Tax Preparation

Tax time is among us and so is gathering all the pesky paperwork to provide for yourself or your CPA for filing. As one can imagine or has experienced, mistakes are made, and things are forgotten. After a long year, taxable events can fly under the radar and slip through the cracks. Below are some taxable events to be mindful of that are often forgotten. 

W2’s – This may seem like an obvious one but if you made a change in jobs within the year an old W2 is often missed. Please make sure you login to your old payroll provider to acquire for tax filing.

1099’s

• Taxable accounts (i.e. brokerage) – interest & dividends (even if you reinvested) + any sale proceeds (gain or loss) must be reported. These taxable accounts would also include company provided accounts where your Restricted Stock Units (RSUs) or Stock Options may have landed post vesting.
• Retirement account distributions – if any distribution was made whether it was to supplement cashflow or satisfy your Required Minimum Distribution (RMD) – these transactions would require you to file a 1099.
• Rollovers – Money is constantly moving, so it’s important to stay on top of it. If you rolled over an old IRA or 401(k) into a new account; don’t forget to grab a 1099-R from the old provider’s website. Even though rollovers to like-to-like accounts (i.e. pretax to pretax) are not taxable, the money movement will still need to be reported.

Deductions

• Charitable contributions – any charitable contributions made during 2024; you will want to provide. Whether it’s a statement from your Donor Advised Fund (DAF) or documentation from gifts given to qualifying institutions, these will need to be reported.
• 529s – some states allow a state tax deduction for contributions made during the year to 529s. Please make sure your CPA is aware of those contributions. Sometime there is a disconnect because there aren’t actual tax documents to provide but it is something that needs to be relayed to make sure you save some dollars on those contributions.

Good luck with tax filing this year and if anyone has any questions, please do not hesitate to reach out via email (contactus@thrivewealth.com), phone (215-376-5530) or our website (www.thrivewealth.com).