Your 2024 Tax Preparation Checklist

By Brett Gottlieb

Can you believe the first quarter of the year is nearly over? The past year flew by, and here we are again facing tax season.

As we like to do every year, we have curated a list of the essential documents you need to gather when preparing to file your taxes. We have also included some information on updates for the 2023 tax year. We hope this will help you as you move forward with your financial plan this year.

Without further ado, here is your 2024 tax prep checklist!

Personal & Income Information Documents

By now you may have already received most or all of your tax documents virtually or in the mail. Rather than letting them sit in a pile on your counter, create an organized system using a file folder or similar document organizer to keep all your tax documents readily available. Here are some examples of the documents you may need to have depending on your type of employment.

Income Information

• 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

In addition to your income-related documents, you will also want to 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

Itemization Documents

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 2023 Tax Year

There are some important changes to keep in mind when filing your 2023 tax return. Depending on your filing status, some taxpayers may receive significantly smaller refunds due to these changes.

• The Child Tax Credit is worth a maximum of $2,000 per qualifying child.
• The Earned Income Tax Credit moved up to $600 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.

Additional Considerations

Aside from the list of documents needed, you also want to consider if any changes have occurred in your personal, work, or financial situation this year that may affect how you file.

• 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.

It’s also important to stay on top of annual changes to retirement plan contribution limits. For the 2024 tax year, you can put up to $7,000 in any type of IRA ($6,500 for the year 2023). If you are over age 50, that amount goes up by $1,000 with the catch-up contribution. 2024 annual contribution limits for 401(k)s, 403(b)s, and most 457 plans are $23,000. If you are 50 or older, your yearly contribution limit goes up to $30,500. And if you are eligible to contribute to an HSA, you can save $4,150 if you have single medical coverage and $8,300 if you are covered under a qualifying family plan in the year 2024 (up from $3,850 and $7,750 for the 2023 tax year, respectively). 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, 2024, to contribute for the 2023 tax year.

How We Can Help

While you may be tempted to procrastinate on this necessary but tedious task, it’s important to get your 2023 tax return filed properly and accurately. This list may seem a little overwhelming, but we hope it helps you feel more organized for this year’s tax season.

If you want to be proactive about tax planning and you don’t have a trusted advisor yet, we at Comprehensive Advisor will work collaboratively with a qualified CPA to build a well-thought-out strategy designed to help you address your financial needs and concerns. This typically includes:

• Financial planning software to make informed decisions
• Required minimum distributions planning
• Roth conversion analysis
• Tax-deferral strategies
• Reviewing account types, titling and beneficiary designations

If you’re ready to feel confident in your financial future, set up an appointment today by emailing us at info@ComprehensiveAdvisor.com or calling (760) 813-2125.

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. This material is intended to provide general information and is believed to be reliable, but accuracy and completeness cannot be guaranteed. Investing involves risk, including the potential loss of principal. Any references to protection benefits, safety, security, lifetime income, etc., generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. 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. Please remember that converting an employer plan account to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA. 2250084- 02/24