By Brian Bloxom, ChFEBCSM
After another unpredictable year, the last thing you probably want to think about is taxes. But the sooner you get organized, the sooner you can set that stress aside and focus on the things you enjoy. To make it easier, we’ve put together this tax-preparation checklist: your guide to making sure nothing slips through the cracks and you have everything ready when it’s time to file.
Following this checklist not only helps you stay organized, it can also highlight opportunities to optimize your tax situation and avoid last-minute surprises. With a clear plan in place, you can approach tax season with confidence and peace.
Organize Your Personal & Income Information
You’ll start receiving various tax documents virtually or in the mail soon (if you haven’t already), so instead of letting them sit in a pile on your counter, create an organized system for the following.
Income Information
- Form W-2: These are issued by employers and show your wages and tax withholdings. The deadline for these to be mailed is January 31.
- Form 1099-MISC: These report income you have received as an independent contractor or freelancer. You should receive one from each person or company that pays you over $600.
- Form 1099-INT: This form will show any interest you have earned.
- Form 1099-R: This form reports income received from annuities, IRAs, or pensions.
- Form 1099-DIV: Dividend income you earn in taxable accounts is reported on this form.
- Form 1099-B or 1099-S: You will receive these if you have any income from the sale of property or stock.
- Form 1098: You will get this from your mortgage company reporting the interest that you paid.
- Form 1098-T: This reports payments of qualified tuition and expenses.
- Form 1095-A or 1095-C: These forms report your healthcare coverage for the year and your premium tax credit, if applicable.
- Schedule K-1 (Form 1065, Form 1120S, or Form 1041): This reports income for a partner, a shareholder, or an income beneficiary of an estate or trust. The Schedule K-1 normal deadline can be as late as April 15th.
Income-Reduction Documents
- Form 1098-E for student loan interest paid, or loan statements for student loans received
- Form 1098-T for tuition paid or receipts from the institution you or your dependents attend
- Receipts for any qualifying energy-efficient home improvements
- Records of IRA contributions made during the year
- SEP, SIMPLE, and other self-employed pension plan information
- Records of medical savings account (MSA) contributions
- Moving expense records
- Self-employed health insurance payment records
- Alimony you paid if your divorce was finalized before December 31, 2018
Personal Information
If you want your tax-filing experience to be painless, you’ll also want to make sure you have all of your and your dependents’ personal information available, such as:
- Social Security numbers and birth dates
- Copies of last year’s tax return (helpful, but not required)
- Bank account number and routing number, if you wish to have your refund deposited directly into your account
Gather Documents for Itemization
If you’re planning to itemize your deductions this year, you’ll need records to include your totals and provide proof.
Deductions and Credits
- Childcare costs: provider’s name, address, tax ID, and the amount paid
- Education costs: Form 1098-T, education expenses
- Adoption costs: SSN of the child; records of legal, medical, and transportation costs
- Form 1098: Mortgage interest, private mortgage insurance (PMI), and points you paid
- Investment interest expenses
- Charitable donations: cash amounts and official charity receipts
- Medical and dental expenses paid
- Casualty and theft losses: the amount of damage, insurance reimbursements
- Records/amounts of other miscellaneous tax deductions: union dues; unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.)
- Records of home business expenses
Taxes Paid
- State and local income tax
- Real estate tax
- Personal property tax
Updates for the 2025 Tax Year
There are some important things to keep in mind when filing your 2025 tax return. Depending on your filing status, some taxpayers may receive significantly smaller refunds due to these factors:
- The Child Tax Credit is worth a maximum of $2,200 per qualifying child, but reduced if your MAGI exceeds $200,000 filing single or $400,000 filing jointly.
- The Earned Income Tax Credit remains at $649 for eligible taxpayers with no children.
- The Child and Dependent Care Credit allows you to claim from 20% to 35% of your care expenses up to a maximum of $3,000 for one child, or $6,000 for two or more children.
Stay on Top of Tax Changes
Those lists cover the details of what you’ll need in front of you to thoroughly fill out your tax return. But there are also a few things to think about that could impact how you file, such as any changes that have occurred this year. Did you add another child to your family? Did one of your children start college? Did you start taking withdrawals from a retirement account? All these changes need to be reflected on your tax return but won’t show up on prior returns.
It’s important to stay on top of annual changes to retirement plan contribution limits.
IRA Contribution Limits
- For 2025, the IRA contribution limit is $7,000. If you are 50 or older, you can contribute an additional $1,000, for a total of $8,000.
- You have until April 15, 2026, to make IRA contributions for the 2025 tax year.
- IRA contribution limits increase to $7,500 in 2026, with an additional catch-up limit of $1,100.
401(k), 403(b), and 457 Plan Contribution Limits
- For 2025, the annual contribution limit for 401(k), 403(b), and most 457 plans is $23,500. Those age 50 and older can contribute an extra $7,500, bringing their total limit to $31,000.
- For 2026, the contribution limit increases to $24,500, with a catch-up contribution of $8,000 for those 50 and older, making the total $32,500.
- The “super” catch-up provision applies to individuals ages 60 to 63, allowing them to contribute $11,250 instead of $7,500. These limits apply to both 2025 and 2026.
HSA Contribution Limits
- For 2025, health savings account (HSA) contribution limits are $4,300 for individuals and $8,550 for families. If you are 55 or older, you can contribute an additional $1,000.
- For 2026, these limits increase to $4,400 for individuals and $8,750 for families. The additional $1,000 catch-up for those 55 and older remains the same.
- Just like IRAs, HSA contributions for the 2025 tax year can be made until April 15, 2026.
By keeping up with these changes, you can maximize your retirement savings and take full advantage of tax-advantaged contributions each year. A knowledgeable tax professional can help you understand any tax law changes and how they affect you.
Your Partner Beyond the Tax-Preparation Checklist
Feeling stressed about taxes? You’re not alone. It’s true that taxes can get complicated fast, which is why it helps to have a professional in your corner. A financial advisor can team up with your tax advisor to confirm your strategy fits your bigger financial picture and long-term goals. And a simple tax-preparation checklist can help you get your 2025 return done accurately while also taking advantage of opportunities to reduce your tax liability.
If you haven’t partnered with a trusted advisor yet, we at Sentinel Wealth Partners are here to help. Let’s make tax season less stressful and give you confidence in your financial plan. Reach out to us today by calling our office at 703-832-0164, sending an email to brian@sentinelwealthpartners.com, or using our online calendar.
About Brian
Brian Bloxom is an Independent Financial Advisor, Chartered Federal Employee Benefits ConsultantSM (ChFEBCSM) and Chartered Retirement Planning Counselor℠, CRPC® professional now celebrating 30-plus years in business. He founded Sentinel Wealth Partners to serve retirees, individuals approaching retirement, and individuals managing complex retirement plans such as company plans or federal benefits plans. His expertise and dedication to helping his clients achieve their goals make him a trusted resource that will help you feel confident in your customized retirement plan. Brian’s mission is to be available to his clients—all the time. He’s here to solve your problems, relieve your anxiety, and give you optimism for retirement. Because ultimately, your retirement should be about well-deserved enjoyment, and not about stress or anxiety.
Brian has also been serving as the President of the Salvation Army Advisory Council in his area for the last five years. In his free time, you can find him spending time with his wife, Jessica, and their two sons, Spencer and Preston. In addition to being actively involved in recreation sports coaching for kids, he enjoys serving in his community, golfing, and relaxing at his vacation home at Lake Anna, VA. To learn more about Brian, connect with him on LinkedIn.
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Sentinel Wealth Partners and Cambridge are not affiliated. Sentinel Wealth Partners is not engaged in the securities business. Cambridge does not offer tax or legal advice.