The last day to file personal and C Corp (1120) tax returns is 15th April 2024. Please expedite your filings.

Tax Preparation Checklist

What is Tax Preparation Checklist 2021?

Don’t know where to begin when starting tax preparation? This article could certainly give you a good insight. This tax preparation checklist will make things easier for you. It will make the tax filing preparation process easier and more convenient for you. Below is a complete checklist of forms and documents needed to file taxes that will help you.

Personal Documents

  • A Social Security or Tax Identification number for everybody mentioned on your tax statements -First of all you will mention your social security number. But don’t forget your wife and beneficiaries (where relevant) as well. You will mention TIN ( Tax Identification Number) when someone does not have a social security number.
  • It must also include the date of birth of everyone in your tax records

Income and Investment Information

  • W-2 document and Tax Declaration-W-2 forms relate to your earnings, and it also shows the amount that was paid in taxes. Your boss must send this form by February. But if your employer has not yet sent you the form then you can request it. 
  • There are different tax return forms that you will need for different payments. If you donated to the IRA, then you will need Form 5498. Form 1098-E is needed when you are paying student loans. For the house, mortgages you will have to get a 1098 form.
  • Last year’s state return fee – If you document your deductions, then your state refund is deemed revenue for tax reasons.
  • Other diverse income details – This could include prize cash, earnings from gambling, lottery payoffs, etc.

Small Business Tax Preparation Records

  • Business cost records – These could be invoices, credit card reports, checks, etc.
  • Quarterly tax receipts-Making payments that add to your tax amount during the year, IRS will send you the report of the amount you paid. 
  • Travel records – To be eligible for a travel discount, you must have complete details of your mileage to the workplace
  • House-based office cost – Taking the house workplace discount? Gather the details of the workplace including space. If you choose to use the expenditure counting method, you’ll also be required to gather the details of expenses relevant to your house, including home provisions and loans.

Medical Expense Records

  • Bills from pending medical expenses- It includes tests, surgical treatment in the medical facility. Any expenses that relate to your health and treatment. It can also include medication, transportation expenses, and all relevant costs. 
  • Form 1095: Form 1095 covers health insurance. Your insurance company will provide 1095-B for individuals. But in case, your organization offers an insurance policy then they will send out Form 1095-C.
  • When you are getting social security benefits then you will get SSA-1099 at the start of the year, which will show the benefits you get during the year. 

Charitable Donations

The charitable deduction can provide you with tax deductions. If you are filing the tax return and you want to get the tax deductions for contributions then you will need to show all the details. The details will include the date, amount, and the mention of the organization to which donations are made. 

Other Homeownership Info

Property Tariff- Listing your deductions saves you from the percentage of the property taxes you have already paid. 

Key Takeaway

Managing and tax preparation can become an additional burden to your daily tasks. To solve this problem, Sg Inc CPA always here for our clients, you can always take the help of tax preparation services. They ensure the accuracy and guaranteed reimbursement in your tax return.

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