It´s tax season! It´s essential to categorize your expenses, starting from the largest to the smallest amounts. While some of you may have an accountant reminding you to prepare your taxes, others might need guidance on how to handle the process.

One crucial step is to gather documents for any major business purchases, such as a new truck or vehicle, since these can be claimed as deductions when filing your taxes.

What Documents Do You Need for Your 2024 Tax Return?

Personal Information

• Your full name (exactly as it appears on your Social Security card)

• Date of birth

• Social Security Number (SSN)

• Home address

• A copy of last year´s federal and state tax returns

• Bank account and routing numbers for direct deposit of your refund

If Claiming a Dependent

• Dependent´s full name (as it appears on their Social Security card)

• Date of birth

• Social Security Number or Tax Identification Number

Types of Income Forms

• W-2 Forms from your employer(s)

• 1099-G for unemployment benefits and state or local tax refunds

• 1099-INT, 1099-DIV, 1099-B for interest, dividends, and stock sales

• 1099-R and SSA-1099 for retirement plan distributions and Social Security benefits

• 1099-S for income from selling property

• 1099-MISC for rental property income

• 1099-SA for health savings account (HSA) distributions

• Schedule K-1 for income from a partnership, trust, or estate

• Records of cryptocurrency transactions

• Documentation for other sources of income, such as gambling winnings, jury duty pay, or canceled debt

Do You Own a Business?

• Report all business income

• You can also claim business expenses to reduce your taxable income

• 1099-NEC for non-employee compensation

• Records of business income and expenses

• Documentation for home office expenses if you use an area exclusively for business

Deductions

Deductions lower your taxable income, reducing the amount of taxes owed or increasing your refund. You can either take the standard deduction (a fixed amount based on your filing status) or itemize deductions.

Tax Credits

Tax credits reduce your tax liability on a dollar-for-dollar basis. You´ll typically need the following documents to claim credits:

• 1098-T for higher education expenses

• Childcare costs, including the provider´s name, address, and tax identification number

• 1095-A for health insurance purchased through the Health Insurance Marketplace

Estimated Tax Payments

If you´re self-employed or have significant income without federal or state tax withholding, you may need to make estimated tax payments. Be sure to include those payments in your return to avoid overpaying.

By staying organized and gathering the necessary documentation, you can ensure a smoother tax filing process and maximize your potential deductions and credits.