*Collect your income records : Employers/companies send out W-2s and 1099s by the end of January. Review these documents carefully as soon as you receive them; if you find a discrepancy, you have plenty of time to get a corrected document.
*Collect copies of year-end bank, brokerage, and investment account statements: These may contain needed cost-basis, transaction type, gain/loss information. They can also serve as proof of IRA contributions.
*Organize and validate your deductible expenses and eligible tax credits (some may include) :
*Work-related receipts
*Receipts/payment records for charitable donations
*Payment records of eligible medical co-payments
*Education costs/student loan interest
*Mortgage interest statement
*Homebuyer tax credit
*Check out one-time benefits that might apply: Investments in certain energy-efficient products (such as water heaters, central air conditioners, new windows and doors, and insulation) could make you eligible for tax credits this year. If you installed a solar energy system (or other type of renewable energy system) you may be eligible for a tax credit. Details about these types of tax credits are available at: www.energysavers.gov.
**Locate last year’s tax return: You may need to reference important information for this year’s return.