This checklist is your trusty sidekick, ensuring you’re armed and ready to face the business tax battlefield with confidence. Tax templates provide a standardized format that eliminates the need to create a tax checklist from scratch. This saves you time and effort in designing tax preparation checklist excel a system to track your tax-related information. Tax templates provide a structured framework for organizing your financial information. Spreadsheet software allows you to create a comprehensive checklist, breaking down the tax preparation process into manageable tasks.

Should I Keep These Tax Documents After I File My Return?

Tax credits are a dollar-for-dollar reduction in the amount of tax you owe. Generally, you’ll need the following documentation to claim potentially valuable tax credits. This includes a quick way to calculate your marginal tax rate by selecting your marital filing status and inputting your total taxable income. For a full list of the 2022 federal income tax brackets, see the worksheet  in our Tax Prep Checklist Template called 2022 Tax Brackets. Tax Day is still months away, so use this time leading up to get your financial ducks in a row. Getting everything ready now means you’ll have time to fix errors, make more contributions, or find any missing paperwork.

Tax Prep Checklist, Bracket Estimator, and Fun Facts

You can even download a free Excel file (see bottom of the post) that has all the items on the list to help you stay organized. A Form 1040 return with limited credits is one that’s filed using IRS Form 1040 only (with the exception of the specific covered situations described below). The information provided in this blog post is for general informational purposes only and is not intended to be, nor should it be construed as, legal, financial, or tax advice. Tax laws and regulations are https://www.bookstime.com/ complex and subject to change; you should consult with a professional tax advisor, financial planner, or attorney for advice specific to your individual circumstances. The author and Simplicity Financial disclaim any liability for any errors or omissions in the information provided or for any actions taken in reliance on this information. Additionally, spreadsheet files are easily shareable and accessible, making collaboration with tax professionals or other stakeholders more efficient.

Tax Credits

New Mexico exempts its resident centenarians from state taxes, figuring that after 100 years they’ve paid their fair share in taxes. Learn this and other fun facts while you’re procrastinating in our Tax Prep Checklist Template. For example, if you regret not maxing out your retirement or college savings account for the prior year, you still have time to max out those accounts even though it’s technically the new year. Do you have all of your necessary paperwork ready and waiting? Now you can use this time to go back and make any retroactive contributions for the prior tax year. Have a better understanding of your business’s finances using our free income statement template.

Itemized tax deductions and credits

Bring documentation of the following losses if they apply to you in 2023. If you can claim someone else as a dependent, you’ll need the following information for each person. Ordinary income is taxed at seven different rates — 10%, 12%, 22%, 24%, 32%, 35% and 37% percent. These are marginal rates, which means that they each apply only to a specific segment of your income instead of to all of your income. Download our free, simple, and comprehensive business plan template.

U.S. Small Business Tax Checklist

Stay up to date on important tax information for your business. From different structures, credits, deductions, and everything in between, this guide can help you understand how business taxes function as you prepare for the tax season. First things first, as the taxpayer, you need to gather your and your dependents’ personal information.

More In File

• Tax templates provide a standardized format that eliminates the need to create a tax checklist from scratch.
• When you’re ready to prepare your tax return using TurboTax software, you’ll be surprised at how much time you’ll save by organizing your information beforehand.
• If the IRS or your state tax authority examines your return, they might ask for records supporting the income and tax breaks on your return.
• If your mortgage payment includes an amount escrowed for property taxes, that will be included on the Form 1098 your lender sends you.
• You can also use this time leading up to tax day to make any necessary removal of excess contributions if you contributed too much.
• Make sure you include those estimates on your tax return, so you don’t pay twice.
• Deductions help reduce your taxable income, which generally means a lower tax bill.

Other Deductions

• Students can claim a deduction for tuition and fees they paid, as well as for interest paid on a student loan.
• Contributions to a 401(k), similar employer-sponsored plan or an IRA might allow you to claim this credit.
• Using a program or app to track your finances is much easier than going through your checks and bank statements for the entire year.
• With eFile, you can file your individual income tax return, including all your income from wages or employment, your small business, retirement, stocks and investments, and other income.
• And if you want to file your own taxes, you can still feel confident you’ll do them right with TurboTax as we guide you step by step.