Cat Spring, Texas

The task of filing income taxes has become more complicated each year. What do you need to correctly file your taxes?

When preparing a Form 1040 (Individual Income Tax Return), especially for clients with sole proprietorships (Schedule C) or rental/pass-through income (Schedule E), the documentation checklist expands significantly.
Here is a comprehensive list of the tax documents and information you may need to provide. A printable version is at the bottom .

1. Identity & Personal Information

Assembling complete information makes preparing taxes much faster , either for doing it yourself or for using a tax preparer, and is required for accuracy.

• Government-Issued Photo ID: Driver’s license or passport for the taxpayer (and spouse, if filing jointly).
• Social Security Numbers (SSNs) or ITINs: For the taxpayer, spouse, and all dependents.
• Dates of Birth: For everyone listed on the return.
• Bank Account & Routing Numbers: For direct deposit of a refund or direct debit for a balance due.
• Prior Year Tax Return (2024 Form 1040): Crucial for verifying Adjusted Gross Income (AGI) and checking for carryovers (like depreciation or capital losses).

2. Schedule C: Self-Employment / Sole Proprietor Information

If you run a business or do freelance/gig work, you must provide tax forms and details of income and expenses, as well as prior year schedule C if applicable.

Income Documents

• Form 1099-NEC: Non-employee compensation (for independent contractors).
• Form 1099-K: Payment card and third-party network transactions (from processors like Stripe, PayPal, or Uber).
• Gross Receipts: Records of cash, checks, or digital payments received that weren’t reported on a 1099.

Expense Records & Deductions

• Business Financial Statements: Profit and Loss (P&L) statement and Balance Sheet.
• Receipts/Invoices: Categorized business expenses (advertising, insurance, supplies, legal fees, etc.).
• Vehicle Log / Mileage Records: Make and model of each vehicle used in the business. Total miles driven for the year, specifically broken down by business miles, commuting miles, and personal miles, plus the date the vehicle was placed in service.
• Home Office Details: Square footage of the dedicated office space versus the total square footage of the home, plus utility bills, home insurance, and rent/mortgage interest records if claiming actual expenses rather than the simple method .
• Health Insurance Premium Records: Cost of premiums paid if self-employed and paying for their own health insurance. If bought from the Marketplace under the business, provide the 1095-A.

3. Schedule E: Supplemental Income & Loss

This applies to clients with rental real estate, royalties, or interests in partnerships, S-corporations, and trusts.

Rental Properties & Royalties

• Form 1099-MISC: Typically received for rental income or royalty payments.
• Annual Rental Income Records: Gross rents received from tenants.
• Rental Expense Records: Categorized by property (e.g., mortgage interest statements (Form 1098), property taxes, insurance, repairs, maintenance, utilities, and management fees).
• Property Settlement Statements (Form HUD-1 / Closing Disclosure): If a property was bought or sold during the tax year (needed to establish or adjust depreciation basis). Basis details will be needed for property placed into service in the current tax year. Prior year Schedule E and including the depreciation schedule details from Form 4562 and the asset worksheet should be included if it was rented in prior years to determine total depreciation taken.

Pass-Through Entities

• Schedule K-1 (Form 1065, 1120-S, or 1041): Issued to the client from Partnerships, S-Corporations, or Trusts detailing their share of income, deductions, and credits.

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4. General Form 1040 Income & Adjustments

Even with self-employment or rental income, clients often have other standard tax documents.

Common Income Forms

• Form W-2: If the client or their spouse also holds a traditional W-2 job.
• Form 1099-INT / 1099-DIV: Interest and dividend income.
• Form 1099-B: Proceeds from broker and barter exchange transactions (stock or crypto sales).
• Form 1099-R: Distributions from IRAs, 401(k)s, or pensions.
• Form 1099-G: Unemployment compensation or state tax refunds.

Deductions & Credits

• Form 1098 (Mortgage Interest Statement): For primary/secondary home mortgage interest and property taxes paid.
• Form 1098-T: Tuition statements for higher education credits.
• Childcare Provider Information: Total paid, plus the provider’s name, address, and EIN/SSN.
• Donation Receipts: Acknowledgement letters from charities for cash or non-cash donations or a list of donations with names , dates, type of donation and amounts or values.
• Form 1095-A: Health Insurance Marketplace Statement (if they bought health insurance through the federal or state exchange).

If you paid Estimated Quarterly Taxes (Federal or State) throughout the year, provide the exact dates and amounts of those payments so they can be credited correctly on the 1040. this information and more can be found in your IRS account.

Free tax checklist download