A Comprehensive Guide to Completing Your 2024-2025 Income Taxes

Completing your income taxes can be a daunting task, but with the right documents, files, and information, the process can be much smoother. In this guide, we will outline the essential items individuals and businesses need to gather in order to successfully complete their 2024-2025 income taxes.

For Individuals:

1. Personal Information:

Gather your personal details, including your full name, social security number, date of birth, and contact information.

2. Income Documents:

Collect all the necessary income documents, such as:

• W-2 Forms: These forms are provided by your employer and summarize your annual wages, tips, and other compensation.

• 1099 Forms: If you received income from freelance work, self-employment, or investments, you may receive 1099 forms. These forms report various types of income, such as interest, dividends, and rental income.

• Income from Other Sources: Include any additional income you received during the tax year, such as rental income, alimony, or unemployment compensation.

3. Deduction and Credit Documents:

Ensure you have the necessary documents to claim deductions and credits, such as:

• Form 1098: If you have a mortgage, your lender will provide you with a Form 1098, which reports the amount of mortgage interest you paid during the year.

• Receipts and Documentation: Gather receipts and documentation for any deductible expenses, such as medical expenses, charitable contributions, and education-related expenses.

4. Health Insurance Information:

If you had health insurance coverage during the tax year, gather any relevant forms or documentation, such as Form 1095-A, 1095-B, or 1095-C.

5. Previous Year's Tax Return:

Having your previous year's tax return on hand can be helpful for reference and to ensure consistency in reporting.

For Businesses:

1. Business Information:

Gather your business details, including your business name, tax identification number, and contact information.

2. Income Documents:

Collect all the necessary income documents for your business, such as:

• Profit and Loss Statement: Prepare a profit and loss statement that summarizes your business's income and expenses for the tax year.

• Business Income Forms: If you operate as a sole proprietorship or a single-member LLC, you will report your business income on your personal tax return using Schedule C.

• Business Expense Receipts: Keep track of all business-related expenses and gather the necessary receipts and documentation.

3. Deduction and Credit Documents:

Ensure you have the necessary documents to claim deductions and credits for your business, such as:

• Business Expense Receipts: Gather receipts and documentation for any deductible business expenses, such as office supplies, travel expenses, or advertising costs.

• Form 1099-MISC: If you paid independent contractors more than $600 during the tax year, you may need to issue them a Form 1099-MISC.

4. Payroll Information:

If you have employees, gather payroll information, including W-2 forms for each employee and any relevant payroll tax forms.

5. Previous Year's Business Tax Return:

Having your previous year's business tax return on hand can be helpful for reference and to ensure consistency in reporting.

Remember, it's always a good idea to consult with a tax professional or use tax preparation software to ensure accuracy and maximize your deductions and credits. By gathering all the necessary documents, files, and information, you'll be well-prepared to complete your 2024-2025 income taxes.