Tax preparation can be a chore. Not only that, it can be, well…taxing. Here is a handy list to help you get your ducks in a row before you start the filing process. Just remember, each person’s tax situation is different, so this listing is a starting point only.

Personal Information and Income

Tax forms always start with personal information and income. So, make sure that you have the following on hand and updated as needed:

Last year’s federal and state (if applicable) tax forms
Your social security number and those for your spouse and claimed children
Your income sources and W-2 forms, if any
Your 1099 forms, if any

Deductions

Deductions can reduce your taxable income, which, in most cases, translated to a lower tax bill. The key to claiming deductions is scrupulous documentation. Here’s a list of some common tax deductions, although there are many, many more:

Certain retirement account contributions
Medical and health costs
Property and mortgage interest
Donations to qualified charities
State and local taxes
Certain educational expenses such as student loan interest
Losses from gambling
Home office deduction

Be aware that for many situations, these deductions must be itemized. Furthermore, for some of these deductions, a certain dollar threshold must be reached in order to take the deduction.

Credits

Credits are even better than deductions because they can be uses dollar-for-dollar against your tax burden. Again, as in the case of deduction, be sure you have proper documentation if you intend to claim any. Here’s a rundown of some of the most popularly used tax credits:

Child and dependant care tax credit
American Opportunity and Lifetime Learning credits
Adoption credit
Earned Income tax credit
Residential energy credit

Doing your taxes doesn’t have to be so taxing! If you need help, consult with a professional such as Increase Lending.