Will tax time be a pain or a breeze this year? If you take a few easy steps ahead of time, filing your income taxes can be a lot easier and quicker. Find out what our personal loan specialists recommend to do now.
Get organized now to make tax time easier.
It might feel a little early to be thinking about income taxes, but if you put in some time to gather all the paperwork you’ll need now, you’ll feel less stressed when you work on your tax return or need to give your documents to a tax preparer. Getting started early also gives you the time to get copies of any documents you may be missing.
What kind of documents do you need?
Basically, the tax documents you need will fall into five categories:
- Personal information about you and your dependents
- Income information
- Income adjustments
- Information on deductions (if you itemize) and credits
- Information about taxes paid
Some of these tax documents will start arriving in the mail in January and February, so our loan experts recommend gathering gather them in a single file as they arrive. If you prefer to keep your information on your computer, scan the paper documents and store them in a file on your desktop. It’s still a good idea to keep the paper originals in case something happens to your scanned copies.
Your document checklists.
This checklist can help you make sure you have all the paperwork you need.
Personal information:
- Social Security numbers for you, your spouse, and all your dependents, including elderly parents or in-laws you care for. Depending on your immigration status, you may have an Individual Taxpayer Identification Number instead of a Social Security number.
Income information:
- W-2s for you and your spouse (if you file a joint tax return) from each employer you worked for this tax year
- Form 1099-MISC, if you or your spouse worked as a self-employed independent contractor or freelancer and earned more than $600. This form is also for gambling or prize winnings and scholarships
- Forms 1099-INT, 1099-DIV, 1099-B (if you use an investment broker) for interest on savings and investments
- Form 1099-G, if you got a state or local tax refund or received unemployment benefits
- Schedule K-1 for income from partnerships
- Information about alimony received, rental property income, business or farming income
Income adjustments:
These expenses can lower your total taxable income, so you pay less in taxes. You’ll need receipts or other documents showing what you paid for:
- Alimony
- Student loan interest (Form 1098-E)
- IRA contributions
- Energy credits for solar energy systems
- Medical expenses, including Form 1095-A if you bought health insurance through the marketplace, Forms 1095-B or C if you got your insurance through any other source or a marketplace exemption certificate
- Pension plan payments
- Educator expenses if you’re a teacher
Deductions and credits:
- Form 1098 for mortgage interest paid
- Form 1098-T for education expenses
- Receipts for charitable donations (cash and items donated)
- Receipts for child and adult daycare that list the provider’s tax ID number
- Information about losses from damage of property (now only if the loss is attributable to a Federally Declared Disaster)
- Receipts for adoption costs
- Receipts for medical and dental expenses
- Receipts for home office deduction if you’re self-employed, including utility bills, home repairs, phone, and Internet service
Taxes paid:
Documents showing:
- State, local, and estimated taxes paid
- Real estate taxes
- Vehicle sales and personal property tax paid
When you have all the right forms, receipts, and information together for when you start your tax return, you’ll be able to make sure the information you file is correct, and you’ll be able to get the biggest refund you’re entitled to.
Learn more about our application process to prequalify for a personal or tax loan online to pay for unexpected tax debts.
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