Personal information

Let’s start with the obvious items on any tax prep checklist.

• Last year’s taxes. Both your federal and — if applicable — state return. These aren’t strictly necessary, but they’re good refreshers of what you filed last year and the documents you used. Plus, if you're using tax software to file, many providers can upload your prior-year return to save you time from manually keying in your information.

• Social Security and/or tax ID numbers. Have these tax identification numbers ready for yourself, your spouse and all dependents. Remember, in addition to children, dependents can include elderly parents and others.

• IP PIN. If you, your spouse or a dependent have been issued an identity protection PIN by this IRS, you'll likely need to have this handy as well.

• Bank account numbers. If you're opting to receive a refund or pay your tax bill directly through your bank account, be prepared to provide your tax pro or software with those routing and account numbers.

» Need to back up? How tax returns work

Income

Gather all the documents that confirm the money you received during the previous year.

• W-2 forms. Employers must issue or mailyour W-2 by Jan. 31, so keep an eye on your mailboxes, both physical and electronic.

• 1099 forms. 1099s are informational records that detail additional income you received throughout the year. There are many types of 1099 forms and each ends with a different suffix, depending on the type of payment you received. You should expect to receive these Jan. 31 through mid-February. Common 1099s include:

Self-Employment and Business Record​

A 1099-MISC typically summarizes income earned through gameshow winnings, royalties or rentals.

• If you’re paid via a third party such as PayPal or Venmo, you’ll likely get a 1099-K.

• Investment earnings show up on 1099-INT for interest, 1099-DIV for dividends and 1099-B for broker-handled transactions.​

• If you’re self-employed, you need to report that income. You can also claim business expenses to lower your taxable income.

• 1099-NEC or 1099-K showing income earned as an independent contractor

• Records of all business income and expenses

• Documentation for home office expenses, including square footage of home and square footage of area used exclusively for business

• Records for business assets to be depreciated, including cost and date placed in service

• Miles traveled for business purposes

Deductions

Deductions help reduce your taxable income, which generally means a lower tax bill. The key to claiming deductions is documentation — not only can it protect you if you’re ever audited, but it can also cut your tax bill by helping you remember what to claim. Gathering those records may take time, but it can pay off.

You don’t have to itemize to benefit from some deductions. These are listed directly on Form 1040. More deductions are available if you itemize expenses on Schedule A.

Here’s a rundown of some popular tax deductions. Make sure you have documentation for each before you file:

• Retirement account contributions. You can deduct contributions to a traditional IRA or self-employed retirement account. Just be sure to stay within the contribution limits and rules.

• Educational expenses. Students can claim a deduction for tuition and fees they paid, as well as for interest paid on a student loan. The IRS won’t accept your deduction claim without Form 1098-T, which shows your education transactions. Form 1098-E has details on your student loan.

• Medical bills. Medical costs could provide tax savings, but only if they total more than 7.5% of adjusted gross income for most taxpayers.

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