Income Tax Documents and Forms Needed To File IRS Return

There is a huge list of documents that are needed for filing taxation in 2014. Now is the right time to get prepared. Along with the documents, you also have to make it 100% sure that you have all the IRS forms that are needed.

Before moving on to the checklist of documents and forms, I would like you to consider the following steps and read these other important resources.

1. Read 5 things to bring to tax preparer’s office.
2. Add the H&R Block checklist and this checklist in file of your important documents, or attach it to the outside of the folder.
3. When you receive or locate tax documents, make sure to check them off the list and place them in your folder.
4. Remove anything on the list that you do not need for your tax situation.
5. Add a page to your documents file to enter all the information and amounts that are not already available on other documents. For example, you may not find bank routing number for direct deposit on any of the documents you have gathered for tax preparation.

Forms you Need for Filing IRS Tax Return

Here are the most common forms a tax payer needs to file return. all documents are in pdf version, you’ll need acrobat reader software on your computer to open. All documents are linked to IRS official site.

W-4 Employer tax withholding (not required during tax  return filing, but needed for tax purpose when you join work or significant life event happens)

W-9 Tax payer identification (This is required by businesses and financial institutions for reporting income to IRS)

1040 individual income tax return (Additional forms for 1040 – additional forms)  

1040-A : for individuals with limited type of income

1040-ES : for income not subjected to withholding (self employment type income)

1040-EZ : for single or joint return with no dependent

If you need help choosing the right 1040 for your situation, read Interactive Tax Assistant or Which Form – 1040, 1040-A, or 1040-EZ

You can get all above forms and a lot more from IRS site itself.

Checklist Of Documents you need for IRS Tax Return

Following is the checklist of documents and information that you need to provide to get prepared for your tax return. However, not all listed documents will apply to you and, therefore, you need to pick only those which apply to you.

Personal Information

The Internal Revenue Service (IRS) wants to know the exact person who is filing tax return and person(s) who are in it. In order to do so, you will be required to present the following information.

• Social Security Numbers (SSNs)
• Your date of birth
• Your spouse’s date of birth and
• Dates of birth of your dependents.

All of the above mentioned information about you and your family is a must to get prepared for tax return. In case of any wrong or missed information, it can become more difficult for you.

Information About Your Source Of Income

Similar to your personal information, you will need to submit information about your income as well. However, you do not have to fill out or submit all listed below forms. All you need to do is to find the ones which apply to you depending on your source of income.

• You will need forms W-2 for you and your spouse if you earn your bread and butter from jobs.
• If your source of income is Investment, then you may have to submit various forms 1099(-DIV, -INT, -B, etc.), K-1s, stock option information.
• Forms 1099-G for income from state and local income tax refunds and/or unemployment.
• Alimony received.
• In case, your source of income is buying and selling properties, then you will have to provide information such as the original cost and cost of improvements, escrow closing statement, cancelled debt through form 1099-C.
• If you are availing SSN benefits, then you will have to fill and submit forms SSA-1099.
• Payer’s SSN, address and principal and interest collected during the year, along with form 6252, are required for prior year installment sale information.
• You will have to provide size of home, size of office, home expenditure and office expenditure, if you are using your home for business purpose.
• You need to submit forms 1099-R, 8606, in case of IRA/pension distributions.
• In case your source of income is business or farming, then you will have to submit capital equipment information and profit/loss statement.
• If you earn by renting out your property, then you will have to provide with profit/loss statement and information about rental property suspended loss.
• You also have to provide information about the income that you get from Health Savings Account (HSA), jury duty, scholarships, gambling winnings, etc.

Adjustments To Your Actual Income

Following is the list of thing that can help you reduce the amount of your income that is taxed. As a result of it, the amount you owe can be decreased or your tax refund can be increased.

• SIMPLE, Keogh, SEP and other pension plans for self-employed individuals.
• Individual Retirement Account (IRA) contributions.
• Health insurance payments, if self-employed.
• Interest on student loan.
• MSA contributions.
• Educator expenses
• Moving expenses.
• Energy credits.
• Alimony paid

Listed Tax Credits And Deductions

In order to lower the tax burden on individuals, the government provides you with a number of tax credits and deductions which means that you will be going to save more money. If you want to make the most of the credits and deductions you deserve, then you must get done the following documentation

• Money you have spent on education can be deducted by filling up forms 1098-T.
• Deduct the amount you have paid as home mortgage interest and points by submitting forms 1098.
• Reduce child care costs by providing your name, address, tax id and amount paid.
• Reduce the cost of adopting a child (medical, legal and transportation costs) by providing his/her SSN.
• In case of casualty and theft losses, the insurance reimbursement and amount of damage can be diminished.
• The amount or Fair Market Value (FMV) of the donations you have given to charities can be used to deduct tax.
• Investment interest expenses.
• Medical and dental expenses.
• Advance Child Tax Credit payment.
• Other miscellaneous tax deductions include union dues, unreimbursed employee expenses (uniforms, publications, travel, supplies, continuing education, seminars, etc.)

All Your Sales Receipts

This is critical when you itemize your return. You have to put total sales tax paid for the year. In case of an audit, you may need to prove the amount you claimed in your tax return is in fact the amount you paid. It’s critical that you store all your sales receipts. Traditionally our parents and grand parents used to store all receipts in a box.

In today’s world, I use a tool – ShoeBoxed which stores digital copies of your receipts till you want. Every once in a while you need to mail them physical receipts, in their prepaid envelops. You can store up to 50 receipts per month for $9.95 /month. You may sign-up now and cancel before you’re charged if you don’t like, at least try them out today.

We are a big family, we buy a lot of items throughout the year. On top of that, we always itemize our return. Naturally, so, Shoeboxed is a great service to our family and get us protected from IRS audit. I’d highly recommend ShoeBoxed to you, as I did with my friends.

Taxes You Have Already Paid

Do not forget to document the already paid taxes properly. Documentation of already paid taxes will keep you away from overpaying.

• State and local income taxes paid.
• Personal property taxes – vehicle license fee based on value.
• Real estate taxes paid.

Other Requisite Information

Along with the above mentioned information, you may require following information for your tax return.

• Roughly calculated tax payment made during the year, past year reimbursement applied to recent year, and any other amount paid with an addition to file.
• Information required for direct deposit such as your account and routing numbers.
• Information of foreign bank account including the location and name of bank, account number and the highest value of account during the year.
• Another web resource on the same topic, you may need to consider.

Lastly, you also need your last year’s tax return. For eFiling, you’ll need previous year’s PIN number as well.