The Ultimate Tax Preparation Checklist for Individuals and Small Businesses

(A Deductions & Co. Guide)

Introduction

Tax season doesn’t have to be stressful — with the right preparation, it can actually be an opportunity to save money and gain financial clarity.

At Deductions & Co, we believe preparation is power. Whether you’re filing as an individual or running a small business, organizing early helps you file accurately, maximize deductions, and avoid last-minute headaches.
Here’s your ultimate tax preparation checklist to make this season simple, efficient, and profitable.

1️⃣ Gather Your Personal Information

Start with the essentials — these documents verify your identity and ensure your return is processed smoothly.

✅ Personal Documents

• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)

• Last year’s tax return (for reference)

• Driver’s license or state-issued ID

✅ Dependent Information

• SSNs or ITINs for dependents

• Childcare provider’s name, address, and Tax ID (for child-care credits)

2️⃣ Collect Your Income Documents

Your income forms form the backbone of your tax return. Make sure you have every source of income covered.

✅ For Individuals

• W-2 forms from all employers

• 1099 forms for freelance, contract, or gig work

• 1099-INT or 1099-DIV (interest or dividends)

• 1099-G (unemployment or state refunds)

• 1099-R (retirement distributions)

• 1099-B (investment sales)

• SSA-1099 (Social Security benefits)

✅ For Small Business Owners / Self-Employed

• 1099-NEC or 1099-K (from clients or platforms)

• Records of gross receipts or sales

• Documentation for returns, allowances, or discounts

• Any other business income (commissions, royalties, affiliate earnings, etc.)

3️⃣ Organize Expense and Deduction Records

Tracking deductions is where the real savings happen. Keep these expenses neatly documented year-round.

✅ Common Deductible Business Expenses

• Office supplies, software, and subscriptions

• Business meals (with receipts and purpose)

• Vehicle mileage log or actual vehicle costs

• Rent or home-office deduction

• Utilities and internet (business portion)

• Advertising and marketing expenses

• Professional services (bookkeeping, legal, consulting)

• Education or certifications related to your trade

• Insurance (liability, professional, or health for self-employed)

✅ Personal Deductions & Credits

• Medical and dental expenses

• Charitable contributions

• Mortgage interest and property taxes (Form 1098)

• Student loan interest (Form 1098-E)

• Tuition or education expenses (Form 1098-T)

• Retirement contributions (IRA, 401(k), SEP, SIMPLE)

• Childcare or dependent-care costs

4️⃣ Review Business Financials (For Small Businesses)

Before filing, make sure your books reflect the full year accurately.

✅ Key Financial Documents

• Profit & Loss (Income) Statement

• Balance Sheet

• Bank and credit-card reconciliations

• Payroll summaries and contractor payments

• Asset purchase or sale records (for depreciation)

💡 Pro Tip:
Export clean reports directly from QuickBooks, Xero, or Wave to save hours of manual prep.

5️⃣ Verify Estimated Tax Payments

If you’ve made quarterly payments, confirm they’re all properly recorded.

✅ Have Ready

• Dates and amounts of each IRS and state payment

• Receipts or confirmation numbers

• Adjustments or carry-forwards from prior years

Accurate records here help you avoid penalties and ensure you don’t overpay.

6️⃣ Prepare Year-End Forms (Employers & Contractors)

If you hire employees or contractors, double-check that compliance tasks are done on time.

✅ Year-End Filings

• W-2s for employees

• 1099-NEC for contractors (due January 31)

• Payroll tax reports and payments

• Business license renewals or annual reports

7️⃣ Account for Major Life Changes

Life events often change your filing status or deduction eligibility. Update your records if you’ve experienced:

✅ Common Changes

• Marriage or divorce

• New dependents (birth, adoption, care of a relative)

• New home purchase or sale

• Job or business changes

• Retirement or withdrawals from retirement plans

• Education enrollment or graduation

8️⃣ Review and Plan Ahead

Once everything’s gathered, meet with your tax professional to:

• Identify missed deductions or credits

• Discuss next year’s estimated payments

• Evaluate retirement and investment strategies

• Explore business entity or structure changes for tax efficiency

💡 Deductions & Co Tip:
We help clients transform tax time into a planning session — not a paperwork scramble.

🗂 Tax Preparation Checklist Summary

✅ Final Thoughts

Tax preparation doesn’t begin in April — it begins with organization and proactive strategy throughout the year. The more prepared you are, the smoother (and more profitable) your filing season will be.

At Deductions & Co, we make tax preparation effortless for individuals and small businesses by combining personalized support, accurate filing, and year-round strategy.

💬 Ready to Get Organized?

Start now.
👉 Download Your Personalized Tax Prep Checklist or schedule your complimentary financial review today with Deductions & Co.