By Daniel Korleski, MBA
After another unpredictable year in the 2020s, it’s likely that the last thing on your mind is taxes. But whether you’re ready or not, tax season is here, and the more prepared you are, the quicker you can relieve that stress and focus on what matters most.
There’s nothing worse than nearing the end of your tax filing only to realize you’ve forgotten an essential document. To help you avoid that, we’ve put together a tax-preparation checklist to keep everything in order before you file.
Organize Your Personal & Income Information
You’ll 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.
Income Information
- Form W-2: These are issued by employers and show your wages and tax withholdings. They are supposed to be mailed by January 31.
- 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.
- Form 1099-INT: This form will show any interest you have earned.
- Form 1099-R: This form reports income received from annuities, IRAs, or pensions.
- Form 1099-DIV: Any dividend income you earn is reported on this form.
- Form 1099-B or 1099-S: You will receive these if you have any income from the sale of property or stock.
- Form 1098: You will get this from your mortgage company reporting the interest that you paid.
- Form 1098-T: This reports payments of qualified tuition and expenses.
- Form 1095-A or 1095-C: These forms report your healthcare coverage for the year and your premium tax credit, if applicable.
- 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.
Income-Reduction Documents
- Form 1098-E for student loan interest paid, or loan statements for student loans received
- Form 1098-T for tuition paid or receipts from the institution you or your dependents attend
- Receipts for any qualifying energy-efficient home improvements
- Records of IRA contributions made during the year
- SEP, SIMPLE, and other self-employed pension plan information
- Records of medical savings account (MSA) contributions
- Moving expense records
- Self-employed health insurance payment records
- Alimony you paid if your divorce was finalized before December 31, 2018
Personal Information
If you want your tax-filing experience to be painless, you’ll also want to make sure you have all of your and your dependents’ personal information available, such as:
- Social Security numbers and birth dates
- Copies of last year’s tax return (helpful, but not required)
- Bank account number and routing number, if you wish to have your refund deposited directly into your account
Gather Documents for Itemization
If you’re planning to itemize your deductions this year, you’ll need records to include your totals and provide proof.
Deductions and Credits
- Childcare costs: provider’s name, address, tax ID, and the amount paid
- Education costs: Form 1098-T, education expenses
- Adoption costs: SSN of the child; records of legal, medical, and transportation costs
- Form 1098: Mortgage interest, private mortgage insurance (PMI), and points you paid
- Investment interest expenses
- Charitable donations: cash amounts and official charity receipts
- Medical and dental expenses paid
- Casualty and theft losses: the amount of damage, insurance reimbursements
- Records/amounts of other miscellaneous tax deductions: union dues; unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.)
- Records of home business expenses
Taxes Paid
- State and local income tax
- Real estate tax
- Personal property tax
Updates for the 2025 Tax Year
There are some important things to keep in mind when filing your 2024 tax return. Depending on your filing status, some taxpayers may receive significantly smaller refunds due to these factors:
- The Child Tax Credit is worth a maximum of $2,000 per qualifying child.
- The Earned Income Tax Credit remains at $632 for eligible taxpayers with no children.
- The Child and Dependent Care Credit allows you to claim from 20% to 35% of your care expenses up to a maximum of $3,000 for one person, or $6,000 for two or more people.
Stay on Top of Tax Changes
Those lists cover the details of what you’ll need in front of you to thoroughly fill out your tax return. But there are also a few things to think about 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’t show up on prior returns.
Specifically, you should stay on top of annual changes to retirement plan contribution limits. For the 2025 tax year, you can put up to $7,000 in any type of IRA. If you are over age 50, that amount goes up by $1,000 with the catch-up contribution. 2025 annual contribution limits for 401(k)s, 403(b)s, and most 457 plans are $23,500. If you are 50 or older, your yearly contribution limit goes up to $31,000. A higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.
And if you are eligible to contribute to an HSA, you can save $4,300 if you have single medical coverage and $8,550 if you are covered under a qualifying family plan in the year 2025. 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, 2025, to contribute for the 2024 tax year.
A knowledgeable financial professional can help you understand any tax law changes and how they affect you.
Plan for What’s Ahead
While things may feel overwhelming right now, it’s crucial to file your 2024 tax return accurately and on time. Equally important is taking a step back to consider the broader picture of your taxes and leveraging every opportunity available to help reduce your tax liability.
Taxes can be complex, so having a professional who truly understands the ins and outs can make all the difference when it comes to making the most of your options. A forward-looking financial partner can guide you through tax planning, aligning it with your overall goals and big-picture financial strategy.
If you’re looking to take a proactive approach to tax planning and don’t yet have a trusted advisor, our team at Cobalt Private Wealth is here to help. We’d love to help you gain confidence in every aspect of your financial plan. Reach out at danielkorleski@cobaltprivatewealth.com or call 719-332-3863 to schedule a meeting.
About Dan
Daniel Korleski is the President & CEO for Cobalt Private Wealth, where he helps his clients grow, manage, and protect their wealth so they can work toward a stronger financial future. With over 30 years of experience in the financial services industry, Dan has served as the managing director for Investment Trust Company, chief investment officer for the Wealth Management Group at American National Bank in Denver, and regional investment manager for the Greater Colorado Region of the Private Bank at Wells Fargo, where he oversaw the management of over $2 billion. In 2008, he was appointed by the mayor of Colorado Springs to the City’s Investment Advisory Committee. Dan holds an MBA in investment management from Midwestern State University in Wichita Falls, Texas, a Bachelor of Science in Finance from Florida State University, and is a member of both the CFA Society Colorado and The Financial Planning Association.
Dan loves to give of his time to his community and is currently serving as the Board Chair of Catholic Charities of Central Colorado and oversees the Homebound Ministry at St. Paul Catholic Church. He has also served as Chair of the Board of Trustees of Pikes Peak Hospice Foundation, President of the Broadmoor Rotary Club, and Vice President of the Board for the Pikes Peak Chapter of Trout Unlimited. Dan was born and raised in Spain and is fluent in Spanish. To learn more about Dan, connect with him on LinkedIn.
