Tax Season Checklist for Pre-Retirees

Tax season is upon us, bringing the stress of remembering everything we need, following all the rules, and even brushing our teeth every day. Life is already busy and challenging without the added pressure of tax season. To help, we've put together a comprehensive checklist for you to use this tax season.

Key Points – Tax Season Checklist for Pre-Retirees

1. 1. Personal Information:
2. 2. Income Sources (Forms W-2 & 1099)
3. 3. Deductions and Credits
4. 4. Final Checklist Steps
5. Conclusion:

1. Personal Information:

Collect all your personal information in advance to make handling your tax returns easier. Follow this list of some helpful documents you will need throughout the process.

• Social Security Numbers/ITINs: For yourself, spouse, and all dependents
• Valid Photo ID: Driver’s license or state ID
• Bank Account Info: Routing and account numbers for direct deposit of refunds or payments
• Last Year’s Return: Helpful as a reference

Learn More: 5 Podcasts & Articles to Help You Get Ready for Tax Season

2. Income Sources (Forms W-2 & 1099)

We’ve compiled a list of forms that detail your income sources and highlight what to focus on as tax season approaches. Income sources are the primary basis for taxation, so be prepared with the necessary documentation.

• W-2: From all employers
• 1099-INT/DIV: Interest and dividend income
• 1099-NEC/K/MISC: Self-employment, or freelance income
• 1099-R/SSA-1099: Retirement plan distributions or Social Security benefits
• 1099-B/1099-DA: Stock sales, digital assets/crypto, or NFTs
• Schedule K-1: Income from partnerships, S-corps, or trusts

As you approach or enter retirement, it's important to understand that your tax situation may change. Unlike when you were working, you won't receive a W-2 form showing your earnings because you won't have a regular paycheck. However, you will have other sources of income to consider. This is where tax planning and strategies become essential to integrate taxes into your overall financial plan.

Learn More: 6 Tax Strategies to Consider this Tax Season

3. Deductions and Credits

Everyone desires lower taxes or a break, and that's where deductions and credits come into play. It's important to keep your finances well-documented; maintaining your financial records throughout the year, whether digitally or physically, can help you during tax season.

• 1098 Mortgage Interest: Mortgage interest statement and property tax records
• Charitable Donations: Cash and non-cash donation records
• Medical Expenses: Records of unreimbursed medical/dental expenses
• Childcare Expenses: Provider tax ID or SSN, and amount paid
• Education Expenses: Form 1098-T for tuition, 1098-E for student loan interest
• Energy Credits: Receipts for qualified energy-efficient home improvements (solar, windows)
• Retirement Contributions: IRA and 401(k) contribution records (Don’t forget to contribute to your retirement accounts throughout the year)

Tax policies can change with different administrations and other influencing factors, so it’s important to stay informed. This knowledge will help you make the best decisions for yourself and your family.  

Learn More: Planning for Taxes in Your Retirement Plan

4. Final Checklist Steps

Finally, here are some parting tips before we set you free to complete your 2025 taxes!

• File Early: Wait until all documents are received, but file as early as possible to prevent identity theft
• Stay Up to Date on Policy Changes: Tax laws change, know how that affects you
• Check for Life Changes: Marriage, divorce, buying a home, or retirement
• Review for Accuracy: Ensure all names and numbers match IRS records
• Keep Records: Retain copies of filed returns and supporting documents for at least 3 years
• File Electronically: The IRS processes electronic returns faster than paper ones so you get your refund back faster
• Get Help if Needed: Talk with a tax and financial professional if you need help or have questions

Don't be afraid to reach out, ask questions, do your research, and plan for what’s best for you. Tax season can be stressful, and as much as we may not want to, it’s necessary. Embrace the concept of tax planning throughout the year! Tax planning can help you strategize your taxes so that you can save money on your tax bill not just during tax season, but for a lifetime.

Learn More: 5 Last Minute Tax-Tips

Conclusion:

Use this checklist to prepare for this year’s taxes. Don’t let April 15th catch you off guard! Reach out to a professional if you need assistance. Happy Tax Filing!

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