Stay Organized With Our Tax-Prep Guide

By Brett Gottlieb

After experiencing another unpredictable year of inflation and market ups and downs, taxes might be the last thing on your mind. However, tax season has arrived, and the more prepared you are, the sooner you can put the stress behind you and focus on what you enjoy.

To help you avoid the frustration of discovering a missing document at the last minute, we’ve put together a handy tax-prep checklist. We invite you to use it to stay organized and make the process as smooth as possible.

Organize Your Personal & Income Information

You’ll start receiving various tax documents virtually or in the mail soon, so instead of letting them sit in a pile on your counter, create an organized system for the following.

Income Information

• Form W-2:These are issued by employers and show your wages and tax withholdings. They are supposed to be mailed by January 31.
• Form 1099-MISC: These report income you have received as an independent contractor or freelancer. You should receive one from each person or company that pays you.
• Form 1099-INT: This form will show any interest you have earned.
• Form 1099-R: This form reports income received from annuities, IRAs, or pensions.
• Form 1099-DIV: Any dividend income you earn is reported on this form.
• Form 1099-B or 1099-S: You will receive these if you have any income from the sale of property or stock.
• Form 1098: You will get this from your mortgage company reporting the interest that you paid.
• Form 1098-T: This reports payments of qualified tuition and expenses.
• Form 1095-A or 1095-C: These forms report your healthcare coverage for the year and your premium tax credit, if applicable.
• Schedule K-1 (Form 1065, Form 1120S, or Form 1041): This reports income for a partner, a shareholder, or an income beneficiary of an estate or trust. The Schedule K-1 normal deadline can be as late as April 15th.

Income-Reduction Documents

• Form 1098-E for student loan interest paid, or loan statements for student loans received
• Form 1098-T for tuition paid or receipts from the institution you or your dependents attend
• Receipts for any qualifying energy-efficient home improvements
• Records of IRA contributions made during the year
• SEP, SIMPLE, and other self-employed pension plan information
• Records of medical savings account (MSA) contributions
• Moving expense records
• Self-employed health insurance payment records
• Alimony you paid if your divorce was finalized before December 31, 2018

Personal Information

If you want your tax-filing experience to be painless, you’ll also want to make sure you have all of your and your dependents’ personal information available, such as:

• Social Security numbers and birth dates
• Copies of last year’s tax return (helpful, but not required)
• Bank account number and routing number, if you wish to have your refund deposited directly into your account

Gather Documents for Itemization

If you’re planning to itemize your deductions this year, you’ll need records to include your totals and provide proof.

Deductions and Credits

• Childcare costs: provider’s name, address, tax ID, and the amount paid
• Education costs: Form 1098-T, education expenses
• Adoption costs: SSN of the child; records of legal, medical, and transportation costs
• Form 1098: Mortgage interest, private mortgage insurance (PMI), and points you paid
• Investment interest expenses
• Charitable donations: cash amounts and official charity receipts
• Medical and dental expenses paid
• Casualty and theft losses: the amount of damage, insurance reimbursements
• Records/amounts of other miscellaneous tax deductions: union dues; unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.)
• Records of home business expenses

Taxes Paid

• State and local income tax
• Real estate tax
• Personal property tax

Updates for the 2025 Tax Year

There are some important things to keep in mind when filing your 2024 tax return. Depending on your filing status, some taxpayers may receive significantly smaller refunds due to these factors:

• The Child Tax Credit is worth a maximum of $2,000 per qualifying child.
• The Earned Income Tax Credit remains at $632 for eligible taxpayers with no children.
• The Child and Dependent Care Credit allows you to claim from 20% to 35% of your care expenses up to a maximum of $3,000 for one person, or $6,000 for two or more people.

Stay on Top of Tax Changes

Those lists cover the details of what you’ll need in front of you to thoroughly fill out your tax return. But there are also a few things to think about that could impact how you file, such as any changes that have occurred this year. Did you add another child to your family? Did one of your children start college? Did you start taking withdrawals from a retirement account? All these changes need to be reflected on your tax return but won’t show up on prior returns.

Specifically, you should stay on top of annual changes to retirement plan contribution limits. For the 2025 tax year, you can put up to $7,000 in any type of IRA. If you are over age 50, that amount goes up by $1,000 with the catch-up contribution. 2025 annual contribution limits for 401(k)s, 403(b)s, and most 457 plans are $23,500. If you are 50 or older, your yearly contribution limit goes up to $31,000. And if you are eligible to contribute to an HSA, you can save $4,300 if you have single medical coverage and $8,550 if you are covered under a qualifying family plan in the year 2025. If you are 55 or older, those limits go up another $1,000. Keep in mind that for IRAs and HSAs, you have until April 15th, 2025, to contribute for the 2024 tax year.

A knowledgeable financial professional can help you understand any tax law changes and how they affect you.

Focus on the Road Ahead

Managing your 2024 tax return accurately and efficiently is essential for financial growth, even when life feels overwhelming. Equally important is taking a step back to consider your overall tax strategy and leverage every available opportunity to reduce your tax burden.

Taxes can be incredibly complex, so partnering with an experienced professional can make all the difference. A skilled financial partner can guide you through effective tax planning, aligning it with your broader financial goals and help you make the most of available strategies.

If you’re ready to take a proactive approach to your taxes but don’t have a trusted advisor yet, our team at Comprehensive Advisor is here to help. We can work with you to create a plan that gives you clarity and confidence in every area of your financial life. Email us at info@ComprehensiveAdvisor.com or call (760) 813-2125 to schedule a consultation!

About Our Advisors

Brett Gottlieb is the founder of Comprehensive Advisor and a financial advisor with nearly two decades of industry experience. He graduated from California State University-Chico with two bachelor’s degrees, in business administration and economics, and is Life Insurance licensed in several states. He is passionate about guiding his clients on retirement income planning, helping each client pursue their specific retirement goals, and defending the assets his clients have worked so hard to achieve. Brett is a California native and currently resides in San Elijo Hills with his beautiful wife and three children.

Our team of qualified professionals have experience in the financial service industry, and our advisors hail from some of the largest independent broker/dealers and banking institutions in the country. They have dedicated their professional careers to creating personalized financial strategies for individuals and families who seek successful retirement planning and currently offer investment advisory services through AE Wealth Management, LLC. Our advisors take a common-sense approach to the planning process and work with clients to create a comprehensive retirement roadmap to help ensure their assets are preserved and they receive the income needed to enjoy their future. Based in Carlsbad, California, they work with clients throughout San Diego County and beyond. Learn more by connecting with Brett on LinkedIn or email them at info@ComprehensiveAdvisor.com.

Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. Insurance products are offered through the insurance business C.A. Financial & Insurance Services.Comprehensive Advisor, LLC is an Investment Advisory practice that offers products and services through AE Wealth Management LLC (AEWM), a Registered Investment Advisor. AEWM does not offer insurance products. The insurance products offered by C.A. Financial & Insurance Services are not subject to investment Advisor requirements. CA Ins. Lic. #6000262.  Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions.  2841252 – 2/25