Essential Tax Documents that Everyone Should Have

Justin Hearty

Do you know which documents are important when it comes to your tax return? In this article, we will discuss a few essential documents that everyone should be aware of.

When it comes to tax season, having your financial documents organized is like having a roadmap for a smooth journey. Let’s delve deeper into the essential tax documents that can make your filing process a breeze.

W-2s and 1099s

Your income is at the heart of your tax return, and W-2s and 1099s are the MVPs here. These forms provide a detailed breakdown of your earnings, whether you’re a full-time employee or engaged in freelance work. Keep an eye out for them in your mailbox or online portal. Employers are generally required to send out W-2s and 1099s by January 31st of each year. Keep in mind that if January 31st falls on a weekend or holiday, the deadline may be extended to the next business day.

Receipts for Deductions

Deductions play a pivotal role in minimizing your tax liability, acting as the key to unlocking potential savings. These deductions can stem from various aspects of your financial life, such as charitable donations, medical expenses, or business-related costs. The secret to harnessing the full benefit of these deductions lies in the meticulous organization of receipts.

Not only do organized receipts streamline the tax filing process, but they also serve as your safeguard in case of an audit. This proactive approach ensures that you can confidently present evidence of your eligible deductions, maximizing your potential tax savings. So, as you embark on strategic financial planning, consider the organization of receipts not just as a task but as a proactive step toward financial well-being. Your meticulous approach to documentation is not merely paperwork; it’s a strategic move to ensure you make the most of available deductions, making tax season a period of financial opportunity.

Mortgage Interest Statements

If you’re a homeowner, unlocking the full potential of deductions involves paying attention to your mortgage interest statements. These often overlooked documents hold the key to significant savings, offering a clear and detailed breakdown of the interest you’ve paid on your mortgage throughout the year.

Keep in mind, mortgage interest is only deductible when the loan is used to buy, build or substantially improve your home. If you purchased you home before December 16th, 2017, single and joint filers can deduct interest paid on their first $1 million in mortgage debt ($500,000 if you’re married filing separately). If you took your mortgage out after that date, interest paid on the first $750,000 can be deducted ($375,000 if you’re married filing separately).

Lastly, you’ll only be able to claim this interest deduction if you choose to itemize your deductions on your return. For 2023, the standard deduction is $13,850 for single filers and $27,700 for those that are married filing jointly. This means that the mortgage interest you paid, plus any other potential deductions, should exceed the standard deduction for this option to make sense.

When it comes to your tax documents, don’t forget to work with a trusted financial advisor and CPA. They can be your secret weapon for conquering the intricacies of tax planning. Their synchronized efforts don’t just save you money; they empower you to make informed decisions that resonate with your unique financial goals. So, as you embark on this financial voyage, remember – the partnership between you, your financial advisor, and CPA is the compass guiding you toward lasting financial success. Here’s to a future filled with financial clarity and peace of mind!

About Strategic

Founded in 1979, Strategic is a leading investment and wealth management firm managing and advising on total client assets of over $2 billion.

Overview

Disclosures

Strategic Financial Services, Inc. is registered with the Securities and Exchange Commission (SEC) as an Investment Advisor. The term “registered” signifies compliance with regulatory requirements and does not imply a certain level of skill or training.

The information provided on our website, including weekly market commentaries, financial planning articles, and other educational resources, is intended solely for educational purposes. It is designed to offer insights into financial planning and investment management, aiming to enhance understanding of financial concepts, strategies, and market trends. This content should not be interpreted as personalized investment advice or a recommendation for any specific strategy, financial planning approach, or investment product. Financial decisions are deeply personal and should be made considering the individual’s specific circumstances, goals, and risk tolerance. We recommend consulting with a professional financial advisor for personalized advice.

Please be aware that Strategic Financial Services, Inc. does not provide legal or tax advice. The content on this website is not intended to be used as such or as a substitute for legal or tax advice from a licensed professional. We advise seeking guidance from qualified legal and tax advisors regarding these matters.
Investment Risks and Portfolio Management.

The discussion of any investments on this website is for illustrative purposes only and provides no guarantee that the advisor will make any investments with the same or similar characteristics as those presented. The investments identified and described herein do not represent all the investments purchased or sold for client accounts. The selection of representative investments to discuss is based on various factors, including recent company news or earnings releases.

It should not be assumed that any investments discussed were or will be profitable. All investments involve risk, including the potential loss of principal. There is no assurance that investments mentioned will remain in client accounts at the time you view this information.

When index returns are mentioned on this site, they are provided as a general indicator of market conditions and are not representative of any client’s portfolio performance. Indices are unmanaged, do not incur management fees, costs, and expenses, and cannot be invested in directly. Therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.

While index returns are used as a framework to report on general market conditions, they should not be construed as an indicator of future performance of any specific investment or portfolio. Discussion of index returns is intended to provide context and insight, not to suggest that clients will achieve similar results. Each client’s portfolio is managed according to their specific investment goals and financial situation.

The opinions and any forward-looking statements expressed in the articles and videos featured in our resource center are as of the date of publication. These statements are based on current laws, regulations, market conditions, and other relevant factors, including third-party data. Given the dynamic nature of financial and regulatory environments, as well as potential changes in market conditions or economic circumstances, the information provided may become outdated or may no longer be accurate.
We rely on third-party data to form our opinions and projections, which means that these are subject to the same uncertainties that affect all data-dependent analyses. As such, we advise readers to exercise caution and not rely solely on the statements made herein for making financial decisions. It is recommended that investors consult with a professional advisor who can help assess the relevance and accuracy of the content in light of the current economic climate and personal financial situation.

Our website contains links to third-party websites as a convenience to our users. Strategic Financial Services, Inc. does not control, endorse, or guarantee the content found on such sites. We are not responsible for the accuracy, legality, or content of the external site or for that of subsequent links.
Contact the external site for answers to questions regarding its content.
The inclusion of any link does not imply our endorsement of the site, nor does it imply any association with its operators. Use of any such linked website is at the user’s own risk.