Preparing for Tax Season: A Handy Guide for Clients

As we approach the upcoming tax season, getting organized is key to a stress-free experience. To ensure a smooth process, we encourage our clients to start early and compile the necessary documents well in advance. Here's a handy guide to help you prepare for the tax season:
Organization Tips:

• Create a List: Make a list of your income sources and deductible expenses before tax season begins.
• ​Delivery Method: Note whether your documents will be e-delivered or mailed to you.

Plan for Changes:

• Life Events: If you've experienced significant life events such as marriage, the birth of a child, or a change in employment status, ensure these changes are made known with our team.

Individual Taxpayers:
1. Sources of Income:

• W-2s: If you're an employee, gather your W-2s from all employers.
• ​1099-INT, 1099-DIV, & Consolidated 1099 Statements: Collect any forms related to interest, dividends, or capital gains and losses.
• 1099-NEC & 1099-MISC: If you’re self-employed or have a side hustle from freelance income, or miscellaneous income.

2. Possible Deductible Expenses:

• 1098s: Look for forms reporting mortgage interest, student loan interest, and education payments.
• ​Charitable Contributions: Gather documentation for any charitable donations made during the year or charitable mileage driven.
• Additional Items - real-estate, property taxes, medical expenses, mileage, etc.

Business Owners:
1. Financial Statements:

• Income Statement and Balance Sheet: If you use accounting software, have these statements ready. Otherwise, compile a total of your income and a detailed breakdown of expenses.
• ​If you don’t have a Balance Sheet - note the ending balances for your business bank accounts and credit cards.

2. Additional Documentation:

• Mileage Records: If you use your vehicle for business purposes, keep detailed records of your mileage (MileIQ is a great tool for this).
• ​Home Office Expenses: Have documentation related to home office expenses, including utility bills and rent, or mortgage interest.

By taking proactive steps and staying organized, you can navigate the tax season with confidence. Remember, our team at Cornbelt Financial is here to support you. If you have any questions or need guidance, don't hesitate to reach out. Let's make this tax season a smooth and successful one together!