February 11, 2025

Preparing Required Documents for Filing Taxes and Avoiding Common Mistakes

Preparing Required Documents for Filing Taxes and Avoiding Common Mistakes

Preparing Required Documents for Filing Taxes and Avoiding Common Mistakes

Filing your taxes can be overwhelming, especially when your income comes from a combination of sources such as annuities, retirement savings accounts, pensions, or other assets. Maximizing the benefits of all available deductions and credits adds another layer of complexity to the process.

Having the necessary documentation and avoiding common mistakes can save you time, money, and potential penalties. Partnering with an experienced financial advisor and tax planner can streamline tax preparation by ensuring proper documentation, implementing tax-efficient strategies, and reducing the likelihood of errors.

Gather Essential Documents Early

Income Documents

  • W-2s for employment income
  • 1099 forms (e.g., 1099-INT for interest income, 1099-DIV for dividends, or 1099-R for retirement account distributions)
  • SSA-1099 for Social Security benefits

Retirement Account Documents

  • Form 5498 for IRA contributions
  • Form 1099-R for distributions from IRAs, 401(k)s, pensions, or annuities

Investment and Savings Documentation

  • Year-end statements for brokerage accounts
  • Form 1099-B for capital gains and losses

Expense-Related Receipts and Records

  • Medical and dental expenses exceeding 7.5 percent of AGI
  • Records of charitable contributions, including cash and non-cash donations
  • Property tax statements and mortgage interest statements (Form 1098)

Retirement-Specific Tax Considerations


Required Minimum Distributions (RMDs)

  • Ensure Form 1099-R accurately reflects your RMDs
  • Double-check calculations to avoid a 50 percent excise tax on missed or insufficient RMDs

Qualified Charitable Distributions (QCDs)

  • Keep records of QCDs made directly to charities to exclude them from taxable income

Working With a Professional Tax Preparer

Handling tax preparation on your own can be precarious, especially if you have complex assets and retirement income from many sources. Collaborating with a financial advisor and tax preparer is typically the best way to avoid major issues. Your advisor ensures your finances are well-organized and employs strategies to make tax preparation smoother and more accurate.

However, mistakes can still happen when you work with a professional, especially if they don’t have a complete picture of your finances. You can reduce this risk by being proactive and avoiding some of the common tax preparation missteps.

Tax Preparation Mistakes to Avoid

Forgetting to Provide Complete Documentation

  • Income Sources: Omitting less obvious income streams, like rental income or dividends.
  • Investment Activity: Failing to include brokerage statements or records of capital gains and losses.
  • Retirement Account Activity: Overlooking forms like 1099-R for distributions or Form 5498 for IRA contributions.

Not Informing the Preparer of Life Changes

  • Failing to inform your tax preparer of significant events that occurred during the past tax year, such as selling a primary residence, downsizing, or taking on caregiving responsibilities for a dependent. These events can have major tax implications.

Missing Documentation for Credits and Deductions

  • Failing to keep receipts or certifications for charitable donations, energy-efficient home improvements, or medical expenses exceeding 7.5 percent of AGI.
  • Overlooking records for state and local taxes (SALT) paid throughout the year, such as property tax bills and state estimated tax payments.

Assuming the Preparer Has All Relevant Details

  • Tax preparers rely on the information provided by clients. Retirees might mistakenly assume their preparer knows about past tax planning strategies or carryover deductions (e.g., charitable contribution carryovers).

Not Reviewing the Final Tax Return

  • Retirees may neglect to double-check their tax return for errors or omissions before filing. Even professionals can make mistakes if provided with incomplete or incorrect information.

Failing to Discuss Tax Planning Strategies

  • Many retirees focus only on the current tax year, neglecting to discuss strategies with their preparer for minimizing taxes in future years, such as Roth IRA conversions, charitable giving, or spreading out RMDs to avoid tax spikes.

Underestimating Tax Implications of New Investments

  • Forgetting to discuss the tax treatment of new investment vehicles like annuities, DSTs, or real estate investments made during the year.

Having Your Own Financial Team Can Simplify Your Life  

One of the benefits of working with a financial advisor that integrates retirement planninginvestment managementtax planning and preparation, and estate planning all under one roof is a streamlined process that ensures all relevant documentation and strategies are aligned for simplified tax preparation.

Fullerton Financial Planning provides a comprehensive approach to ensure nothing in your financial life is overlooked. Our tax planners and preparers possess a clear picture of your portfolio and tax strategy, making it easier to complete an accurate return.

You can learn more about our tax planning and preparation capabilities and our other financial services by calling us at (623) 974-0300 to schedule a meeting.

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What We’ll Cover in Your Retirement Review


Lifestyle Goals

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Current Assets

We’ll review what you’ve built — and help uncover smarter ways to use your 401(k), IRA, or savings more effectively for retirement income.


Income Planning

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Risk & Tax Exposure

We’ll evaluate how your plan holds up to taxes, longevity, healthcare costs, and market shifts — so your income stays steady, even when life doesn’t.


Long-Term Strategy

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The Next Steps

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What You Get With Fullerton

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    Invitations to Fullerton’s exclusive client events and appreciation gatherings
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  • Experienced, time-tested guidance from a leading independent Arizona-based planning firm focused on your future

Income
Planning

A strategy to turn your savings into reliable, steady income — so your lifestyle stays on track in retirement.

Tax
Planning

Smart planning to reduce future taxes and keep more of your money working for you.

Health Care
Planning

Protection against rising healthcare costs, including long-term care, built into your plan.

Risk
Management

A clear approach to guarding your wealth from market swings, inflation, and the unexpected.

Real Estate
And Legacy
Planning

A plan for your assets and property that preserves your legacy and supports your loved ones.

Planning With Fullerton

Relationship Building

You’re not just another account. At Fullerton, every relationship begins with real conversation — taking time to understand your values, priorities, and goals. That connection becomes the foundation for a plan that’s built around you, not a formula.

Personalized Experience

No two retirements are the same. Your strategy will reflect your unique goals, lifestyle, and financial position. Everything is tailor-made: your income structured, your tax plan, and the preservation of legacy. The difference in the details — because it is built around you.

Holistic Approach

A good plan looks beyond the numbers. Your lifestyle, your family, your values — it’s all connected. That’s why our planning process considers every part of your life, not just your portfolio — leaving no stone unturned.

See What Fullerton Can Do For You

Going from "I hope this works" to "I know I'm covered".

Experience You Can Trust

Retirement is too important to trust to a generalist. That’s why for over 20 years, Fullerton Financial Planning has focused exclusively on helping people transition from work to retirement — and thrive throughout it. We’re not trying to be everything to everyone. We’re built to help you do one thing incredibly well: Turn your life savings into reliable income and lasting financial confidence.

Why Families Across Arizona Trust Fullerton

  • Over 20 years helping Arizona retirees create income that lasts
  • Trusted by more than 2,000 Arizona households — and growing
  • Independent, fiduciary-based advice — no quotas, no product push
  • Certified Financial Planner™ (CFP®) professionals on staff
  • Regularly featured on ABC15, MoneyRadio, and financial education outlets
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  • Planning approach integrates investments, income, tax, Medicare, and legacy goals
  • Collaborative relationships with CPAs, estate attorneys, and insurance professionals
  • Focused on education-first guidance, not sales pitches or one-size-fits-all plans
  • Supported by a dedicated client service team with a reputation for proactive care

“I was nervous about retiring — but they helped me see the whole picture and gave me confidence to move forward.”

— Mary J., Scottsdale


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— Brian & Sandra T., Mesa


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— Teresa D., Chandler


“Our old advisor never talked about income or taxes — this team gave us a plan we could actually live on.”

— Kevin M., Sun City

The Fullerton Family

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