Tax preparation checklist

Use the tax checklist below to identify the documents and forms you’ll need to bring to your appointment in order to prepare and file your income taxes:

Personal Information
ID, driver’s license or passport
Social security card*

Dependent(S) Information
Social security card of each dependent*
Birth certificate of each child*
Proof of residency for your child (a document that shows your child’s name and address matching yours, such as a letter from a school, daycare provider, insurance company, doctor, or pharmacy)

Advance Child Tax Credit Letter from IRS

Sources Of Income
Employed
Forms W-2

Unemployed
Unemployment (1099-G) – if you didn’t receive in mail, go online and print it out. For Georgia residents, the web site is https://www.dol.state.ga.us/Access/Service/BP1099Inquiry

Self-Employed
Forms 1099-NEC or 1099-MISC, Schedules K-1 (if any), income records to verify amounts not reported on 1099s

• Add Up All Your Income
  Gather records of all income, including any forms, invoices, or payment statements.

• Records of All Expenses
  Collect credit card or bank statements and actual receipts for all business-related expenses.

• Categorize Your Expenses
  Add up expenses in different categories, such as:

  • Supplies
  • Meals and entertainment
  • Travel
  • Mileage
  • Office expenses
  • Cell phone
  • Internet

• Business-Use Assets (Costing $500 or More)
  Document details for depreciation purposes, including:

  • Cost of the asset
  • Date placed in service
    Examples: computer, cell phone, office furniture, large machines, etc.

• Use of Home Office

  • Record the total square footage of your home and the square footage of your office.
  • Add up annual utilities like electricity, water, gas, and any home or office improvements.

• Estimated Tax Payments
  If you made any estimated tax payments (Form 1040-ES), record the exact amounts and dates of payment.

Rental Income

Records of Income and Expenses
Maintain detailed records of all income and expenses related to your rental property.

Rental Asset Information
Document details of rental assets for depreciation purposes, including:

Cost of the asset & Date placed in service

Categorize Your Expenses
Add up expenses in categories such as:

Repairs, Utilities, Property tax, & Legal fees

Retirement Income

Pension, IRA, or Annuity Income
Gather Form 1099-R for distributions from pensions, IRAs, or annuities.

Traditional IRA Basis
Record amounts you contributed to a Traditional IRA that were already taxed (basis).

Social Security or Railroad Retirement Benefits Income
Collect the following forms as applicable:

1099-SSA: Social Security Benefit Statement

RRB-1099: Railroad Retirement Board Statement

 

Savings & Investments or Dividends

Interest and Dividend Income
Forms such as:

1099-INT (Interest Income)

1099-OID (Original Issue Discount)

1099-DIV (Dividend Income)

Income from Sales of Stock or Other Property

Forms such as:

1099-B (Proceeds from Broker and Barter Exchange Transactions)

1099-S (Proceeds from Real Estate Transactions)

Records of Acquisition and Cost Basis

Document the dates of acquisition and your cost or other basis for the property you sold.

Note: Ensure you have these details if the basis is not reported on 1099-B.

Health Savings Account (HSA) and Long-Term Care Reimbursements
Forms such as:

1099-SA (Distributions from an HSA)

1099-LTC (Long-Term Care and Accelerated Death Benefits)

Investment-Related Expenses
Keep detailed records of any expenses related to your investments

Other Income & Losses
State tax refund (1099-G)
Gambling income (W-2G or records showing income, as well as expense records)
Jury duty records
Hobby income and expenses
Prizes and awards
Trusts
Royalty Income 1099 Misc.
Any other 1099s received
Record of alimony paid/received with Ex-spouse’s name and SSN
Foreign financial accounts; if value exceeded $10,000 at any time during the calenda year bring the name of bank, address, account number and local and dollar amounts

Types Of Deductions
Home Ownership
Forms 1098 or other mortgage interest statements
Real estate and personal property tax records
Receipts for energy-saving home improvements such as solar panels, exterior doors, windows, insulation materials, air-conditioner, water heater…

Charitable Donations
Cash amounts donated to houses of worship, schools, other charitable organizations approved by IRS
Written evidence of non-cash charitable donations to Goodwill, Hope House, NSpire…
Amounts of miles driven for charitable

Medical Expenses
Amounts paid for health-care insurance if not through work
Add up payments made to doctors, dentists, hospitals, and pharmacy if they are 10% and more from your adjusted gross income and bring receipts
Amounts of miles driven for medical purposes

Health Insurance
Form 1095-A if you enrolled in an insurance plan through the Marketplace, ObamaCare

Childcare Expenses
Letter with childcare’s name, EIN (employee identification number of child care provider) or SSN (social security number of baby-sitter), address, and dollar amount paid
Adoption expense information for the adoption credit

Educational Expenses
Form 1098-T from educational institutions – very important to print out this form from school and bring it with you, if you didn’t receive one in mail
Receipts for books and school supplies and add them up
Records of any scholarships or fellowships you received
Form 1098-E if you paid student loan interest

State & Local Taxes or Sales Tax
Amount of state/local income tax paid (other than wage withholding), or amount of state and local sales tax paid
Invoice showing amount of vehicle sales tax paid
Amount paid for preparation of last year’s tax return

Retirement & Other Savings
Form 5498-SA showing HSA contributions
Form 5498 showing IRA contributions
All other 5498 series forms (5498-QA, 5498-ESA)
Other tax credits and deductions

You bank account and routing number. It is the best if you bring your checkbook with you!

*If I prepared and filed your tax returns last year, you do not have to bring these documents again

Tax Law Changes for Individuals for 2024

Child Tax Credit

The Child Tax Credit is $2,000 per child or dependent and is available only for children under 17 years of age. For other dependents, the credit is limited to $500 per dependent.

Child and Dependent Care Credit

The Child and Dependent Care Credit provides a tax break for parents or guardians who incur childcare expenses, with eligibility extending to working taxpayers as well as full-time students or those unemployed for part of the year. If you paid a daycare center, babysitter, summer camp, or other care provider for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a credit on your 2024 taxes. The credit covers up to 35% of $3,000 in qualifying expenses (maximum credit of $1,050) for one child or dependent, or $6,000 in qualifying expenses (maximum credit of $2,100) for two or more. For instance, in 2024, a taxpayer with one qualifying person, $3,000 in qualifying expenses, and an AGI of $60,000 could receive a nonrefundable credit of about $600 (20% x $3,000). However, under revised rules, the same taxpayer may instead claim a refundable credit of approximately $1,500 (50% x $3,000).

Forms 1099-MISC and 1099-NEC

To reduce confusion around filing deadlines, Form 1099-MISC (Miscellaneous Income) has been redesigned, and Form 1099-NEC (Non-employee Compensation) was reintroduced starting in tax year 2020. Before this change, non-employee compensation was reported on Form 1099-MISC, box 7, and had to be filed with the IRS by January 31, while all other payments on Form 1099-MISC had to be filed by February 28 for paper filers (March 31 for electronic filers).

Under the new system, Form 1099-NEC must be filed with the IRS by February 1, and Form 1099-MISC must be filed by March 1 if filing on paper (March 31 for electronic filers). Both forms must be furnished to recipients by February 1. Payments over $600 in non-employee compensation, including payments to independent contractors, attorneys, and for golden parachute payments, will be reported on Form 1099-NEC, box 1.

Income Brackets and Rates for 2024 Tax Season

Here’s a refresher on how income brackets and tax rates work: Your tax rate (the percentages of your income that you pay in taxes) is based on what tax bracket (income range) you’re in.

For example, if you’re single and your income is $75,000, then you’re in the 22% tax bracket. But that doesn’t mean your tax rate is a flat 22%. Instead, part of your income is taxed at 10%, another part at 12%, and the last part at 22%. (You can check out the chart below to see all the tax brackets with their corresponding tax rate.)

For the 2024 tax year, the tax rates are the same—but there are some slight changes to the brackets. Basically, the brackets have been adjusted by a few hundred dollars from 2023 to account for inflation.

2024 Marginal Income Tax Rates and Brackets 2024 Marginal Tax Rates	Single Tax Bracket	Married Filing Jointly Tax Bracket	Head of Household Tax Bracket	Married Filing Separately Tax Bracket
10%	$0–11,600	$0–23,200	$0–16,550	$0–11,600
12%	$11,600–47,150	$23,200-94,300	$16,550-63,100	$11,600-47,150
22%	$47,150–100,525	$94,300-201,050	$63,100-100,500	$47,150-100,525
24%	$100,525–191,950	$201,050-383,900	$100,500-191,950	$100,525-191,950
32%	$191,950–243,725	$383,900-487,450	$191,950-243,700	$191,950-243,725
35%	$243,725–609,350	$487,450-731,200	$243,700-609,350	$243,725-365,600
37%	Over $609,350	Over $731,200	Over $609,350	Over $365,600

Cryptocurrency taxes

The IRS has made it mandatory to report bitcoin transactions of all kinds, no matter how small in value. Thus, every US taxpayer is required to keep a record of all buying, selling of, investing in, or using bitcoins to pay for goods or services (which the IRS considers bartering). Follow the link below for more information:

How to report Cryptocurrency on your tax return

Mileage & Meal Allowance

The standard mileage rate for the cost of operating your car for business use is 67¢ per mile. The rate for medical expenses and moving expenses for certain military personnel deductions is 21¢ per mile. For charitable purposes, the rate remains 14¢ per mile.

Transportation industry workers may claim a special meal allowance rate of $80 per day.

All cash contributions made in 2024 to any qualified charity must be supported by a dated bank record or a dated receipt. The American Opportunity Credit (formerly the Hope Credit) for 2024 is up to $2,500—100% of the first $2,000 of costs, plus 25% of the next $2,000 of costs. The maximum interest deduction on education loans is $2,500, which phases out if your modified adjusted gross income (MAGI) is more than $80,000, or more than $160,000 on a joint return.

Prices

Preparing and electronic filing of your income tax return:

$120 students & retirees (simple tax returns with no deductions nor business expenses)

$160 per tax return

Additional:

Small business, contractor, 1099, each Schedule C: 

                   income up to $10k = $100

                   income $10k – $100k = $250

                   income over $100k = $350 +

Rental each property, Schedule E:  $150

Any other state except Georgia:  $100 per state

Expenses from work (not eligible for Georgia):  $120

“I will bring/send you one more paper to finish with my taxes” is  $30

Copy of tax return for previous year:  $30 per tax return per year

Schedule K-1:  $30 per form

Consultation 20min:  $60

Preparing amendment tax of tax return that I have already prepared:  $120

Preparing and correcting amendment tax of tax return that I have not prepared:  $300

No show or cancelation the same day:  $60

If you’re OUR existing client who lives in Georgia and do NOT wish to come to our office for whatever reason, we can do your taxes over the phone for extra charge of $150.00.  Please call or email us for details.

During non-tax season, above prices are doubled.

Who must file a tax return?

All individuals in the United States who have earned income of $14,600 or more and/or net profit from self-employment of $400 or more must file a U.S. tax return. Individuals with a gross income of less than $14,600 (the personal exemption amount for 2024) may still file their returns and will receive a refund of everything they paid toward their federal and state taxes.

What is income?

Income is a financial gain derived from labor (work), capital (money), or a combination of the two. There are two types of income: nontaxable and taxable income.

Nontaxable income is by law exempt from tax. Exempt income includes welfare benefits, child support, workers’ compensation, gifts, and federal income tax refunds.

Taxable income is the total worldwide income received in the form of money, property, or services that is subject to tax.

There are two types of taxable income:

Earned income is received for services performed. Some examples include wages, commissions, tips, jury duty, and generally, farming and other business income.

Unearned income includes money received for the investment of money or other property, such as interest, dividends, and stock earnings. It also includes pensions, alimony, unemployment compensation, lottery winnings, and other income that is not from performing services.

What does the deadline apply to?

The April 15, 2025 deadline will apply to any of the following:

• Filing 2024 federal individual income tax return, whether filed electronically or on paper.
• Claiming individual refund for tax year 2019, where the regular three-year statute of limitations is expiring.  (Note: There is no penalty for failure to file a tax return if a refund is due.  But by waiting too long to file, you can lose your refund.  In order to receive a refund, the return must be filed within 3 years of the due date.)
• Requesting an automatic six-month tax-filling extension.
• Making a balance due payment for tax year 2024.
• Contributing to a Roth or traditional IRA for tax year 2024.

What if I owe more than I can pay?

Even if you do not have enough money to pay, returns should be filed to avoid further penalties for failure to file. The IRS offers alternative account resolutions, such as setting up an installment agreement, which allows you to pay the tax debt over time.

Will I go to jail?

A long-standing practice of the IRS has been not to recommend criminal prosecution of individuals for failure to file tax returns before being notified they are under criminal investigation. You must make an honest effort to file a correct return and have income from legal sources. A letter from the IRS concerning taxes is not a notice that you are under criminal investigation. The IRS aims to get people back into the system, not prosecute ordinary people who made a mistake. However, flagrant cases involving criminal violations of tax laws will continue to be investigated.

When do penalties and interest apply?

Penalties and interest do not apply in years in which you are entitled to a refund. However, penalties and interest apply to years in which money is owed. The interest charged on late payments can range from 4% to 9%, and the penalty for filing late is 5% per month.

General Tax Information

In the United States, federal income taxes are collected by the Internal Revenue Service (IRS), a branch of the United States Treasury. All individuals who have income and/or profit from self-employment are required to file a U.S. tax return by April 15, 2025. Individuals are required to pay federal income tax regardless of where they live in the United States.

Most states, with the exceptions of Texas, Florida, Nevada, Washington, Wyoming, South Dakota, and Alaska, also have a state income tax. Tennessee and New Hampshire only apply state income tax to interest and dividend income. Additionally, some cities may have a city income tax or municipality income tax.

Tax withholding

Employers are required to deduct federal income tax and state income tax (if any) from an employee’s paycheck. Employers must also deduct Social Security and Medicare contributions, collectively called F.I.C.A., which are generally 7.65% of an employee’s gross income. Employers are required to send W-2 forms to employees by January 31 for all wages paid during the previous year. W-2 forms contain the information needed to file taxes.

Self-employed individuals must make quarterly payments of their estimated taxes to the federal and state governments, or make a payment at the time income taxes are filed.

Filing Taxes

Tax returns list income and any allowed deductions or credits against that income. Tax returns also show the tax liability at the end.  If one is entitled to a refund, he or she can either provide bank information so that the IRS can deposit money directly into a bank account, or the IRS can send a check.  Direct deposit into a bank account generally takes around two weeks, while it may take one month or more to receive a physical check.
If money is owed towards federal income taxes, a check must be written, payable to the United States Treasury by April 15.  Credit card payments on line are also acceptable, but one will be charged a large fee for using a credit card (the fee for processing depends on the credit card company agreement and is usually about 10% of the total payment).

Employers are required to deduct federal income tax and state income tax (if any) from an employee’s paycheck. Employers must also deduct Social Security and Medicare contributions, collectively called F.I.C.A., which are generally 7.65% of an employee’s gross income. Employers are required to send W-2 forms to employees by January 31 for all wages paid during the previous year. W-2 forms contain the information needed to file taxes.

Self-employed individuals must make quarterly payments of their estimated taxes to the federal and state governments, or make a payment at the time income taxes are filed.

What is the best way to file taxes?

I recommend that taxes be filed electronically. While it costs a little more, it is the safest and fastest way to send taxes and receive money from the IRS. For example, if one sends taxes by regular mail and receives a check from the IRS, it can take 6 to 8 weeks (assuming it is not lost in the mail). During the first three weeks, there is no way to check on the status of your tax return or when it will be processed. On the other hand, filing taxes electronically allows the refund to be deposited into your bank account in less than 2 weeks.

When taxes are filed electronically, they are sent directly to the IRS representative who will process them in a few days, and the refund will be deposited into your account in less than two weeks. Additionally, it is easy to track the status of your tax return online or by phone at any time.

Let us help you with any questions or concerns you may have.