Each year, it can pay to get organized and file your tax documents early, because you’ll receive your tax refund sooner and you’ll avoid the stress of scrambling at the last minute.
That’s important because the Internal Revenue Service has been particularly slow in recent years, according to Dan Johnson, a professor of economics and business at Colorado College.
“The IRS is clearly understaffed this year,” Johnson says, “and I expect delays across the board.”
To help you get a leg up on tax preparation, whether you’re tapping a tax professional to prepare your return or doing it yourself, here’s all the information and documents you need to gather.
What tax forms do I need to file taxes?
Note that employers are required to issue W-2s by January 31. If you’re self-employed, that deadline also applies to 1099 forms. Here are more details on some common tax forms you’ll need to collect, and if you have a spouse who works, and you’re both filing jointly, you may both need some of these forms:
Form 1040
This is the form you fill out to file your IRS tax return. If you use tax preparation software, a tax preparation service, or a tax accountant – they will all have it, and you don’t need to get it yourself. If you’re doing it yourself, your library probably has Form 1040. Or you can go to the IRS website to print it or fill it out online.
W-2
If you work for an employer, you can expect to receive a W-2, which shows how much you earned last year and how much was deducted for taxes and any other withholdings.
1099-NEC
You can expect to receive this 1099 form if you worked as a freelancer or if you did contract work in 2022.
1099-K
Some freelancers and gig workers for companies like Uber, Lyft, or Airbnb should see this form. Form 1099-K reports income that goes through third-party networks, such as PayPal, or transactions that go through debit card or credit card processors. It should be noted that “money received through third-party payment networks as personal gifts from friends and relatives or reimbursement for personal expenses is not taxable,” according to the IRS website. So if a friend sent you money via Venmo for a chicken dinner last week, you don’t have to report it.
Other 1099 Forms
If you earn interest from savings or investments, you may receive a 1099-INT form. You may also receive a 1099-DIV, which reports dividends and distributions from investments. If you received a 1099-C, you had a debt cancellation of $600 or more.
1098
Homeowners and mortgage interest payers will receive a Form 1098 from their mortgage lender. It will show the amount of mortgage interest the homeowner is paying and can deduct. It can also show property taxes paid throughout the year as well as any points paid, both of which are tax-deductible.
1098-E
This is a form that records tax-deductible student loan interest payments over $600. (You can deduct up to $2,500 worth of student loan interest.) If you owe less than $600, you won’t get a 1098-E, but if you know the amount of interest you paid, you can deduct it. If you need a form, your loan servicer should send it to you.
1098-T
The 1098-T can be used to help you calculate and claim education tax credits and deductions. It reports payments received for eligible tuition and related education expenses that you may have paid in the past year. You also need to include scholarships or grants. If you need to fill it in, your school or child’s school should send it to you.
What other documents do I need?
Of course, the federal government, your employer, your college, and so on will not send all your tax documents. You may want to take note of these other documents that you may need when you begin preparing your taxes.
Supporting information for tax deductions and credits
If you plan to take advantage of tax deductions and tax credits, you’ll want to have documents to ensure eligibility. This may include documents or receipts related to child care, medical expenses, and job search costs based on credits or deductions you are claiming. If you’re claiming a mileage tax deduction, for example, you’ll want to log the dates, destinations, and reasons for the trip.
Social Security numbers for family members
Make sure you have your correct Social Security number as well as the number of your spouse and dependents. If you had a baby in 2022, make sure you have a Social Security number to claim child tax credits.
Contribution information
Remember to collect documentation on tax-deductible retirement plan contributions. If you contribute to a 529 plan in 2022 and your state offers a tax benefit, you’ll want to keep that information on hand for your state, but not federal, taxes.
Charitable donation
Collect any receipts for charitable contributions you made during the year. You don’t have to send these to the IRS, but in case of an audit, you’ll want to prove that you contributed what you claimed.
Last year’s tax return
You don’t need to keep them on hand, especially if you’ve been working with tax preparation software for years (will or should be in service), or if you’re working with your tax accountant (who should also have them). But if you’re doing your taxes yourself, it might not hurt to be able to look them over.
Estimated tax payments you send to the government
Do you work for yourself? If you do not have this information from a tax preparation software service or tax accountant, you will need to supply it to the IRS. If you work for a company, your taxes come out of your paycheck.
Your bank account information
Do you want your refund sent to you via direct deposit? You need to provide that information to the IRS.
Some new changes to be aware of
Every year, there are some new changes to look out for when filing your taxes, and in that sense, this year will not disappoint.
“The key issue here is for (tax year) 2022,” says Sherry Geddes, associate professor of accounting at Hope College.
“The child tax credit resets to pre-pandemic levels of $2,000 per child for 2022,” says Geddes. “This is a decrease from 2021 when the credit was $3,600 for children under 6 and $3,000 for children ages six to seventeen. Because the tax credit directly reduces the amount of taxes owed dollar for dollar, it will have an adverse effect on 2022 tax filers.
In other words, when it comes to taxes and your children, you won’t get as many tax breaks as you did years ago.
But according to the IRS website, there are some other changes to be aware of before diving into working on an IRS tax return:
“There is no above-the-line charitable deduction. During COVID, taxpayers can take a $600 charitable donation tax deduction on their tax return. However, in 2022, those taking the standard deduction cannot take the above-the-line deduction for charitable donations.”
“More people may qualify for the premium tax credit. For the tax year 2022, taxpayers may still qualify for temporarily extended eligibility for the premium tax credit.”
“The eligibility rules to claim the tax credit for clean vehicles changed. Review the changes made under the Inflation Reduction Act of 2022 to qualify for the clean vehicle credit,” advises the IRS website.