Reflection of the week
Your Individual Return Checklist
Happy Friday, all!
Tax season is in full swing. Many of you wrapped up your business returns last Monday—congratulations! That’s no small feat. But while it may be tempting to take a breather, it’s important to keep the momentum going. Now is the time to turn your attention to your individual tax return.
Why Gathering Your Documents Now Matters
Getting your documents in order early streamlines the process for your tax preparer and benefits you as the taxpayer. The more organized you are, the more efficiently your preparer can work—and the more likely they are to spot valuable deductions and credits that you might otherwise overlook. Additionally, early preparation reduces stress, prevents last-minute scrambling, and gives you more time to plan for any tax payments due or refunds you may receive.
Having clear and complete documentation is even more essential for mission-driven entrepreneurs, who often blur the lines between personal and business finances. The better your records, the easier it is to ensure everything is categorized correctly, and you avoid red flags that could trigger audits or delays.
What to Gather
Your tax preparer will need various documents to complete your return. These may include:
- Personal Information – Social Security numbers for yourself, your spouse, and any dependents
- Income Documents – W-2s, 1099s (including 1099-NEC, 1099-MISC, 1099-DIV, etc.), K-1s from your business or investments
- Expense and Deduction Records – Mortgage interest statements, student loan interest, medical expenses, and charitable donations (if applicable)
- Health Insurance Information – Forms 1095-A, B, or C, especially if you received coverage through the Marketplace
- Retirement Contributions and Distributions – Forms 5498 and 1099-R
- State and Local Tax Payments – Especially if you made estimated payments throughout the year
- Bank Account Information – For direct deposit of any refund
Stay One Step Ahead
Preparing now gives you the clarity and confidence to make informed financial decisions for the rest of the year. It also frees up time for what truly matters—running your business and making an impact.
Let’s keep that tax season momentum going!
Questions of the Week
- What systems do you currently have to keep your personal and business financial documents organized throughout the year—and where is there room for improvement?
- How might early preparation of your individual tax return benefit your personal financial goals and the long-term sustainability of your mission-driven business?
- What emotions come up when thinking about tax season, and how can you shift your mindset to view this time as an opportunity for financial clarity and empowerment?
Tool of the Week
To help you stay organized, I’ve created a comprehensive Individual Tax Document Checklist you can download and use as a guide. It covers what you need to gather so you and your tax preparer can get your return filed quickly and accurately.