To ensure a smooth and error-free tax return filing, take a moment to double-check for these commonly overlooked details. These small but important items often cause delays or trigger IRS inquiries:
🔹 Missing Forms – Use your prior-year tax return as a reference to ensure you’ve received all necessary W-2s and 1099s. If a form is missing, reach out to the issuer immediately to avoid potential IRS mismatches and audits.
🔹 Dependent Information – If you had a new dependent in 2024, make sure to provide their full name, Social Security number, and birth date. If you share custody, confirm in advance who will be claiming the dependent to prevent filing conflicts.
🔹 Cost Basis Details – If you sold investments or real estate, you’ll need to report the original purchase price to calculate capital gains or losses. Review your brokerage statements carefully to confirm this information is included and accurate.
🔹 Schedule K-1s – If you’re a partner in a business or own shares in an S corporation, you’ll receive a Schedule K-1 detailing your share of the company’s profit or loss. Pay attention to Box 17 (Code V) for S corporations and Box 20 (Code Z) for partnerships, as they relate to the Qualified Business Income Deduction.
🔹 Digital Asset Transactions – If you’ve bought or sold cryptocurrency or other digital assets, be sure to provide details on the cost basis and sales prices of each transaction for accurate tax reporting.
🔹 Unfamiliar Tax Forms – If you receive a tax document but aren’t sure why, investigate before filing. For example, a retirement account distribution form could be taxable unless it was part of a qualified rollover, in which case proper documentation is required to avoid unnecessary tax liabilities.
🔹 Unsigned E-File Forms – Both you and your spouse must review and sign e-file authorization forms before your tax return can be submitted. The sooner this is completed, the sooner your return can be processed.
By double-checking these frequently missed details, you can help ensure a hassle-free tax filing experience!