The term “income tax” refers to a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction.

Income taxes are a source of revenue for governments. They are used to fund public services, pay government obligations, and provide goods for citizens. In addition to the federal government, many states and local jurisdictions also require that income tax be paid.

• Individual Income Tax
  Individual income tax is also referred to as personal income tax. This type of income tax is levied on an individual’s wages, salaries, and other types of income.  Taxable income is your adjusted gross income (AGI) minus any itemized deductions or your standard deduction.
• Business Income Tax
  Businesses also pay income taxes on their earnings. The IRS taxes income from corporations, partnerships, self-employed contractors, and small businesses. Generally, the difference between their business income and their operating and capital expenses is considered their taxable business income.
• State and Local Income Tax
  Local income tax is a type of tax some local governments impose on people who live or work in a specific area. The local income tax is in addition to federal income and state income taxes.

Personal Information:

• Full name, Social Security Number (SSN), and date of birth for yourself and any dependents you’re claiming.

Income Statements:

• W-2 forms from employers showing wages, salaries, and tips earned.
• 1099 forms for other income sources such as freelance work, dividends, interest, or rental income.
• Statements of income from investments, retirement accounts, or rental properties.
• Documentation of any unemployment benefits or Social Security income received.

Expense Records:

• Receipts or records of deductible expenses, such as mortgage interest, property taxes, medical expenses, charitable contributions, and unreimbursed business expenses.
• Records of any eligible education expenses or student loan interest paid.
• Documentation of any eligible childcare expenses.

Tax Deductions and Credits:

• Documentation of any tax deductions or credits you plan to claim, such as education expenses, childcare expenses, retirement contributions, or energy-efficient home improvements.

Health Insurance Coverage:

• Form 1095-A, 1095-B, or 1095-C if you had health insurance coverage through the Health Insurance Marketplace, an employer, or a government program like Medicare or Medicaid.

Previous Year’s Tax Return:

• Copy of your previous year’s tax return for reference, especially if there are carryover amounts or if you’re using the same tax preparer.

Bank Account Information:

• Bank account information if you choose to receive your refund via direct deposit.

Tax Identification Numbers:

• Tax identification numbers (TINs) for any child or dependent you’re claiming.

Tax Forms:

• Any other relevant tax forms or documents provided by the IRS or state tax authorities.