As the new year approaches, it's time to start thinking about tax season. Gathering all the necessary documents can be a daunting task, but with a comprehensive checklist, you'll be well-prepared to file your taxes in 2025. According to
NerdWallet, a leading personal finance website, having the right documents on hand can make all the difference in ensuring a smooth and stress-free tax filing experience.
Personal Documents
Before you start gathering financial documents, make sure you have the following personal documents ready:
Social Security number or Individual Taxpayer Identification Number (ITIN): This is essential for filing your taxes, so ensure you have your Social Security card or ITIN letter handy.
Driver's license or state ID: You'll need a valid government-issued ID to verify your identity.
Birthdate and spouse's birthdate (if applicable): This information is required for tax filing purposes.
Income Documents
Next, gather all the necessary income documents, including:
W-2 forms: You should receive a W-2 form from your employer by January 31st, showing your income and taxes withheld.
1099 forms: If you're self-employed or have freelance income, you'll need to report this income on your tax return using 1099 forms.
Interest statements (1099-INT): If you have a savings account or investments, you'll receive a 1099-INT form showing the interest earned.
Dividend statements (1099-DIV): If you have investments that pay dividends, you'll need to report this income on your tax return.
Deduction and Credit Documents
To maximize your deductions and credits, gather the following documents:
Charitable donation receipts: Keep receipts for any charitable donations you made during the year, as these may be deductible.
Medical expense receipts: If you have significant medical expenses, you may be able to deduct these on your tax return.
Mortgage interest statements (1098): If you're a homeowner, you'll receive a 1098 form showing the mortgage interest you paid during the year.
Child care receipts: If you paid for child care, you may be eligible for the Child and Dependent Care Credit.
Other Documents
Finally, don't forget to gather any other relevant documents, including:
Previous year's tax return: Having a copy of your previous year's tax return can be helpful in case you need to refer to it.
Business expense receipts (if self-employed): If you're self-employed, keep receipts for any business expenses, as these may be deductible.
By having these essential documents ready, you'll be well-prepared to file your taxes in 2025. Remember to check the
NerdWallet website for the latest tax tips and advice to ensure a smooth and stress-free tax filing experience. Don't wait until the last minute – start gathering your documents today and make tax season a breeze!
