Ready, Set, File! Simple Steps to a Stress-Free Tax Season

It’s almost that time again – tax season! While it may not be everyone’s favorite item on the calendar, getting organized early can make all the difference. With a little preparation now, you’ll save time, reduce stress, and help the DBM team file your return smoothly and accurately.

Step 1: Start with the Basics

Gather your personal details for yourself, your spouse, and anyone you claim as a dependent. Make sure you have:

Social Security numbers or taxpayer IDs
Current address and contact information
Bank account info for direct deposit (if you’re expecting a refund)

Step 2: Collect Your Income Forms

As statements start rolling in, keep them all in one place. You’ll likely receive:

W-2s from any jobs you held this year
1099-NEC, 1099-MISC if you freelance, consult, or do gig work
1099-INT, 1099-DIV, 1099-B and/or Consolidated 1099 from brokerage account(s) for interest or dividends from investments
1099-R for retirement distributions
K-1s if you’re a partner or shareholder in a small business
Any other income sources—such as Social Security or unemployment benefits

Step 3: Don’t Forget Deductions and Credits

Deductions and credits can make a big impact! Gather any documents that support potential savings, including:

Mortgage interest and property tax statements
Donation receipts from charities (What’s a qualified charity under IRS rules? Click this link: https://www.dbmcpa.com/tax-savvy-generosity/)
- For cash gifts under $250, supporting documents can be bank or credit card statement(s) or a receipt from the charity.
- For cash gifts of $250 or more, the charity is required to provide a written acknowledgment, which you should have available for your tax preparer.
- For non-cash donations, keep a receipt showing the organization, date, and a description of what you donated.
- If your total non-cash donations exceed $500 – or any single item is worth more than $5,000 – keep your purchase records and any required appraisal.
Medical or dental expense records
- You should also keep a record of medical/dental claims paid by your insurance company, Health Savings Account (HSA) or Flexible Spending Account (FSA). Medical and dental expenses are deductible except for reimbursed amounts.
Childcare expenses and provider information
Education forms (like 1098-T or 1098-E)
Proof of retirement contributions or HSA activity (contributions or reimbursements)

Step 4: For Business Owners and Freelancers

If you run a business or are self-employed, now’s the time to tidy up your records:

Profit and loss summaries
Expense receipts (travel, supplies, advertising, etc.)
Vehicle mileage logs
1099s you’ve issued or received
Payroll summaries and estimated tax payments

Step 5: Stay Organized and Secure

Create folders—digital or paper—for each category and label them clearly. Having everything organized not only saves you time but also helps your tax preparer spot any opportunities to reduce your tax bill and prepare your return as efficiently as possible.

A little time spent organizing now means fewer surprises later and more confidence heading into the new year. And remember, if you’re unsure about what to include, just give us a call or send us a message—we’re here to help.

Here’s to a smooth and successful tax season ahead!