{"id":3417,"date":"2024-02-27T20:49:32","date_gmt":"2024-02-27T20:49:32","guid":{"rendered":"https:\/\/franklegan.com\/?p=3417"},"modified":"2024-02-27T20:50:59","modified_gmt":"2024-02-27T20:50:59","slug":"tax-preparation-checklist-2024","status":"publish","type":"post","link":"https:\/\/franklegan.com\/tax-preparation-checklist-2024\/","title":{"rendered":"Your Tax-Preparation Checklist"},"content":{"rendered":"<p><i><span style=\"font-weight: 400;\">By Frank Legan<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">After dealing with high inflation rates over the past year, the thought of paying taxes might be the last thing you want to prioritize. However, tax season is upon us, and being well prepared can help alleviate stress in the long run while freeing up time for activities you enjoy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To avoid the frustration of discovering missing documents at the last minute, we\u2019ve crafted a tax-preparation checklist to <\/span><a href=\"https:\/\/franklegan.com\/our-services\/financial-planning-retained-advisor\/\"><span style=\"font-weight: 400;\">help you stay organized<\/span><\/a><span style=\"font-weight: 400;\"> and feel confident all your necessary paperwork is in order.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Organize Your Personal &amp; Income Information<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">You\u2019ll start receiving various tax documents virtually or in the mail soon, so instead of letting them sit in a pile on your counter, create an organized system for the following.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Income Information<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form W-2:<\/span> <span style=\"font-weight: 400;\">These are issued by employers and show your wages and tax withholdings. They are supposed to be mailed by January 31.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 1099-INT: This form will show any interest you have earned.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 1099-R: This form reports income received from annuities, IRAs, or pensions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 1099-DIV: Any dividend income you earn is reported on this form.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 1099-B or 1099-S: You will receive these if you have any income from the sale of property or stock.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 1098: You will get this from your mortgage company reporting the interest that you paid.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 1098-T: This reports payments of qualified tuition and expenses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 1095-A or 1095-C: These forms report your healthcare coverage for the year and your premium tax credit, if applicable.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Income-Reduction Documents<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 1098-E for student loan interest paid, or loan statements for student loans received<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 1098-T for tuition paid or receipts from the institution you or your dependents attend<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Receipts for any qualifying energy-efficient home improvements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Records of IRA contributions made during the year<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SEP, SIMPLE, and other self-employed pension plan information<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Records of medical savings account (MSA) contributions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Moving expense records<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Self-employed health insurance payment records<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Alimony you paid if your divorce was finalized before December 31, 2018<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Personal Information<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you want your tax-filing experience to be painless, you\u2019ll also want to make sure you have all of your and your dependents\u2019 personal information available, such as:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Social Security numbers and birth dates<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Copies of last year\u2019s tax return (helpful, but not required)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bank account number and routing number, if you wish to have your refund deposited directly into your account<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Gather Documents for Itemization<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you\u2019re planning to itemize your deductions this year, you\u2019ll need records to include your totals and provide proof.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Deductions and Credits<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Childcare costs: provider\u2019s name, address, tax ID, and the amount paid<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Education costs: Form 1098-T, education expenses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adoption costs: SSN of the child; records of legal, medical, and transportation costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 1098: Mortgage interest, private mortgage insurance (PMI), and points you paid<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investment interest expenses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Charitable donations: cash amounts and official charity receipts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Medical and dental expenses paid<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Casualty and theft losses: the amount of damage, insurance reimbursements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Records\/amounts of other miscellaneous tax deductions: union dues; unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Records of home business expenses<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Taxes Paid<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">State and local income tax<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Real estate tax<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Personal property tax<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Updates for the 2023 Tax Year<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are some important changes to keep in mind when filing your 2023 tax return. Depending on your filing status, some taxpayers may receive significantly smaller refunds due to these changes.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Child Tax Credit is worth a maximum of $2,000 per qualifying child.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Earned Income Tax Credit moved up to $600 for eligible taxpayers with no children.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Child and Dependent Care Credit allows you to claim from 20% to 35% of your care expenses <\/span><a href=\"https:\/\/www.nerdwallet.com\/article\/taxes\/child-and-dependent-care-tax-credit\"><span style=\"font-weight: 400;\">up to a maximum of $3,000 for one person<\/span><\/a><span style=\"font-weight: 400;\">, or $6,000 for two or more people.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Stay on Top of Tax Changes<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Those lists cover the details of what you\u2019ll need in front of you to thoroughly fill out your tax return. But there are also <\/span><a href=\"https:\/\/franklegan.com\/how-to-maximize-your-tax-savings\/\"><span style=\"font-weight: 400;\">a few things to think about<\/span><\/a><span style=\"font-weight: 400;\"> 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\u2019t show up on prior returns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specifically, you should stay on top of annual changes to retirement plan contribution limits. For the 2024 tax year, you can put up to $7,000 in any type of IRA ($6,500 for the year 2023). If you are over age 50, that amount goes up by $1,000 with the catch-up contribution. 2024 annual contribution limits for 401(k)s, 403(b)s, and most 457 plans are $23,000. If you are 50 or older, your yearly contribution limit goes up to $30,500. And if you are eligible to contribute to an HSA, you can save $4,150 if you have single medical coverage and $8,300 if you are covered under a qualifying family plan in the year 2024 (up from $3,850 and $7,750 for the 2023 tax year, respectively). If you are 55 or older, those limits go up another $1,000. Keep in mind that for IRAs and HSAs, you have until April 15th, 2024, to contribute for the 2023 tax year.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/franklegan.com\/bio\/frank-legan\/\"><span style=\"font-weight: 400;\">A knowledgeable financial professional<\/span><\/a><span style=\"font-weight: 400;\"> can help you understand any tax law changes and how they affect you.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Plan for the Future<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Despite the current challenges, it\u2019s essential to file your 2023 tax return correctly and with precision. Equally important is taking a broader perspective on taxes so you leverage all available tools to minimize your tax burden.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Navigating taxes can be a complex process, which is why <\/span><a href=\"https:\/\/franklegan.com\/bio\/frank-legan\/\"><span style=\"font-weight: 400;\">partnering with a knowledgeable professional<\/span><\/a><span style=\"font-weight: 400;\"> can be an invaluable resource for maximizing opportunities. An experienced financial advisor can assist with tax planning that\u2019s tailored to your overall goals and financial strategy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re proactive about tax planning and don\u2019t yet have a trusted advisor, our team at <\/span><a href=\"http:\/\/www.franklegan.com\"><span style=\"font-weight: 400;\">Cedar Brook Group<\/span><\/a><span style=\"font-weight: 400;\"> is here to build confidence in every aspect of your financial plan. And because we believe in the \u201cHumanity Factor,\u201d numbers are second to our clients\u2019 needs and wants. Schedule an appointment today by contacting us at 440-683-9213 or <\/span><a href=\"mailto:flegan@cedarbrookfinancial.com\"><span style=\"font-weight: 400;\">flegan@cedarbrookfinancial.com<\/span><\/a><span style=\"font-weight: 400;\"> or <\/span><a href=\"https:\/\/calendly.com\/franklegan\/meeting-with-frank-legan?month=2021-11\"><span style=\"font-weight: 400;\">schedule a complimentary introductory call online<\/span><\/a><span style=\"font-weight: 400;\">!<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">About Frank<\/span><\/h3>\n<p><a href=\"https:\/\/franklegan.com\/bio\/frank-legan\/\"><span style=\"font-weight: 400;\">Frank Legan<\/span><\/a><span style=\"font-weight: 400;\"> is Partner, Financial Advisor, and member of the Forward Look Committee at Cedar Brook Group, one of the largest independent wealth management firms in Northeast Ohio. Frank spends his days designing and implementing personalized financial planning strategies for corporate executives, closely held business owners, artists, families, and retirees. He focuses on lifetime income strategies, investment advice, and estate planning services. He also works with businesses to develop strategic and succession planning strategies. Frank has a Bachelor of Arts in Political Science from the University of Dayton, as well as a Master of Public Administration focused on municipal management from Cleveland State University. Prior to joining Cedar Brook Group, Frank was a financial advisor in the private client group at Merrill Lynch and with NatCity\/PNC Investments. Frank is active in his community, serving on various councils, boards, and committees. Frank serves as Chairman Emeritus of the Board of Directors for Catholic Charities Diocese of Cleveland. When he\u2019s not working, you can find Frank spending time with his wife, Laura, their daughter, Reese, and their beloved collie, Charlie. Frank and his family are volunteers at St. Francis of Assisi church in Gates Mills. To learn more about Frank, connect with him on<\/span><a href=\"https:\/\/www.linkedin.com\/in\/franklegan\/\"> <span style=\"font-weight: 400;\">LinkedIn<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><br \/>\n<i><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Securities offered through Cadaret, Grant &amp; Co., Inc., an SEC Registered Investment Advisor and member FINRA\/SIPC. Advisory services offered through Cadaret, Grant &amp; Co., Inc. and Cedar Brook Group, an SEC Registered Investment Advisor. Cadaret, Grant &amp; Co. and Cedar Brook are separate entities. <\/span><\/i><b><i>Please remember that securities cannot be purchased, sold or traded via e-mail or voice message<\/i><\/b> <b><i>system<\/i><\/b><i><span style=\"font-weight: 400;\">. Please contact our office at <\/span><\/i><b><i>440.683.9213<\/i><\/b><i><span style=\"font-weight: 400;\"> should you need assistance in placing a trade. This email transmission and any documents, files or previous email messages attached to it may contain information that is confidential or legally privileged. If you are not the intended recipient, you are hereby notified that you must not read this transmission and that any disclosure, copying, printing, distribution, or any action or omission of this transmission is strictly prohibited. If you have received this transmission in error, please immediately notify the sender by telephone at <\/span><\/i><b><i>440.683.9213<\/i><\/b><i><span style=\"font-weight: 400;\"> or return and delete the original transmission and its attachments without reading or saving in any manner.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Frank Legan After dealing with high inflation rates over the past year, the thought of paying taxes might be the last thing you want to prioritize. However, tax season is upon us, and being well prepared can help alleviate stress in the long run while freeing up time for activities you enjoy.\u00a0 To avoid [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":3420,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Your Tax-Preparation Checklist","_seopress_titles_desc":"Tackle tax season with our preparation checklist. Frank Legan is a financial advisor with Cedar Brook Group, based in Cleveland, Ohio.","_seopress_robots_index":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[9],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/franklegan.com\/wp-json\/wp\/v2\/posts\/3417"}],"collection":[{"href":"https:\/\/franklegan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/franklegan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/franklegan.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/franklegan.com\/wp-json\/wp\/v2\/comments?post=3417"}],"version-history":[{"count":1,"href":"https:\/\/franklegan.com\/wp-json\/wp\/v2\/posts\/3417\/revisions"}],"predecessor-version":[{"id":3421,"href":"https:\/\/franklegan.com\/wp-json\/wp\/v2\/posts\/3417\/revisions\/3421"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/franklegan.com\/wp-json\/wp\/v2\/media\/3420"}],"wp:attachment":[{"href":"https:\/\/franklegan.com\/wp-json\/wp\/v2\/media?parent=3417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/franklegan.com\/wp-json\/wp\/v2\/categories?post=3417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/franklegan.com\/wp-json\/wp\/v2\/tags?post=3417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}