduction and Credit Documentation

To reduce your taxable income or increase your refund, you’ll need documents that support your deductions and credits:

• Receipts and Bills: For deductible expenses such as medical bills, charitable donations, mortgage interest, property taxes, and education costs.
• Form 1098: Shows mortgage interest paid.
• Education-Related Forms: Like Form 1098-T for tuition payments or receipts for education expenses.
• Childcare Expenses: Statements or receipts if you qualify for the Child and Dependent Care Credit.

Investment and Retirement Documents

If you have investments or retirement accounts, gather relevant documents such as:

• 1099-B for stock sales,
• 1099-R for retirement distributions,
• Statements for contributions to IRAs or 401(k)s.

Previous Year’s Tax Return

Having last year’s tax return handy is very helpful. It can serve as a reference for carryover amounts, adjustments, or simply to verify information.

Other Important Documents

Depending on your situation, additional paperwork might be necessary:

• Records of estimated tax payments made,
• Notices from the IRS or state tax authorities,
• Health insurance coverage forms such as 1095-A, 1095-B, or 1095-C.

In Conclusion

Organizing your documents before you file your taxes can save you time, reduce stress, and help you maximize your return. Start early and keep everything in one place — this way, when it’s time to file, you’ll have all the information you need at your fingertips. Whether you file yourself or work with a professional, a well-prepared document collection is the foundation of a smooth tax filing experience.

Prepare your tax documents the right way — contact Watter CPA today for expert help with your Maryland return and ensure a smooth, accurate filing!