Individual Tax Checklist

• Retirement account contributions. You can deduct contributions to a traditional IRA or self-employed retirement account. Just be sure to stay within the contribution limits. 

• Educational expenses. Students can claim a deduction for tuition and fees they paid, as well as for interest paid on a student loan. The IRS won’t accept your deduction claim without Form 1098-T, which shows your education transactions. Form 1098-E has details on your student loan. 

• Medical bills. Medical costs could provide tax savings, but only if they total more than 7.5% of adjusted gross income for most taxpayers. 

• Property taxes and mortgage interest. If your mortgage payment includes an amount escrowed for property taxes, that will be included on the Form 1098 your lender sends you. That document will also show how much home loan interest you can claim on Schedule A. 

• Charitable donations. To ensure your generosity pays off at tax time, keep your receipts for charitable donations. The IRS could disallow your claim if you don’t have verification. 

• Classroom expenses. If you’re a school teacher or other eligible educator, you can deduct up to $250 spent on classroom supplies. 

• State and local taxes. You can deduct various other taxes, including either state and local income or sales taxes (up to $10,000, including property taxes). You don’t need receipts for the sales tax; the IRS provides tables with average amounts you can claim. The tax on a major purchase, however, can be added to the table amount, so keep those receipts. 

Note that state income taxes paid should be on your W-2, but remember to add any state estimated taxes you paid during the year. 

Credits are deductions’ more valuable cousins: They provide dollar-for-dollar cuts in any tax you owe. But as with deductions, you need documentation to claim them. Here are some popular tax credits: 

• American Opportunity and Lifetime Learning credits. These education-related credits can save you quite a bit of money. As with the tuition and fees deduction, Form 1098-T is required to claim either. 

• Child Tax Credit. The standard Child Tax Credit is worth up to $2,000 per child dependent. If you added to your family through adoption, you might be eligible for additional tax credits. 

• Retirement savings contributions credit (also known as the Saver’s Credit). Contributions to a 401(k), similar employer-sponsored plan or an IRA might allow you to claim this credit.