What documents do I need to file taxes?

Many business owners wonder, “What documents do I need to file taxes?” With so many tax documents to consider, it can be confusing even to the most seasoned business owner. Let’s walk through a tax document checklist and some common questions.

Essential tax document checklist for tax preparation.

If you want to make tax preparation a bit more streamlined, have at least these documents ready:

1. Financial statement. This document shows the financial health of your business. It typically includes a balance sheet, income statement, and cash flow statement.
2. Capital-asset activity. A capital-asset activity document shows assets you’ve bought to document expenses and depreciation.
3. Vehicle use. Keep a document that shows your vehicle operating expenses like fuel, mileage, and maintenance. You can get a deduction on your taxes for every mile driven.
4. Summary of home-office expenses. Many businesses operate from home, which means you can deduct a percentage of your home expenses. You’ll need a summary of what you’ve paid for mortgage/rent, insurance, utilities, repairs, and maintenance.
5. Form 1098. If you’re wondering, “What forms do I need to file my taxes,” a 1098 should be part of that list if you work from home. Form 1098 shows the mortgage-interest and property tax payments you’ve made on your home throughout the year. You’ll need it to calculate your total business costs for working from home.

This list isn’t exhaustive. Explore a longer checklist guide to taxes, and consult your accountant to find out exactly what you’ll need to complete your tax preparations.

What tax forms do I need depending on entity type?

When it comes to filing taxes, the type of entity you have will determine the specific tax forms you need to submit. Here’s a brief overview of the tax forms required for different types of entities:

• Sole proprietorship. As a sole proprietor, you report your business income and expenses on your personal tax return using Schedule C (Form 1040). You may also need to file Schedule SE if you have self-employment income.
• LLC (Single-member). A single-member LLC is typically treated as a disregarded entity for tax purposes. Like a sole proprietor, you’ll report business income and expenses on Schedule C (Form 1040) and possibly Schedule SE.
• LLC (Multi-members). An LLC with multiple members is generally taxed as a partnership by default. The LLC should file Form 1065, the partnership tax return, and provide each member with a Schedule K-1 (Form 1065) to report their share of the income or loss. Individual members will then include this information on their personal tax returns.
• S corporation. An S corporation files Form 1120S, the S corporation tax return. The corporation does not pay income tax itself; instead, shareholders report their share of the income or loss on their personal tax returns using Schedule K-1 (Form 1120S).
• C corporation. A C corporation is a separate tax-paying entity. It files Form 1120, the corporate tax return, reporting its income and expenses. Shareholders do not report corporate income on their personal tax returns unless they receive dividends or capital gains from the corporation.
• Partnership. A partnership files Form 1065, the partnership tax return, reporting the partnership’s income and expenses. Each partner receives a Schedule K-1 (Form 1065) to report their share of the partnership’s income or loss on their personal tax return.

Are there additional documents needed to file taxes if I have foreign assets?

Yes, if you have foreign assets or income, there may be additional documents required when filing your taxes. Here’s a brief overview:

• Foreign bank accounts. If you have a financial interest in or signature authority over foreign bank accounts, you may need to file FinCEN Form 114, also known as the Report of Foreign Bank and Financial Accounts (FBAR). This form is separate from your tax return and is used to report foreign accounts exceeding certain thresholds.
• Foreign financial assets. If the total value of your specified foreign financial assets meets certain thresholds, you may need to file Form 8938, Statement of Specified Foreign Financial Assets, with your tax return. This form provides information about your ownership of foreign assets, such as bank accounts, securities, and other financial assets.
• Foreign earned income. If you earned income from foreign sources, you may be eligible for the Foreign Earned Income Exclusion or the Foreign Tax Credit, which both require filing additional forms. Form 2555, Foreign Earned Income, or Form 1116, Foreign Tax Credit, would need to be completed, depending on your circumstances.
• Passive foreign investment companies (PFICs). If you own shares in a PFIC, you may need to file Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund. This form is used to report income, distributions, and other relevant details related to PFICs.

It’s important to note that the reporting requirements for foreign assets and income can be complex, and the specific forms and thresholds may vary depending on your circumstances. It’s advisable to consult with a tax professional who specializes in international tax matters to ensure compliance with all applicable reporting requirements.

Merge documents needed to file taxes into one PDF.

Once you compile all the necessary documents, it’s a good idea to digitize your tax documents and merge them into a single PDF to simplify sending and viewing.

It’s easy to merge your documents into one PDF using an online PDF editor like Adobe Acrobat online services.

Visit the Acrobat online website. Upload the PDF documents you want to merge. Rearrange PDF pages however you like, and then download the merged PDF. This way, all your tax documents will be in one easy-to-manage file you can send to your accountant or other tax preparer.

Discover what more you can do with Adobe Acrobat to simplify organizing your tax documents.