We have replaced our calendar for the new year and that can only mean one thing – tax season is upon us!  My team and I are gearing up for another productive and efficient busy season. In order to prepare an accurate and timely tax return it is important to be organized. Everyone has different methods for gathering and organizing their tax information, but the more organized a person is the less stressful that the actual tax preparation process will be.  In addition, for those people who engage a paid tax preparer, the fee is generally less when a client is more organized and has a handle on their information than if the client is disorganized and lacks the necessary information and documentation. Part of the information-gathering and retrieval process begins with looking at what may have changed from the prior year. Did the taxpayer move, did their marital status change, did they have children, did they change jobs or did they change bank accounts are just some of the questions to begin answering and documenting. Having a copy of the prior return that was prepared is a good starting point. If there is a new dependent or a new spouse then you will need the exact name as it appears on the Social Security card, the date of birth and the Social Security number for that individual. Improperly capturing and reporting all of the income is one of the largest reasons taxpayers could receive a notice from a taxing authority down the road. Sources of income to include and report may be any of the following: W-2 from your employer(s) 1099-G forms for unemployment income and state or local tax refunds. 1099-INT, 1099-DIV, and 1099-B for interest, dividends, and stock sales. 1099-R and 1099-SSA for retirement distributions and Social Security benefits received. 1099-S for income from the sale of your residence or other property. 1099-Misc for income from rental property. 1099-Q for distributions from a 529 plan or Coverdell ESA. 1099-SA for distributions from a Health Savings Plan. Schedule K-1 for income from a pass-through business, trust or estate. Alimony received (if your divorce or separation agreement is dated on or before Dec. 31, 2018) Records of any transactions involving cryptocurrencies Information on other sources of income, such as gambling winnings, jury duty pay, cancellation of debt, or other income. If you have self-employment income from a side job, or maybe your primary source of income is through self-employment, you need to report that income on a separate schedule. You can claim businesses expenses to lower your taxable income. In order to fully complete this schedule C, you will need to gather: 1099-NEC or 1099-K showing income earned as an independent contractor. Records of all business income and expenses. Documentation for home office expenses including square footage of home and square footage of area used exclusively for business. Records for business assets to be depreciated included date placed in service. Miles traveled for business purposes. Although the majority of taxpayers now take the standard deduction because it is much larger than it once was it is still advisable to compute what your itemized deduction would be in the event that this does exceed the standard deduction. Deductions can reduce your taxable income thereby lowering your income taxes and potentially increasing a refund. If you do itemize you need information pertaining to: Out-of-pocket medical expenses Premiums paid for long-term care insurance Form 1098 showing any mortgage interest, mortgage insurance premiums and points you paid during the tax year Real estate taxes State and local income taxes Charitable donations Documentation of casualty losses if you lived or owned property in a federally declared disaster area. Having system to collect your tax documentation as it comes in through the mail or email and knowing what documents you may need to retrieve online will assist any taxpayer greatly in getting an accurate tax return prepared in the least amount of time and with reduced stress and anxiety. This will also make your tax preparer appreciate you as a client more and potentially reduce the charges as well. Paul Pahoresky is the owner of PRP & Associates. He can be reached at 440-974-1040 extension 214 or at [email protected]. Consult your tax advisor about your specific situation for additional information and guidance on these topics.