Tax season is here, and a little preparation can make filing your 2025 return smoother. As part of January’s “Get Organized” theme, this week we will focus on collecting and sorting your documents, including those needed for new provisions from the One Big Beautiful Bill Act (OBBB).
Essential Documents to Collect
Make sure you gather these key records for your 2025 tax return:
- Income Forms: W-2s (wages), 1099s (freelance, interest, dividends), and K-1s (partnerships or S-corps). Please note, your W-2s may not reflect qualified overtime compensation until 2026. Please give your tax accountant year-end paystubs to document overtime pay for the new deduction
- Retirement and Conversion Records: Records for IRAs contributions, Roth conversions, and qualified charitable distributions (QCDs)
- Charitable Donation Records: Receipts for cash, non-cash gifts, and volunteer expenses
- Education and Home Forms: 1098 (mortgage interest, student loan interest), 1098-T (tuition), medical expense receipts, and dependent care statements
- Investment and Property Records: Brokerage statements for capital gains/losses, property tax receipts, and home-related expenses
- Estimated Tax Payment Records: Proof of quarterly payments made for the 2025 tax year. Please note, the Q4 estimated payment was not due until January 2026 but needs to be included on your 2025 return
- OBBBA-Specific Documents:
- Proof of qualified tips (e.g., W-2 or employer records for service industry workers)
- Year-end paystubs detailing FLSA overtime premiums for the qualified overtime compensation deduction
Organize Your Records
Sort your documents efficiently to streamline filing:
- Digital Organization: Create labeled folders in secure cloud storage or on your computer for categories like “Income” and “Deductions”
- Paper Organization: Use labeled folders or envelopes by category (e.g., “W-2s/Paystubs,” “Charitable”). Scan copies for backups to prevent loss
Quick Tips
- Check for corrected forms (e.g., amended W-2s or 1099s) before filing, especially for OBBBA-related income like tips
- Provide your year-end paystubs to your tax preparer to document overtime pay for the OBBBA deduction, as W-2s may not include this for 2025
- Discuss year-round strategies like Roth conversions, QCDs, large charitable gifts, or OBBBA deductions (e.g., senior or child tax credit) with your preparer to maximize tax benefits
- Retain supporting evidence for OBBBA claims (e.g., paystubs, age proofs) in case of IRS inquiries
Action Step
Dedicate a few minutes this week to begin gathering and organizing your 2025 tax documents. Use last year’s return as a checklist to ensure you’ve covered all categories, especially new OBBB provisions. Embrace the “Get Organized” theme to file with confidence and ease!