As the year comes to a close, it’s the perfect time to organize all the documents and information you’ll need for an efficient and accurate tax filing season. Here’s a simple checklist focused on charitable contributions, estimated tax payments, and a few important items that can help ensure you receive all the deductions you’re entitled to.
1. Total Your Cash Charitable Contributions
For cash donations, receipts are only needed for contributions over $250, but keeping a single, totaled list is extremely helpful. This type of summary is a precaution against accidental misinterpretations of individual receipts, and helps ensure you receive the correct deduction.
Keep in mind that not all gifts qualify as charitable contributions. Common examples that do not count include:
Donations to certain GoFundMe campaigns (often considered personal gifts)
Raffle ticket purchases
Donations where you received something of value in return
2. Assign Values to All Non-Cash Donations
Non-cash contributions – such as clothing, household items, or furniture – must include a value in order to claim the deduction, so keeping receipts is essential! If you’re unsure how to value donated items, two easy methods are:
Using valuation guides from organizations like Goodwill or The Salvation Army
Applying a general estimate, such as $50-$100 per bag or box (depending on size and condition)
3. Gather Documentation for Estimated Tax Payments
Collect proof of any estimated payments you made during the year. Acceptable forms of documentation include:
Copies of cleared checks (front and back!)
Online payment confirmation emails or PDFs
Bank or credit card statements showing the transactions
4. Business Owners: Review Your Books
If you own a business, take time now to review your records for accuracy. Clean, up-to-date books make tax preparation smoother and reduce the risk of missed deductions!
5. Request Employer Statements for New Income-Based Deductions
Ask your employer for a year-end statement showing any qualified overtime or tip income, which may be needed to calculate some new deductions tied to those income types.
6. Purchased a New American-Built Vehicle? Gather Loan Details
If you bought and financed a new American-built vehicle this year, gather the purchase documents and the total interest paid to ensure any applicable benefits are applied.
7. Using Our Services? Download the Canopy App
Our Canopy Client Portal makes year-end prep much simpler. You can upload documents, receive files from us, and complete electronic signatures all in one place.
If you’re unsure about any of these items or need assistance getting organized, our team is here to help. We’re committed to making tax season as smooth and stress-free as possible.
From all of us at Angolano & Company, we wish you a warm, joyful holiday season and a bright start to the new year.