Tax Preparation Checklist: Documents, Deductions, and More

Here’s the deal – filing taxes can be tricky, and there are some consequences for those who miss the submission deadline. On the bright side, these issues are generally easy to avoid if you prepare. 

To get a jump-start on tax prep, use our comprehensive checklist to make sure you have the documents and information you need to file before tax time rolls around.

Personal information

The only personal information you’ll need to file is your Social Security (SSN) or Tax ID Number (TIN) and birth date. You don’t have to provide physical copies of your Social Security card and birth certificate, but it doesn’t hurt to have them on hand. 

Before filing, you should also know your:

• Filing status: You must specify if you are single (not married), married filing jointly, married filing separately, head of household, or a widow(er) with one or more dependent children.² 
• Contact information: You will need to list your phone number, mailing address, and email address on your income tax return. 
• Bank account information: You must include your bank account and routing numbers on your tax return. 

Information about dependents

If you have any dependents, you must prove that they are a qualifying child, sibling, parent, or other relative. To do this, you’ll need to have these documents ready to go:

• Proof of citizenship: Your dependents must be a U.S. citizen or national, a Canadian resident, or a Mexican resident to qualify. 
• Proof break the dependent tie: In split custody cases, the IRS uses tiebreaker rules to choose which parent or guardian gets to claim the child (or children) as a dependent.^3,4 To prove that you have the right to claim a child, you will probably need to bring documents that outline your custody arrangement or child support agreement. 

Since only one guardian can claim a single dependent, you may come down to the IRS’ tie-breaker rules to decide who gets the tax break. Here are the guidelines for parents and guardians who aren’t married and filing jointly. 

Source: Internal Revenue Service⁵

The remaining criteria will depend on the classification of the person you’re claiming as a dependent. 

Claiming a child as a dependent

Whether a child is a biological relative or adopted, you can claim them as a dependent as long as they meet all of the following criteria:⁶

• Are younger than 19 at the end of the tax year and younger than you (and your spouse if filing jointly), or are younger than 24 at the end of the tax year and a full-time student or permanently disabled
• Live with you for more than half of the year
• Don’t provide more than half of their own financial support
• Aren’t married and filing jointly

However, to claim a qualifying child as your dependent, you will need their SSN or ITIN, legal documents outlining your relationship, a birth certificate showing the child’s age, and proof that they lived with you for more than half of the tax year. 

Claiming an aging parent as a dependent

You can also claim an elderly relative if they meet all of the following criteria:^7,8

• Are legally related to you
• Earn less than $4,300 annually (this rule doesn’t apply if they are disabled or working at a sheltered workshop)⁹
• Don’t provide more than half of their own financial support

To claim an elderly parent as your dependent, you will need your birth certificate or a copy of legal guardianship papers, proof that your parent lives with you for at least half of the tax year, and proof that you provided more than half of your parent’s financial support.

Tax forms needed to file

Here’s a quick overview of the income documents you should receive depending on how you earned money during the last tax year, and which forms you need to file.¹⁰

The forms you receive and file may change based on your unique tax situation – consult a certified tax preparer if you need advice. 

Documents needed for income adjustments

An income adjustment (above-the-line deduction) refers to the deductions you can claim to reduce your adjusted gross income (AGI) – the amount you earn before taxes. 

To qualify for an income adjustment, you’ll need to submit some proof – typically receipts, records, or statements to prove that you:

• Paid student loan interest
• Paid tuition
• Bought classroom supplies (for teachers)
• Made IRA contributions
• Paid alimony
• Contributed to a self-employed pension plan
• Purchased energy-efficient equipment for your home
• Made Medical Savings Account (MSA) or Health Savings Account (HSA) contributions

Receipts and documents for tax deductions and credits

If you don’t qualify to lower the amount you’re taxed, chances are you can still claim tax credits that reduce the amount you owe. You will need to take the itemized deduction to claim most of these write-offs, so hold onto your receipts until after you file. 

Here are some examples of available tax breaks that anyone who qualifies can claim: 

• Deductions for homeowners: You can use Form 1098 to deduct mortgage interest, receipts to claim residential energy credits, and records showing that you used a home equity loan to make improvements to your property to claim the home equity loan interest deduction.¹¹
• Home office: Homeowners and renters who work from home can submit statements, receipts, and records to deduct insurance, utilities, maintenance, repairs, rent, and more.¹²
• Charitable donations: You can submit receipts, bank statements, or written acknowledgments to prove that you donated to claim this deduction. 
• Medical expenses: You can submit receipts for medical expenses, doctor’s visits, and medicine to claim this deduction. 
• Child care: You can submit receipts or invoices to claim the Child and Dependent Care Credit.¹³
• Education: You can submit Form 1098-T to claim the American Opportunity Credit¹⁴ and the Lifetime Learning Credit.¹⁵
• Educator expenses: You can submit receipts to claim the Educator Expense Deduction.¹⁶
• Natural disasters: You can submit insurance claims, photographs, or damage reports to claim the Casualty Loss Deduction.¹⁷

This list is a starting point for understanding what tax breaks you can take advantage of, but it’s not an exhaustive list. Chat with a tax professional to see your options if you fit into these categories. 

When you’ve completed all these tax preparation steps, your last step is filing your taxes with the IRS and your state. The IRS will start accepting tax returns in January, and you have three basic choices when filing your taxes:

1. Hire a professional
2. Use tax filing software
3. File on your own

You can hire a tax professional 

If you have investments, properties, side hustles, or other considerations that complicate your tax situation, consider hiring a professional tax preparer to help you out. This option tends to be a little more expensive upfront and less convenient, but it can help ensure you get the most tax deductions and breaks. It also adds a layer of protection to help you avoid making mistakes. 

If you want to hire a tax professional to file your taxes, follow these steps: 

• Search for a qualified tax preparer: Look for a certified professional with a Preparer Tax Identification Number (PTIN). You should also try to find someone with a good reputation by asking people you know and looking through reviews. 
• Provide enough information: Once you choose a tax preparer, they will use the wage reporting and earning statements you provide along with any receipts you want to use for deductions to complete your income tax return. 
• Review and sign the tax return: After the tax return is complete, carefully review it to make sure all of the information is correct. Then, the tax preparer can submit it for you. 

You can do your taxes with tax filing software  

If your tax situation is fairly straightforward and you want to get your refund as fast as possible, consider filing your taxes online. These options are generally low-cost, and many platforms ask questions to ensure you take all of your qualifying deductions. 

To do your taxes with an online filing service, follow these steps:

• Select a service: Choose a reputable tax filing website.
• Enter your information: Follow along with the automated tax assistant to enter details about your income, deductions, and tax credits.
• Review and e-file: Review your tax return once you’ve answered the questions. If everything looks correct, allow the tax filing software to file your tax return with the IRS electronically. 

You can do your taxes by yourself

You can file a paper copy of your taxes and mail it to your state’s IRS mailing address. This tax filing method is the slowest, and you will likely have to wait up to a month for the IRS to process your tax return and send out or deposit your refund. 

If you still want to take this route, here are the steps you’ll need to take:

• Gather your documents: Collect the necessary documents to report your income based on how you earned the money. Also, grab any receipts or records you plan to use to claim tax breaks. 
• Fill out IRS forms: The type of tax form you should complete depends on your individual financial situation and how you earned your income. Most people will fill out Form 1040, but if you’re not a traditional employee, check with a CPA or look on the IRS website to find the right form. 
• Mail in your tax return: If you’re filing your taxes without the help of a tax preparation website, you’ll need to mail your income tax return¹⁸ to the IRS well before the submission deadline to avoid fees and other penalties. 

It can take up to a month for the IRS to process your income tax return and send your refund. And when bills are due, it pays to get your money back early.¹⁹ To get your tax refund up to five days early, set up direct deposit to your Chime Checking Account and file directly with the IRS.

Read more about how to file your taxes online. 

Still have questions about tax preparation? Here’s what you need to know. 

When is the tax filing deadline?

The tax filing deadline for individuals is Monday, April 15, 2024, unless you apply for an extension. If the IRS approves your extension, you’ll have until Oct. 15, 2024, to submit your tax return. 

Do I have to file taxes?

Most U.S. citizens and permanent residents have to file taxes. However, there are some valid reasons for not filing. For example, you might not have to file if you earn too little, are over 65 and fall below the higher earning threshold, or didn’t work over the past year.^20,21,22

What are my options if I miss the tax filing deadline?

If you file late, the IRS will charge you a monthly penalty that equals 5% of your unpaid taxes. If you file more than 60 days late, the minimum fee is $450. Your options to avoid paying these penalties are:²³

• Pay the taxes in full to prevent interest from building
• Dispute the penalty by calling the number on the top right of the notice you received from the IRS
• Request a filing extension by April 18
• Apply for a payment plan to reduce penalties

What is the difference between a tax deduction and tax credit?

Tax deductions reduce the amount you’re taxed, while tax credits reduce the amount of taxes you owe. 

How can I claim tax deductions and credits?

With the appropriate forms and documentation, you can claim tax deductions and credits by accurately reporting eligible expenses, income, and qualifying circumstances on your income tax return. You may need to file an itemized tax return to get the most tax breaks.