Tax Preparation Checklist for 2023 Tax Season

Tax Preparation Checklist for 2023 Tax Season

Taxes

Make preparing taxes easier this year with our handy tax preparation checklist for 2022. We’ll go through everything you need to know to get your tax documents in order. Tax time can be stressful, but we’re here to help every step of the way!

Do I need to file taxes?

First thing’s first: do you even need to file income taxes? Don’t waste time gathering your tax documents if you don’t need to file. Here’s how you know if it’s worth taking the time to prepare taxes this year.

If you’re under 65 and...

• Single, file if you made at least $12,950 in 2022 (before taxes).
• Married filing separately, you must file if you made at least $5 in 2022.
• Married filing jointly, file if you’re both under 65 and made at least $25,900.
• Head of household, file if you made at least $19,400 in 2022.

If you’re over 65 and...

• Single, file if you made at least $14,700 in 2022 (before taxes).
• Married filing jointly, file if you’re both over 65 and made at least $28,700.
• Married filing jointly, file if one of you is over 65 and made at least $27,300.
• Head of Household, file if you made at least $21,150 in 2022.

These are just the most common filing statuses. If your spouse has passed, if someone can claim you as a dependent, or if you had wages from a church, there are different requirements. Let us know if you’d like help determining your filing status.

What Do I Need To File My Taxes?

The tax documents you need to gather will be different, depending on your circumstances. Are you a W-2 employee or a 1099 freelancer? Did you have more than one job? Did you collect unemployment? We’ll break down each of those situations with a simple tax checklist.

Preparing taxes will look a little different this year because there were no Economic Impact Payments for 2022. In addition, taxpayers who don’t itemize and take the standard deduction, won’t be able to deduct their charitable contributions. 

If you’re preparing your tax documents and need more details on disaster relief, premium tax credit, and clean vehicle credit get in touch with one of our ATAX offices. Our team of experts has the latest information on the IRS response to this year’s unprecedented challenges.

Tax Checklist for W-2 Employees

If the business or company you work for takes taxes out of your paycheck automatically, you’re probably a W-2 employee. At the end of the year, your employer must give you a W-2 statement. By law, they must provide it to you by February 1, 2022.

Wait to file until you have your tax records including:

• Forms W-2 from your employer(s)
• Forms 1099 from banks, issuing agencies, and other payers including unemployment compensation, dividends, distributions from a pension, annuity, or retirement plan
• Form 1099-K, 1099-MISC, W-2, or other income statements if you worked in the gig economy
• Form 1099-INT if you were paid interest
• Other income me documents and records of virtual currency transactions
• Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance Premium Tax Credits for Marketplace coverage

These are the basic documents you’ll need to complete your taxes this year. Certain deductions require you to fill out tax schedule documents in addition to what’s listed here. If you’re unsure about documents not listed here, please contact us by phone, email, or in person. 

Tax Checklist for 1099 Employees

Freelancers, contractors, and those who are self-employed won’t get a W-2 form to file. In this case, it’s essential to deduct taxes from your income directly. Most 1099 employees report taxes quarterly, but if you didn’t, here’s what to round up if you’re preparing taxes as a 1099 employee.

Tax document checklist for self-employed:

• Form 1040: This is the basic form used by nearly everyone reporting an income, whether they’re self-employed or not. Some variations of this form exist, like the 1040-SR for seniors.
• Schedule C: This is the reporting form you submit in addition to your Form 1040 as a sole-proprietor. That includes anyone who works for themselves or as an independent contractor.
• Deductions: As a self-employed individual, there are all kinds of business deductions you can claim. Gas, professional development, home offices, meals, and advertising can all be deducted. Just make sure to document them!
• Investments: Dividends from your financial investments are usually taxable. Check with your investment broker about getting the proper reporting forms, like a 1099-DIV. If you had to take unplanned disbursements, those are taxable too.

Self-employment has its rewards, but it does tend to make preparing taxes a bit more complicated. The good news is that you can deduct the supplies and expenses you pay during the year.

What If I Was Unemployed In 2022?

If you were unemployed in 2022, you’re not alone. Many Americans collected unemployment benefits in 2022.

Income tax preparation checklist for unemployment:

• Form 1040: Even if you didn’t have a job in 2022, you still need to file your taxes. Unemployment payments are considered “taxable income” by the IRS.
• W-2 statements: If you were employed in the early part of 2022 but had to stop working, don’t forget to count your income from that job. 
• Form 1099-G: if you received unemployment this year, you should obtain a Form 1099-G from your local unemployment office. 
• Investments: Just because you missed out on income this year doesn’t mean your investments aren’t earning dividends. Check with your broker to get the right forms to report them.

That’s our checklist for tax preparation under the most common circumstances. Keep it handy when you’re preparing your taxes so you can have everything ready in one place. Consulting a tax professional can take the anxiety out of tax time.

Do you have any questions about customizing your tax preparation checklist? Need help deciding which deductions to take? ATAX is here to help with filing personal taxes, bookkeeping, payroll, business taxes, and incorporations. Visit one of our many locations or call us at 866-999-2829