Tax Prep Checklist: Deduction Information You Should Gather

When tax season arrives, many taxpayers focus only on income documents — but deductions are just as important. Properly claiming deductions can significantly reduce your taxable income and help you keep more of your hard-earned money.

At Tax & Beyond LLC, we often see people miss valuable tax savings simply because they didn’t track deductible expenses throughout the year. Preparing your deduction information ahead of time makes tax filing smoother, faster, and more accurate.

Here’s a practical checklist of deduction-related documents you should gather before filing your taxes.

IRA and Other Retirement Contributions

Contributions made to retirement accounts may qualify for tax benefits.

Be sure to collect:

• IRA contribution records

• Roth IRA contribution statements

• Employer retirement plan contributions (if applicable)

These contributions may reduce taxable income or provide tax credits depending on eligibility and income limits.

Medical Expenses

Certain medical and healthcare expenses can be deducted if they exceed IRS thresholds.

Examples include:

• Doctor and hospital bills

• Prescription medications

• Health insurance premiums (in some cases)

• Medical equipment or treatment costs

Keep receipts, invoices, and payment records to support your claims.

Property Taxes

Homeowners can often deduct property taxes paid during the year.

Gather:

• Property tax statements

• Payment confirmations

• Escrow account summaries (if taxes are included in mortgage payments)

Accurate records help ensure you receive the deduction you qualify for.

Self-Employed Business Expenses

If you are self-employed, freelance, or operate a small business, tracking expenses is essential.

Common deductible expenses include:

• Office supplies and equipment

• Internet and phone usage for business

• Business travel and mileage

• Marketing and advertising costs

• Professional services

Organized bookkeeping throughout the year makes claiming these deductions much easier.

Charitable Cash Contributions

Donations to qualified charities may be tax-deductible.

Make sure you keep:

• Donation receipts

• Bank or credit card records

• Written acknowledgments for larger donations

Proper documentation is required to claim charitable deductions successfully.

Education Costs

Education-related expenses may qualify for valuable tax credits or deductions.

Examples include:

• Tuition payments

• Course materials and books

• Student loan interest statements

• Form 1098-T from educational institutions

These benefits can help reduce overall tax liability for students and families.

Dependent Care Expenses

If you paid for childcare so you could work or look for employment, you may qualify for a dependent care credit.

Keep records of:

• Daycare or babysitting payments

• Provider name, address, and Tax ID

• Payment receipts or statements

Accurate details are required when claiming this credit.

Mortgage Interest

Homeowners may deduct mortgage interest paid during the year.

You’ll typically receive:

• Form 1098 (Mortgage Interest Statement) from your lender

This deduction can significantly lower taxable income, especially for new homeowners.

Stay Organized and Maximize Your Savings

Preparing deduction information before tax season helps avoid missed opportunities and filing delays. Small expenses add up, and proper documentation ensures you receive every tax benefit available to you.

At Tax & Beyond LLC, we assist individuals and businesses across the United States with tax preparation, accounting, financial consulting, and IRS assistance. Based in Harrisburg, Pennsylvania, we proudly support clients nationwide, with a special focus on serving the Nepali community.

Better records today mean bigger savings tomorrow — with Tax & Beyond LLC.