Prepare the 2024 return with a complete account list, retirement transaction records, Social Security forms, investment basis and payment confirmations.
February 3, 2025 · Financial Forte Staff
Historical article: prepared retrospectively using information available as of February 3, 2025.
The tax form you are most likely to miss may be the one that never arrives in the mail. A former employer's pension portal, a bank switched to electronic delivery or an IRA transaction that needs extra explanation can leave a gap in the records. Retirement often changes the document list rather than making it shorter.
For the 2024 return being prepared in 2025, build the file from the accounts and transactions you actually had. Use last year's return as a starting point, then add changes. Receiving a familiar stack of forms does not establish that the file is complete or that every reported distribution is fully taxable.
Make an account list before checking off forms
List the pension payers, retirement accounts, banks and taxable investment accounts used during 2024, including accounts closed or transferred during the year. Note whether each institution delivers forms by mail or electronically. A closed account can still have reportable activity.
Look for Forms 1099-R for retirement distributions and pension income, SSA-1099 for Social Security, and the applicable interest, dividend and securities-sale forms from banks and investment firms. A consolidated brokerage statement may contain several tax forms within one document. Other arrangements can generate additional forms, such as a Schedule K-1.[1]
The list should reflect your situation, not become a requirement to obtain every form named in an article. Some accounts may have no reportable activity, while some taxable income still needs attention even if no form arrives. Ask the preparer how to handle a missing or unexpected item.
Check identifying information, the tax year and whether the document is marked corrected. Keep earlier versions for reference but identify the latest applicable version clearly. If a corrected form arrives after you file, give it to the preparer so they can assess whether any change is needed.
Explain retirement transactions that a form cannot fully describe
A Form 1099-R reports a distribution, but the tax result can depend on facts outside the form. A rollover, Roth conversion, qualified charitable distribution or recovery of after-tax basis can require additional records and reporting. Do not assume the amount deposited into checking is the amount that belongs in every tax-return field.[1]
Suppose a retiree named Martin has a traditional IRA that distributed $20,000 during 2024. Assume $5,000 was a fully qualifying direct charitable distribution and the remaining $15,000 was an otherwise fully taxable withdrawal. The preparer needs the charitable documentation and transaction details to reflect the QCD properly.
Under those assumptions, the $5,000 excluded QCD would not also create a charitable deduction for the same amount. The $20,000 gross distribution and $15,000 taxable portion tell different parts of the story. Simply entering the gross amount as fully taxable would miss the assumed qualifying treatment.[1][2]
If Martin also has nondeductible traditional IRA contributions, the remaining taxable amount may need a different calculation. Prior Forms 8606 and basis records are important. Do not assume that choosing one IRA for a withdrawal isolates all the after-tax dollars from the applicable aggregation rules.[1][2]
For a rollover or conversion, retain the receiving-account confirmation as well as the distribution record. Tell the preparer what was intended and what actually occurred, including any amount withheld and whether the receiving institution confirms the same amount and transaction date. The label used in a personal spreadsheet should not override the completed transaction.
Reconcile investment income and Social Security
A securities sale's proceeds are not necessarily its taxable gain. Cost basis, adjustments, holding period and other transactions matter. Review missing basis and transferred holdings carefully rather than assuming a blank field means the investment cost nothing.[3]
Suppose Martin sold shares for $30,000 with a verified $22,000 basis and no other adjustments in this simplified example. The gain would be $8,000, not the full $30,000 proceeds; the $22,000 basis is part of reconciling proceeds with gain. The applicable tax treatment still depends on the holding period and the rest of his return.
Keep records of prior capital-loss carryforwards and transactions that may affect basis. A current brokerage form may not contain every fact from earlier years or accounts held elsewhere. Give the preparer the supporting history instead of relying on memory of what was originally paid.
For Social Security, use the annual benefit statement rather than adding only the bank deposits. Withheld taxes, Medicare premiums and other adjustments can make deposits differ from the figures needed for the return. The taxable portion of benefits depends on the applicable income calculation; it is not automatically zero because the recipient is retired.[1]
Tax-exempt interest can also matter in that calculation. Include the relevant form even if the interest is described as federally tax-exempt. “Not taxable as interest” and “irrelevant to every tax calculation” are different conclusions.[1]
Give the preparer the year's changes and payment record
Make a short note of events such as retirement, a move, a spouse's death, a property sale, a new pension election or a major charitable transfer. Each can explain why this year's documents differ. Include the date and supporting record rather than only a general description.
Provide estimated-tax payment confirmations and any prior-year overpayment applied forward. Reconcile withholding from the forms with the payment record. A projected tax payment in a planning worksheet is not proof that the payment was actually submitted.
Use the preparer's secure delivery process for documents containing personal information. Assign each expected item to an institution and mark it received only after checking the year and version. Keep a list of items still expected and tell the preparer when a form is missing. Filing quickly is less useful if it means filing an incomplete record that must later be corrected.
Start with the account inventory, then match each unusual transaction to its supporting documents. That approach helps the tax return reflect what actually happened in 2024 and gives your advisor a clearer basis for discussing the decisions still ahead in 2025.
Related reading
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Educational information, not personalized investment, tax, legal or benefits advice. Examples use hypothetical assumptions. Verify current rules and your circumstances before acting.
