Tax day is a highly stressful event for many people, prompting them to procrastinate as long as
possible. Waiting to file yearly taxes can result in mistakes, missed deadlines and financial
penalties. Armed with a personal checklist, individuals will have the documentation they need,
filing will be easier, and tax day will be far less stressful.
Keep a Folder
Create a physical folder and place all documentation inside as the information arrives. Many
individuals use home accounting software and print-outs of pertinent information can make
filling out tax forms much easier.
The IRS wants very specific information about individuals. To fulfill those requirements, the
following information is required if applicable.
Social Security numbers and birthdates for all filers and dependents
Statement of earnings from all employment
Social Security received
Pension income received
Earning information from side hustles or the gig economy
State and local refunds
Alimony paid or received
Business or farming income
Property taxes paid
Home office expenses
Any miscellaneous income from sources such as gambling
There are several ways to reduce tax liability and the amount owed. Some of those include:
Student loan interest
Health Savings Account
Self-employment health insurance expenses
Tax credits also help people lower their tax burden. Individuals will need documentation of:
Child care expenses
Home mortgage interest paid
Work expenses such as uniforms and union dues
Taxes Already Paid
These can include personal property taxes, real estate taxes, and fees for vehicle licensing,
along with state and local taxes.
Individuals will need information about their bank accounts – both foreign and domestic – and
bank routing numbers. The IRS will need to know what account from which to deduct any taxes
owed or to deposit a refund.
At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs. We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!