Documents to keep ready for the 2021 IRS Tax Filing

If you are preparing for the 2021 tax filing in advance, here is the checklist that can help you in the quick filing. This content has a lot of categories, but remember that not every category will apply to you. Choose your category and start collecting all the documents you require. It saves your time and reduces the chances of any error as well. Let’s have a look:

Personal information:

Tax Identification Numbers are most important in this checklist.

• Your Social Security Number or Tax ID Number
• Identity Protection PIN, if issued by the IRS to you, your spouse or your dependent
• Your spouse’s full name, Social Security number, or tax ID number, and date of birth
• Routing and account number to receive your refund by direct deposit or pay your balance due if you choose
• Information about your stimulus payment — also known as an economic impact payment (EIP) — if applicable — you may have IRS Notice 1444 or other records showing your EIP amount

Dependent(s) Information:

• Date of birth and social security number or tax ID number
• Income of dependents and other adults in your household
• Childcare records (including provider’s tax ID number) if applicable
• Form 8332 indicating that the child’s custodial parent is issuing the right to claim a child to you, the non-custodial (if applicable)
• Sources of Income: Many of these forms will not be required to file taxes annually. For example, you will only receive the investment forms you may need to file your taxes if you had distributions or other activity.

Employed:

• Forms W-2
• Unemployment (1099-G)

Self-Employed:

• Forms 1099, Schedules K-1, income records to verify amounts not reported on 1099-MISC or new 1099-NEC
• Records of all expenses — check registers or credit card statements, and receipts
• Business-use asset information (cost, date placed in service, etc.) for depreciation
•   Office in home information, if applicable
• Record of estimated tax payments made (Form 1040–ES)

Rental Income:

• Records of income and expenses
• Rental asset information (cost, date placed in service, etc.) for depreciation
• Record of estimated tax payments made (Form 1040–ES)

Retirement Income:

• Pension/IRA/annuity income (1099-R)
• Traditional IRA basis (i.e., amounts you contributed to the IRA that was already taxed)
• Social security/RRB income (SSA-1099, RRB-1099)

Savings & Investments or Dividends:

• Interest, dividend income (1099-INT, 1099-OID, 1099-DIV)
• Income from sales of stock or other property (1099-B, 1099-S)
• Dates of acquisition and records of your cost or other bases in property you sold (if a basis is not reported on 1099-B)
• Health Savings Account and long-term care reimbursements (1099-SA or 1099-LTC)
• Expenses related to your investments
• Record of estimated tax payments made (Form 1040–ES)
• Transactions involving cryptocurrency (Virtual currency)

Other Income & Losses:,

• Gambling income (W-2G or records showing income, as well as expense records)
• Jury duty records
• Hobby income and expenses
• Prizes and awards
• Trust income
• Royalty Income 1099–MISC
• Any other 1099s received
• Record of alimony paid/received with ex-spouse’s name and SSN
• State tax refund

Itemized tax deductions and credits

The government offers several deductions and credits to help individuals by reducing their tax burden, which means more money in their pocket. You will need the following documents to ensure that you receive all the deductions and credits you are eligible for.

• Child care cost: Provider name, address, tax ID, and amount paid
• Cost of Education: Form 1098-T, Education Expenses
• Adoption cost: Child’s SSN, legal, medical and transportation costs
• Home mortgage interest and points paid by you: Forms 1098
• Investment interest expense
• Charitable donations: Cash amount and value of the donated property, miles covered, and out-of-pocket expenses
• Casualty and Theft Loss: Damage Amount, Insurance Reimbursement
• Other miscellaneous tax deductions: Union dues, unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.) (Only for federal returns for tax years prior to 2018 but your state still may allow it)
• Medical and dental expenses

Taxes you’ve paid:

• Proper documentation of the taxes you have already paid can save you from overpaying.
• Paid State and local income taxes
• Paid Real estate taxes
• Personal property taxes—vehicle license fee based on the value

Other information:

• Estimated tax payments made during the year, prior year return applicable for the current year, and any amount paid along with the extension to file.
• Direct deposit information—route and account number
• Foreign bank account information—location, name of the bank, account number, maximum account value during the year