By Michael Vaughn, CFP®
After another unpredictable year in the 2020s, taxes might be the last thing on your mind. But ready or not, tax season has arrived—and the more prepared you are, the faster you can put the stress behind you and get back to what matters most.
Few things are more frustrating than nearly finishing your taxes only to realize you’re missing a key document. To help you stay organized and avoid last-minute surprises, we’ve put together a tax-preparation checklist so you can tackle tax season with confidence.
Organize Your Personal & Income Information
You’ll start receiving various tax documents virtually or in the mail soon, so instead of letting them sit in a pile on your counter, create an organized system for the following.
Income Information
- Form W-2: These are issued by employers and show your wages and tax withholdings. They are supposed to be mailed by January 31.
- Form 1099-MISC: These report income you have received as an independent contractor or freelancer. You should receive one from each person or company that pays you.
- Form 1099-INT: This form will show any interest you have earned.
- Form 1099-R: This form reports income received from annuities, IRAs, or pensions.
- Form 1099-DIV: Any dividend income you earn is reported on this form.
- Form 1099-B or 1099-S: You will receive these if you have any income from the sale of property or stock.
- Form 1098: You will get this from your mortgage company reporting the interest that you paid.
- Form 1098-T: This reports payments of qualified tuition and expenses.
- Form 1095-A or 1095-C: These forms report your healthcare coverage for the year and your premium tax credit, if applicable.
- Schedule K-1 (Form 1065, Form 1120S, or Form 1041): This reports income for a partner, a shareholder, or an income beneficiary of an estate or trust. The Schedule K-1 normal deadline can be as late as April 15th.
Income-Reduction Documents
- Form 1098-E for student loan interest paid, or loan statements for student loans received
- Form 1098-T for tuition paid or receipts from the institution you or your dependents attend
- Receipts for any qualifying energy-efficient home improvements
- Records of IRA contributions made during the year
- SEP, SIMPLE, and other self-employed pension plan information
- Records of medical savings account (MSA) contributions
- Moving expense records
- Self-employed health insurance payment records
- Alimony you paid if your divorce was finalized before December 31, 2018
Personal Information
If you want your tax-filing experience to be painless, you’ll also want to make sure you have all of your and your dependents’ personal information available, such as:
- Social Security numbers and birth dates
- Copies of last year’s tax return (helpful, but not required)
- Bank account number and routing number, if you wish to have your refund deposited directly into your account
Gather Documents for Itemization
If you’re planning to itemize your deductions this year, you’ll need records to include your totals and provide proof.
Deductions and Credits
- Childcare costs: provider’s name, address, tax ID, and the amount paid
- Education costs: Form 1098-T, education expenses
- Adoption costs: SSN of the child; records of legal, medical, and transportation costs
- Form 1098: Mortgage interest, private mortgage insurance (PMI), and points you paid
- Investment interest expenses
- Charitable donations: cash amounts and official charity receipts
- Medical and dental expenses paid
- Casualty and theft losses: the amount of damage, insurance reimbursements
- Records/amounts of other miscellaneous tax deductions: union dues; unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.)
- Records of home business expenses
Taxes Paid
- State and local income tax
- Real estate tax
- Personal property tax
Updates for the 2025 Tax Year
There are some important things to keep in mind when filing your 2024 tax return. Depending on your filing status, some taxpayers may receive significantly smaller refunds due to these factors:
- The Child Tax Credit is worth a maximum of $2,000 per qualifying child.
- The Earned Income Tax Credit remains at $632 for eligible taxpayers with no children.
- The Child and Dependent Care Credit allows you to claim from 20% to 35% of your care expenses up to a maximum of $3,000 for one person, or $6,000 for two or more people.
Stay on Top of Tax Changes
Those lists cover the details of what you’ll need in front of you to thoroughly fill out your tax return. But there are also a few things to think about that could impact how you file, such as any changes that have occurred this year. Did you add another child to your family? Did one of your children start college? Did you start taking withdrawals from a retirement account? All these changes need to be reflected on your tax return but won’t show up on prior returns.
Specifically, you should stay on top of annual changes to retirement plan contribution limits. For the 2025 tax year, you can put up to $7,000 in any type of IRA. If you are over age 50, that amount goes up by $1,000 with the catch-up contribution. 2025 annual contribution limits for 401(k)s, 403(b)s, and most 457 plans are $23,500. If you are 50 or older, your yearly contribution limit goes up to $31,000. As of 2025, a new “super” catch-up contribution cap is in effect for anyone between the ages of 60 and 63. This increased amount is $11,250 instead of $7,500. And if you are eligible to contribute to an HSA, you can save $4,300 if you have single medical coverage and $8,550 if you are covered under a qualifying family plan in the year 2025. If you are 55 or older, those limits go up another $1,000. Keep in mind that for IRAs and HSAs, you have until April 15th, 2025, to contribute for the 2024 tax year.
A knowledgeable financial professional can help you create a strategy, and understand any tax law changes and how they affect you.
Plan for What’s Ahead
With everything going on in the world, filing your 2024 tax return accurately may feel like just another stressor—but getting it done right is essential to your financial plan’s success. Beyond this year’s filing, it’s just as important to take a step back and look at the bigger picture so that you’re using every available strategy to reduce your tax liability and boost your savings.
Taxes can be complex, and navigating them effectively takes more than a once-a-year approach. Working with a knowledgeable professional can help you uncover opportunities and align tax planning with your overall financial goals.
If you’re ready to take a proactive approach to tax planning but don’t yet have a trusted tax planner, let me know. I work with several accountants to help clients create a strategy that gives you confidence in every aspect of your financial plan. You can reach out to me by emailing me at [email protected], calling (417) 351-2942, or using my online calendar.
About Michael
Michael Vaughn is a CERTIFIED FINANCIAL PLANNER® professional and Vice President at Pinnacle Family Advisors (PFA) with 24 years of industry experience. Before joining the PFA family, he served clients with investment management and retirement planning at The Mutual Fund Store for 14 years. Michael graduated from Missouri State University with a bachelor’s degree in business administration and management and earned his CFP® certification in 2004. He also served 20 years in the Missouri National Guard, retiring in 2007 as a Major. He currently volunteers on the board of directors for Good Dads and Fellowship of Christian Athletes. Michael is married to Lori and they have two daughters. To learn more about Michael, connect with him on LinkedIn.