When it comes to tax season, organization is your best friend. But waiting until the last minute to gather your documents can lead to missing paperwork, delayed filings, and missed credits, especially if you’re claiming dependents or filing as a small business owner.
Instead, make it a habit to keep key documents updated and on file throughout the year. Here are three personal documents you should have ready at all times:
1. Copies of Driver’s Licenses or State IDs
Your preparer may need this to confirm your identity, especially if you’re e-filing or applying for certain tax credits. Keep a clear, legible copy on file for each taxpayer listed on the return.
2. Social Security Cards
You’ll need these for yourself, your spouse (if applicable), and all dependents. Make sure names and numbers match exactly with what’s on file with the Social Security Administration to avoid rejected returns.
3. Proof of Residence for Dependents (Especially if Claiming the EIC)
If you’re claiming the Earned Income Credit (EIC), you must be able to prove that your dependent lived with you for more than half the year. Acceptable documentation can include school records, medical records, or official mail showing your dependent’s name and your address.
Pro Tip:
Create a secure digital folder (or use a physical file system) to store these monthly. Having everything ready saves time, reduces stress, and keeps your return on track when it’s time to file.
