Preparing paperwork for tax season isn’t anyone’s favorite task — true.

But when everything is organized and done step by step, you save time, stress, and often money.

Here’s a clear, easy-to-follow guide to help you get your documents ready without panic — especially useful for individuals, freelancers, and small business owners in the Monroe, Matthews, Waxhaw, Indian Trail, and greater Union County, NC area.

1. Organize and Categorize Your Documents: Order Saves You Time

Rule number one: everything should have its place.

The easier your documents are to find, the faster (and more accurately) your tax return gets prepared.

Create folders (paper or digital) based on categories:

Income

• W-2
• 1099-NEC
• 1099-K
• Bank statements
• PayPal/Venmo reports
• Brokerage statements

Expenses

• Receipts for fuel, materials, tools, advertising, rent, repairs, etc.

Deductions & Credits

• Charity donation receipts
• Medical expenses
• Education payments
• Home office documentation

Investments & Loans

• 1099-DIV, 1099-INT
• Mortgage/tuition form 1098
• Crypto reports
• Brokerage statements

Prior Years

• Previous tax returns
• IRS correspondence

Tip: Create a small folder named “Missing Forms” — add notes on anything that hasn’t arrived yet.

2. Make a Checklist: It Prevents Missed Documents

A simple checklist saves a ton of time. Here’s the basics:

• W-2
• 1099-NEC / 1099-K
• 1099-INT / 1099-DIV
• 1098 (mortgage/tuition)
• Bank statements
• Business expense receipts
• Charity donation receipts
• Investment & crypto documents

Correct approach: check that everything arrived and compare amounts with bank statements.

Incorrect approach: waiting until April and searching in a rush.

3. Scan and Store Everything Digitally

Scan important papers and store them in the cloud (Google Drive, Dropbox, etc.).

Digital documents are easier to share with your tax preparer.

Correct: name files clearly — 2025_W2_CompanyName.pdf or 2025_Expense_Fuel_March.pdf.

Incorrect: one huge file called “receipts.pdf” with 100 unreadable pages.

Tip: keep original receipts for at least 3 years (better 7). The IRS may request proof.

4. Double-Check Dates and Amounts — A Very Common Error

When entering or reviewing your info:

• verify that form amounts match your bank statements;
• double-check dates (December purchases sometimes post in January);
• ensure your SSN/name on all 1099s is correct.

Example: If a client issues a 1099 with the wrong amount — contact them and request a corrected form (1099-NEC or 1099-MISC) before the end of January.

5. Business Owners: Keep a Separate “Business 2025” Folder

If you’re self-employed or own an LLC/S-Corp in Union County, create a dedicated folder for:

• invoices
• vendor payments
• payroll reports
• business bank statements

Correct: business payments should come from a business account/card.

Incorrect: paying with a personal card and trying to justify it later.

6. Don’t Forget Special Categories: Charity, Home Office, Vehicle

Charity

Only donations with receipts count, so no receipt = no deduction.

Home Office

You need:

• square footage calculations,
• proof the space is used exclusively for business.

Vehicle

Keep a mileage log: dates, business purpose, miles. You can choose between actual expenses or the standard mileage rate.

Tip: track mileage in your phone through a simple app or spreadsheet.

7. What to Do If You’re Missing a Document

• Check email and online accounts (brokerage, payment platforms, IRS Online).
• Contact the employer or client — sometimes forms simply weren’t sent yet.
• If the form never arrives, keep proof of attempts to obtain it.

Example: A freelancer didn’t receive a 1099. After calling the client, he checked his IRS online account — the form was already there.

8. Break the Work Into Steps and Don’t Do Everything in One Day

Here’s a simple preparation plan:

• Day 1: Gather income forms (W-2, 1099s).
• Day 2: Collect all receipts and expenses.
• Day 3: Scan and upload documents.
• Day 4: Reconcile amounts and prepare questions for your tax preparer.
• Day 5: Final checklist and send everything.

This reduces stress and helps avoid mistakes.

9. “Right vs. Wrong” — Quick Examples

Right: keep signed receipts for large purchases.

Wrong: snap a dark, blurry photo where numbers are unreadable.

Right: store business card statements separately.

Wrong: mix personal and business transactions.

Right: maintain a “missing forms” list and request documents early.

Wrong: wait until April and hope for the best.

10. When It’s Time to Contact a Professional

If you have multiple income sources, an LLC/S-Corp, payroll, investments, or foreign accounts — it’s smart to consult a CPA or Enrolled Agent.

Even a 20–30 minute review can save you from costly mistakes.

If you’re unsure, take clear photos of your documents and send them to a specialist — they can usually tell quickly if something is missing or inconsistent.

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