The Ultimate Tax Checklist to Help You Prepare for Taxes

tax preparation checklist excel

Unfortunately, the IRS doesn’t take tardiness or failure to pay lightly. To keep your business cash flow in good shape, consider creating a tax calendar. However, staying prepared year-round can help make filing easier when tax season comes around. We’ve compiled the essential steps you need to follow to streamline your small business tax prep and filing process. Being prepared for tax season will help you expedite your tax return preparation process, and quite possibly reduce your taxes.

Taxpayers can start their search with the IRS Directory of Preparers

Deductions help reduce your taxable income, which generally means a lower tax bill. The key to claiming deductions is documentation — not only can it protect you if you’re ever audited, but it can also cut your tax bill by helping you remember what to claim. You don’t have to itemize to benefit from some deductions.

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What Documents Do I Need to File Taxes?

Students can claim a deduction for tuition and fees they paid, as well as for interest paid on a student loan. The IRS won’t accept your deduction claim without Form 1098-T, which shows your education transactions. Terms and conditions, features, support, pricing, and service options subject to change without notice. We can help you with extension filing before tax deadlines to avoid penalties. Remember also to report the withdrawal of excess contributions as income, because they are subject to a ten percent early withdrawal penalty.

tax preparation checklist excel

Itemized tax deductions and credits

You can import financial data from various sources, such as bank statements or expense reports, directly into your spreadsheet. This reduces the time spent on manual data entry and minimizes the chance of transcription errors. These education-related credits can save you quite a bit of money. As with the tuition and fees deduction, Form 1098-T is required to claim either. If your mortgage payment includes an amount escrowed for property taxes, that will be included on the Form 1098 your lender sends you.

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tax preparation checklist excel

Did you know that Pennsylvania has the highest state fuel tax? This is followed by California and the state of Washington, all north of 50 cents per gallon. For a full list of the 2022 federal income tax brackets, see the worksheet  in our Tax Prep Checklist Template called 2022 Tax Brackets. Income taxes are based on the money your business makes and are paid on both a federal and state level.

As a small business owner, it’s your responsibility to ensure that you meet your federal and state tax obligations. Whether you run a sole proprietorship, partnership, S corporation, or C corporation, these tax preparation checklist excel are the five main types of taxes your business may be responsible for. Fortunately, a tax preparation checklist can make light of the situation and help you discover what’s needed to proceed when ready.

  • To ensure your generosity pays off at tax time, keep your receipts for charitable donations.
  • Fortunately, a tax preparation checklist can make light of the situation and help you discover what’s needed to proceed when ready.
  • We’ve compiled the essential steps you need to follow to streamline your small business tax prep and filing process.
  • You can also use this time leading up to tax day to make any necessary removal of excess contributions if you contributed too much.
  • Did you know that Pennsylvania has the highest state fuel tax?
  • Generally, you’ll need the following documentation to claim potentially valuable tax credits.

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1095-A if you are insured by Covered CA or if you received credit from the healthcare.gov marketplace. Join our online community and receive the first chapter of Student Loan Solution absolutely FREE. Get unlimited advice, an expert final review and your maximum refund, guaranteed. Using a program or app to track your finances is much easier than going through your checks and bank statements for the entire year. Get the right tax solution to resolve tax debt ahead of time with year-round tax assistance. Get help navigating your tax resolution options with tax specialist who have helped resolve over $1 billion in IRS tax debt.

tax preparation checklist excel

  • Gather all the documents that confirm the money you received during the previous year.
  • Join our online community and receive the first chapter of Student Loan Solution absolutely FREE.
  • If you run a C Corporation and you think you’ll owe more than $500 in taxes, you have to pay estimated taxes every quarter.
  • However, tax return preparers have differing levels of skills, education and expertise.

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