2024 Tax Filing Made Easy – Key Documents & Expert Filing Tips

Get Ready for Tax Season with Confidence

As April approaches, many people start preparing for their 2024 tax return. Whether you are filing your own taxes or working with a professional, having the right information and documents in place can make the process smoother. To provide expert insights, we spoke with Taylor Wolverton, an in-house tax strategist at Peace of Mind Wealth Management. Taylor specializes in helping individuals understand their tax situations and develop strategies for both short-term and long-term tax benefits.

In this guide, we’ll walk through everything you need to know about tax season preparation, including essential documents, common mistakes to avoid, and key filing strategies to help you secure your retirement while minimizing your tax burden.

Essential Tax Documents You Need to Collect

Tax season comes with a flood of documents arriving in the mail or electronically. Knowing which ones are essential can help you avoid common tax mistakes and prevent IRS issues down the road.

W-2 and 1099 Forms

• W-2: If you were employed at any point in 2023, you will receive a W-2 form from your employer, detailing your income and withholdings.
• 1099 Forms: If you earned non-salary income, you may receive different types of 1099 forms:
  • 1099-INT: Reports interest earned from savings accounts, CDs, or money market accounts.
  • 1099-DIV: Shows dividends earned from investments.
  • 1099-B: Reports capital gains or losses from selling securities.
  • 1099-R: Issued for distributions from retirement accounts, IRAs, or pension plans.
  • 1099-SSA: Documents Social Security benefits
  • 1099-S: Required if you sold real estate and need to report capital gains.

Important Tip: If you don’t receive a 1099 form, reach out to the financial institution where your investments or income sources are held.

Other Crucial Tax Forms

• Form 5498: Issued for IRA contributions and rollovers. This form does not impact tax filing deadlines since it arrives in May.
• 1098 Form: Reports mortgage interest paid, which is crucial if you are itemizing deductions.
• K-1 Form: If you are part of a partnership, S-corp, or trust, expect to receive a Schedule K-1, but note that these forms often arrive later in the tax season.
• Estimated Tax Payments: If you made quarterly tax payments, be sure to report them to avoid IRS penalties.
• Closing Statements for Real Estate Transactions: If you sold property, keep all documentation to report gains or losses accurately.

Standard vs. Itemized Deductions – Which One is Best?

One of the biggest decisions when filing taxes is whether to take the standard deduction or itemize deductions.

• Standard Deduction for 2024:
  • $30,000 for married couples filing jointly
  • $15,000 for single filers
  • Increased deduction available for seniors over 65
• Itemized Deductions Include:
  • Medical expenses (subject to limitations)
  • State and local taxes (SALT deductions capped at $10,000)
  • Property taxes and mortgage interest
  • Charitable donations

If your total deductions exceed the standard deduction, itemizing may provide better tax savings.

Qualified Charitable Distributions (QCDs)

If you are 70 ½ or older, you can make Qualified Charitable Distributions (QCDs) directly from your IRA to a qualified charity, potentially reducing your taxable income. However, the IRS does not automatically label these distributions as non-taxable, so be sure to inform your tax preparer to claim the correct tax benefit.

Should You File Taxes Yourself or Work with a Professional?

Many individuals try self-filing to save money, but it’s essential to understand when hiring a tax professional is a smarter choice.

Common Tax Mistakes When Filing Alone

• Forgetting to report 1099 income – The IRS receives a copy of all issued tax forms, and missing one can result in an IRS letter.
• Incorrectly reporting rollovers – 401(k) rollovers generate a 1099-R form, but if reported incorrectly, it could appear as taxable income.
• Overlooking itemized deductions – Many self-filers fail to maximize their eligible deductions, resulting in higher taxes owed.
• Errors in self-employment or rental income reporting – Complex tax situations (such as rental properties, partnerships, or businesses) require specialized tax handling.

When to Consider a Professional:

• If you have multiple sources of income (investments, self-employment, rental properties).
• If you own a business or receive K-1 income.
• If you want personalized tax-saving strategies.

How Long Should You Keep Tax Documents?

The IRS recommends keeping tax-related documents for at least three years. However, certain records, such as real estate or stock purchase history, should be retained indefinitely to establish cost basis for tax reporting.

Tax Filing Deadlines & Key Dates for 2024

Stay ahead of deadlines to avoid penalties:

• April 15, 2024 – Tax filing deadline and first quarter estimated tax payment due
• June 17, 2024 – Second quarter estimated tax payment due
• September 16, 2024 – Third quarter estimated tax payment due
• January 15, 2025 – Final quarter estimated tax payment due

Final Thoughts on 2024 Tax Filing

Filing your taxes doesn’t have to be stressful. By organizing your documents, understanding your deductions, and considering expert help when needed, you can make tax season easier and optimize your financial future.

If you have any tax-related questions, we invite you to schedule a complimentary call with our team at Peace of Mind Wealth Management.

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If you want to understand all this a little better, we offer a complimentary phone call that you can schedule with us on our website. If we can’t answer all your questions in just 15 minutes, we’ll guide you to the next steps to find the answers you need.

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