Tax Filing Day Checklist
Written By: Tim Baker
Tax season can be overwhelming, but a well-organized approach can help you avoid last-minute stress and costly mistakes. Whether you're filing as an individual or a business, having a checklist ensures you've gathered all necessary documents, maximized deductions, and met IRS requirements. Before hitting “submit,” review this essential checklist to make sure you’ve covered all your bases—because when it comes to taxes, accuracy and preparation are key.
1. Gather Your Personal and Financial Information
Before you begin filing your taxes, it’s important to have all your personal and financial information in order. Ensuring accuracy from the start helps prevent errors that could delay processing or trigger an IRS inquiry. Double-check that your name, Social Security number, and the information for any dependents are correct and match official records. Even a small mistake, like a misspelled name or an outdated address, can create unnecessary complications.
Beyond identification details, reviewing financial records is just as crucial. Your tax return relies on up-to-date income and expense information, so verifying bank statements, employer-provided documents, and any major financial transactions from the past year will help paint a complete picture of your tax obligations. This step also allows you to spot discrepancies early and resolve them before they cause issues with your return.
2. Collect Your Income Documents
A key step in preparing your tax return is ensuring that all sources of income are accurately reported. Missing or misreporting income can lead to delays or even penalties, so gathering the right documents ahead of time is essential.
For those employed by a company, W-2 forms provide a detailed summary of wages earned and taxes withheld throughout the year. If you’re a freelancer, contractor, or self-employed individual, 1099 forms outline various types of income, including non-employee compensation, rental payments, and investment earnings. It’s important to check that these forms match your own records to avoid discrepancies.
Beyond traditional employment, income can come from various other sources, such as rental properties, dividends from investments, or partnership earnings. If you own a business or are part of an S-corporation, K-1 forms will detail your share of the profits and losses. Taking the time to review all possible income streams ensures you report everything accurately, helping you avoid unnecessary complications when filing.
3. Organize Your Deductions and Credit Documents
Maximizing your tax savings starts with organizing your deduction and credit documents. Deductions lower your taxable income, while credits directly reduce the amount of tax you owe. Keeping these records well-organized ensures you don’t miss out on valuable savings opportunities.
Homeowners can benefit from deductions like mortgage interest, which is reported on Form 1098, while students and parents paying for higher education should gather tuition statements and student loan interest documents. If you’ve made charitable donations throughout the year, having detailed receipts on hand is essential to claim deductions.
Medical expenses, childcare costs, and energy-efficient home improvements may also qualify for deductions or credits, but eligibility depends on factors like income level and expense thresholds. For those who are self-employed or own a small business, expenses related to home offices, mileage, and business supplies can be deducted, provided you have proper documentation. By gathering these records in advance, you can confidently claim deductions and credits while ensuring compliance with IRS regulations.
4. Review Business and Self-Employment Records
For business owners and self-employed individuals, maintaining accurate financial records is essential for both tax compliance and maximizing deductions. Unlike traditional employees who receive W-2s, self-employed individuals must track their own income and expenses throughout the year to ensure accurate reporting.
A thorough review of business records should start with profit and loss statements, which provide a snapshot of revenue, expenses, and overall profitability. Ensuring these numbers are correct helps determine taxable income and potential deductions. Home office expenses, business-related travel, and equipment purchases can often be deducted, but proper documentation, such as receipts and mileage logs, is necessary to substantiate these claims.
Estimated tax payments should also be reviewed. If you’ve been making quarterly tax payments, verifying that they match IRS records can prevent unexpected tax bills or penalties. Additionally, self-employed individuals contributing to retirement accounts, such as SEP IRAs or solo 401(k)s, should confirm their contributions to take advantage of potential tax benefits. By carefully organizing business and self-employment records, you can avoid errors, reduce taxable income, and ensure a smooth filing process.
5. Check for Investment and Retirement Contributions
Investments and retirement contributions can have a significant impact on your tax return, offering opportunities to reduce taxable income or trigger additional reporting requirements. Reviewing these financial transactions ensures that you’re taking full advantage of tax-saving opportunities while remaining compliant with IRS regulations.
If you’ve contributed to a 401(k) or an IRA, it’s important to confirm your total contributions for the year. Traditional IRA contributions may be tax-deductible, while Roth IRA contributions, though not deductible, can still affect your tax planning. Additionally, self-employed individuals with SEP IRAs or solo 401(k)s should verify their contributions, as these accounts offer higher contribution limits and potential deductions.
Investment earnings, such as dividends, interest, and capital gains, must also be reported. Statements from brokerage accounts and 1099 forms detailing stock sales or mutual fund distributions help ensure that you accurately report gains and losses. If you sold investments during the year, reviewing your cost basis—what you originally paid for an asset—can help determine your actual taxable gain or loss.
For those with Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), it’s equally important to check contributions and distributions. HSA contributions may be tax-deductible, while withdrawals for qualified medical expenses remain tax-free. Ensuring that all retirement and investment-related documents are in order will not only help you stay compliant but also allow you to maximize potential deductions and tax advantages.
6. Ensure You’ve Accounted for Tax Payments and Refunds
Before finalizing your tax return, it’s essential to review any payments you’ve made throughout the year and confirm whether you’re expecting a refund or still owe taxes. Overlooking this step could result in unexpected penalties, delayed refunds, or an inaccurate tax filing.
For those who are self-employed or make estimated tax payments, verifying that your payments match IRS records can help prevent underpayment penalties. Reviewing your pay stubs or W-2 forms can also ensure that your employer has withheld the correct amount of taxes from your paycheck. If you made additional payments due to an extension or an adjusted withholding strategy, confirming these amounts will help ensure accurate reporting.
If you’re expecting a refund, it’s a good idea to double-check that your banking information is correct to avoid delays in receiving it, especially if opting for direct deposit. On the other hand, if you owe taxes, reviewing payment options and deadlines can help you avoid late fees or interest charges. Whether you’re settling a tax bill or anticipating a refund, ensuring that all payments and withholdings are correctly accounted for will provide clarity and prevent unnecessary complications.
Conclusion
Taking the time to review each step of your tax filing process ensures accuracy, maximizes deductions, and prevents last-minute surprises. By gathering the right documents, verifying payments, and organizing your records, you can confidently submit your return without stress. If you need expert guidance, Baker, Chi & Parkey is here to help. Contact us today to ensure a smooth, hassle-free tax filing experience.
At Baker, Chi, and Parkey, our goal is to support your financial growth and stability with trusted guidance and personalized service. To learn more or discuss your unique needs, please reach out to us directly. Please note that the information provided in this blog is for general informational purposes only and is not intended to serve as legal advice. For specific advice regarding your situation, we encourage you to consult with one of our qualified professionals.