4. Total Your Receipts
The receipts you’ll need to supply may vary depending on whether you itemize or take the standard deduction. You should choose whichever produces the larger write-off, but the only way to be certain is, to sum up, your itemized deductions and compare the total to your standard deduction.
For the 2022 tax year, the standard deduction is $12,950 for single taxpayers and $25,900 for married couples filing jointly. In 2023, these amounts will rise to $13,850 for singles and $27,700 for married couples filing jointly.
Look for receipts for medical expenses that are not covered by insurance or paid by another health plan (such as a flexible spending account (FSA) or an HSA), property taxes, and investment-related charges.
All of these are subject to limitations, but if they are significant enough, it may be worthwhile to itemize. If you itemize your deductions, you must also gather any charitable donation backup.
Donations of $250 or more, for example, necessitate a formal acknowledgment from the charity specifying the amount of your gift and that you received nothing (other than perhaps a small item) in return. If you don’t have such a letter, contact the charity and ask for one. More information on charitable deductions can be found in IRS Publication 1771.
If you have business income and costs to report on Schedule C, you must include your books and records, such as QuickBooks or another accounting system, expense receipts, and relevant bank and credit card statements.
5. Provide Your Contact Information
You most likely know your Social Security number (SSN), but do you know the SSN of each dependent you claim? You should write those down (in a safe location, of course), along with any other information your tax preparer may require.
Make a note of the addresses if you own a vacation house or rental property, for example. If you sold a property in the last year, keep track of the dates you bought and sold it, the price you paid for it, and the money you earned from the sale.