Tax Organizer Checklist - Opal Wealth Advisors

The key to nailing tax season is preparation. To help you gather your thoughts and get organized, we’ve created this simple checklist on what you should be thinking about as you prepare to meet with your CPA or file online. No matter your circumstances — employed, self-employed, or happily retired — this checklist covers the most important aspects of filing your taxes this year.

Item #1: Get Your Documents in Order

Gather all the tax-related documents you’ve received in the mail, over email, or in an online portal. Having everything you need ahead of time will streamline the filing process and ensure you don’t miss any critical information that could impact your total tax bill. To start, you’ll want to have some of your personal information on hand including:

Social Security numbers for all family members
Date of birth for all family members
Your bank account’s direct deposit details (including account and routing numbers)
Last year’s tax return

Then, you’ll need information about your income. The term “income” varies widely in the eyes of the IRS, spanning from your salary and Social Security benefits to lottery winnings, debt forgiveness, interest earned, and more. Here are a few common income-related tax forms you may have received:

W-2 or 1099s
1099-K or 1099-NEC for contract work
1099-INT or 1099-DIV for interest or dividend statements, respectively
Form 1095-A if you received healthcare coverage through your state’s marketplace
1099-C and 1099-A forms for canceled debt
K-1 forms for business income from an S-corporation, partnership, LLC, trust, and/or estates
1099-R for distributions from retirement accounts including IRA, 401(k), and/or pension plans
SSA-1099 for Social Security benefits

Item #2: Decide if You’ll Itemize

One of the biggest decisions you need to make is whether you’ll itemize your deductions or take the standard option. For the 2024 tax year, the standard deduction is $14,600 for single filers or $29,200 for joint filers.1 For reference, around 87.3% of filers opt for the standard deduction — though this hasn’t always been the case.2 In 2017, the Tax Cuts and Jobs Act (TCJA) nearly doubled the standard deduction amount and eliminated or reduced a large number of itemized deductions. As we think ahead, however, it’s important to note that the TCJA tax provisions are due to sunset in 2025, meaning we could see more taxpayers itemizing in the future. When deciding which is right for you, take into consideration what itemized deductions are available and whether they exceed the standard deduction. If you accrued a large amount of medical bills or gave generously to charity last year, perhaps it makes sense to itemize. If you’re unsure which option to take, this is something you and your CPA can determine together.

Item #3: Look for Above-the-Line Deductions

Even if you do use the standard deduction, you can take advantage of above-the-line deductions to further reduce your taxable income. Some common above-the-line deductions include:

Retirement contributions to tax-deferred accounts
Student loan interest
Tuition and qualifying educational expenses
Health savings account (HSA) contributions
Business-related expenses

If you do opt to itemize your deductions instead, you can also deduct the following:

Local or state taxes paid
Mortgage interest paid
Property taxes paid
Childcare expenses
Medical bills (if they were greater than 7.5% of your adjusted gross income)
Charitable donation receipts

Item #4: Don’t Forget About Estimated Taxes

It’s possible that your tax withholdings, whether from your W-2 or retirement account distributions, aren’t going to be enough to cover your tax liability this year. Perhaps you freelance on the side, earn income from rental properties, or otherwise receive additional forms of income. If your tax bill is expected to exceed $1,000, you are required to pay estimated taxes throughout the year or face potential tax penalties. When it comes time to file your return, make sure you include receipts or proof of your federal and state estimated tax payments. As a reminder, estimated tax payments are due on or around:

April 15 (for Q1)
June 15 (for Q2)
September 15 (for Q3)
January 15 (for Q4 of the previous year)

Bonus Item #5: Self-Employed Documents

If you’re self-employed, your tax return will look a little different. The good news is, though your tax circumstances are more complex, there are opportunities to take additional deductions. If you work out of your home, for example, you may qualify for the home office deduction. The key here is that the space must be used solely for the purpose of your business. You can’t claim the deduction if you work off your dining room table, for example. But if you converted a guest bedroom or garage space into a home office, then the deduction would apply. Some other deductible expenses for self-employed individuals include:

Office supplies
Legal fees
Insurance premiums:
Health insurance premiums
Long-term care insurance premiums
Business overhead insurance premiums
Phone and internet (at home and while traveling)
Work-related meals
Child and/or dependent care
Depreciation of your office or work equipment
Work-related travel expenses

Need Help Preparing for Tax Season?

While tax time comes once a year, we can help you find opportunities to minimize your tax liability all year round. We invite you to send us last year’s tax return, and we can do a free tax assessment to help get you in even better shape next year. Schedule a call now to get started. Sources: 1IRS provides tax inflation adjustments for tax year 2024 2Individual Income Tax Returns Complete Report