Your 2016 Personal Tax Return Checklist

The year is almost over and it will soon be time to start thinking about filing our personal tax returns. Here’s a quick checklist of information and documents you’ll need to get it done. Keep in mind that individual scenarios may vary and this list covers the most common items individuals report on their tax returns. Your tax preparer will give you additional guidance that is customized to your specific situation.

Forms Received in the Mail. Starting as early as January, you will start receiving tax documents in the mail and may continue to get them as late as April. February is the most likely month you’ll receive them, however. Some of the more common forms received are as follows:

W-2: Salaries and wages from employment

W-2G: Gambling winnings

SSA-1099: Social security benefits

1095-B: Health coverage

1098: Mortgage interest and property taxes paid

1098-E: Student loan interest paid

1099-DIV: Dividend income

1099-G: Government payments (e.g. unemployment compensation, state income tax refunds)

1099-INT: Interest income

1099-MISC: Miscellaneous income (usually from contract work)

1099-R: Distributions from retirement-type accounts

1099-S: Proceeds from real estate transactions (e.g. sale of your home)

1099-SA: Distributions from a medical savings account (e.g. HSA, MSA)

Medical and Dental Expenses. Even if your medical and dental expenses are below the IRS threshold where none of it is deductible, it may be deductible on your state return. It’s worth your while to total up these expenses for the year. Qualifying expenses may include doctor and dentist visits, radiology, lab work, prescriptions, insurance premiums, and medical devices like crutches and hearing aids. For a more comprehensive list of qualifying expenses, consult IRS Publication 502 HERE.

Charitable Contributions. Gifts to charity are deductible, but documentation is required to substantiate the donation. Canceled checks or bank statements are not sufficient proof. Most charitable organizations automatically mail out letters to donors after year-end, summarizing their contributions for the year. If you do not receive one, call the organization and request one.

Job Expenses. If you pay for job-related expenses that are not reimbursed by your employer, they are deductible on your return. This can include continuing education, uniforms, travel meals, and mileage driven for business purposes. If you claim mileage, you will have to maintain a mileage log to justify the deduction. For a more comprehensive list of qualifying expenses, consult IRS Publication 529 HERE.

Expenses That Are Not Deductible. It’s also important to know what types of expenses aren’t deductible. That way, you’re not wasting time tracking something that will give you no tax benefit. Non-deductible expenses include interest on credit cards or other personal loans; political donations; vitamins and other personal care products that don’t require a prescription; commuting mileage and costs; child support payments; private school expenses; pet-related expenses; home repairs; weight loss programs; and gym memberships.

Final Thoughts. It’s better to have too much information gathered than not enough, especially if you’re handing it off to a paid preparer. Keep all your documents in one place. Also, consider storing forms and receipts electronically. It reduces the paper floating around your home and increases portability. The IRS does accept scanned documents as satisfactory evidence, so an original is not absolutely necessary anymore. Finally, consider using a money management software like Quicken or Mint to track all your personal finances. At year-end, you can generate reports in minutes to obtain all the amounts you need to report on your tax return and some even import directly into self-preparation software like TurboTax.