Tax season doesn’t have to be stressful. Clients of Wealth Dimensions already enjoy a tailored and optimized financial strategy, but ensuring that all necessary documents and overlooked deductions are accounted for can help streamline the tax process.
Use this checklist to ensure you have everything you need before sending information to your accountant and discussing tax-related updates with your advisor.
1. Gather Essential Tax Documents: Avoid Delays & Missed Deductions
One of the easiest ways to streamline tax filing is to ensure all your necessary documents are in order before handing them off to your accountant. A missing form can delay your return or even lead to an incorrect filing, potentially costing you money.
Most tax documents arrive by late January or early February. Take time to review each form to confirm accuracy, especially for investment and income-related 1099s, which can sometimes be reissued with corrections. If you have multiple income sources, rental properties, or business ownership, staying organized is key.
Documents you’ll need include:
- Income forms – W-2s, 1099s, and K-1s for partnerships or business ownership.
- Investment & retirement account forms – 1099-B for capital gains, 1099-R for retirement distributions, and Form 5498 for IRA contributions.
- Deduction-related documents – Mortgage interest (1098), charitable donation receipts, and student loan interest statements.
- Medical & HSA-related forms – HSA contributions, insurance verification forms (1095), and out-of-pocket expenses (if itemizing).
Taking a few minutes to verify these documents now can prevent last-minute scrambling and ensure you’re not leaving money on the table.
2. Confirm Overlooked Tax Deductions & Credits
Even with a well-structured financial plan, some deductions and credits are easy to miss. Reviewing these with your accountant helps ensure you’re maximizing your tax savings.
- Retirement Contributions – If you made Traditional or Roth IRA contributions, ensure they are reported properly.
- Charitable Giving – If you donated appreciated stock or made large donations, confirm proper documentation for deductions.
- Medical Expense Deductions – If your medical expenses exceed 7.5% of your adjusted gross income (AGI), you may qualify for deductions.
- State & Local Tax (SALT) Deductions – If applicable, confirm you’re deducting up to the $10,000 cap.
- Energy Efficiency Credits – If you upgraded your home with solar panels, heat pumps, or other energy-efficient improvements, you may qualify for tax credits.
Your accountant can confirm which deductions apply to your specific situation.
3. Review Capital Gains, Losses, and Investment Tax Forms
While major investment tax efficiency adjustments must be done before year-end, confirming the accuracy of tax forms is still critical.
- Verify 1099-B for capital gains and losses
- Confirm cost basis for sold investments – Ensure gains and losses are reported accurately.
- Long-Term vs. Short-Term Gains – Your tax rate varies based on how long you held an investment.
- Tax-Loss Harvesting (if applicable) – If you sold investments at a loss, confirm how losses offset gains.
These details ensure that your investment-related taxes are reported correctly and efficiently.
4. Plan for Estimated Payments or Withholding Adjustments
If you owed more or received a large refund last year, it may be worth adjusting withholdings or estimated payments for the upcoming year.
- Self-Employed or Business Owners – Confirm quarterly estimated payments are aligned with income.
- Large Refund Last Year? – Consider adjusting W-4 withholdings to avoid overpaying throughout the year.
- Unexpected Tax Bill? – Review whether additional withholdings should be made for this year if you owed more than expected.
Your accountant and advisor can help ensure tax payments are aligned with your financial goals.
5. Look Ahead: Tax Planning for Next Year
Once this year’s return is filed, it’s a great time to refine your tax strategy for the future.
- Adjust Withholding or Estimated Payments – Ensure you’re not overpaying or underpaying taxes.
- Plan Charitable Contributions in Advance – Consider donor-advised funds or strategic giving to maximize deductions.
- Strategize Retirement Distributions – If you’re in or near retirement, plan tax-efficient withdrawals from taxable and tax-advantaged accounts.
- Update Estate Plan & Beneficiaries – Life changes like marriage, children, or inheritance may require updates to your estate plan.
Work with Your Advisor to Stay on Track
Tax season is an excellent opportunity to refine your financial strategy. By staying organized and working with your accountant and advisor, you can help ensure accuracy, minimize tax liability, and plan for long-term financial success.
If you have any questions or need help reviewing your documents, reach out to your Wealth Dimensions advisor!
For informational purposes only. Not intended as investment advice or a recommendation of any particular security or strategy. Information prepared from third-party sources is believed to be reliable though its accuracy is not guaranteed. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. For more information about Wealth Dimensions, including our Form ADV Part 2A Brochure, please visit https://adviserinfo.sec.gov or contact us at 513-554-6000. Please be advised that this material is not intended as legal or tax advice. Accordingly, any tax information provided in this material is not intended and cannot be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.