Master Your Tax Prep: The Freelancer’s Essential Tax Document Checklist

If you're self-employed or a business-of-one, tax season doesn’t have to be a headache. With countless forms, receipts, and paperwork piling up, it’s easy to feel overwhelmed—but guess what? Lettuce has your back! This solopreneur tax document checklist will be your go-to guide to stay organized and fully prepared when it’s time to file.

This checklist covers the essential tax documents every solo needs so you can tackle tax prep with confidence and avoid any last-minute stress. It also explains how using Lettuce’s financial automation platform can make tax prep a walk in the park by keeping you organized all year long!

The Essential Tax Document Checklist for Your Business-Of-One

1. 1099 Forms (or K-1s for S Corps)

If you’re self-employed, you’ll likely receive a 1099 form from any client who paid you more than $600 throughout the year. If you operate as an S Corp, you’ll need to have your K-1 form ready to go. These forms report your income and are essential for filing your taxes accurately.

Pro Tip: Streamline your tax prep with Lettuce! It automatically tracks and records your client payments, as well as 1099 or K-1 preparation come tax season. For more tips, check out Lettuce’s guide, “Tips for 1099’ers: How Not to Overpay On Taxes.”

2. Invoices and Proof of Income

Your tax document checklist should include invoices and payment confirmations from clients, even if they don’t meet the 1099 reporting threshold. These serve as proof of income and are vital for calculating your earnings.

Lettuce helps you by automating the tracking of all your transactions, allowing you to see all those dollars earned at a glance.

3. Receipts for Business Expenses

Keeping track of all your business-related expenses is key to maximizing your self-employment tax deductions and keeping more of what you earned where it belongs in your pocket. Save receipts for things like:
Office supplies (paper, pens, envelopes, etc.)

• Software and tools (like your Microsoft subscription, design programs, and yes, your Lettuce subscription)
• Business meals (if it’s business talk, that makes it a business meal)
• Travel expenses (this includes gas and mileage put on your vehicle in performing your work)
• Home office costs (you might not be renting an office, but your business is still utilizing the space)

With Lettuce, your expenses are categorized and stored automatically, making it a snap to claim deductions and cut down your expenses.

4. Tax Deduction Forms

Remember to file the forms for your deductions. These may include records for things like healthcare expenses or vehicle mileage if you use your car for work. Lettuce’s expense categorization ensures every eligible deduction is accounted for.

Standard Deduction vs. Itemized Deductions

While many solopreneurs will want to itemize deductions to reduce their taxable income, you should also be aware of the standard deduction. In some cases, especially if your expenses are low, taking the standard deduction might make more sense. Lettuce helps you compare and choose the option that gives you the most savings!

Home Office Deduction Documents

Claiming the home office deduction? You’ll need to prove that your space is used exclusively for your business and not extra closet space. Keep records of your rent/mortgage, utility bills, and any repairs or improvements related to your workspace. Luckily for you, Lettuce’s automated system can help categorize and store these expenses, ensuring that you don’t miss out on this valuable deduction.

5. Proof of Estimated Tax Payments

As a freelancer, you’re responsible for making estimated taxes quarterly. Keep records of these payments to reconcile your final tax bill. Lettuce makes life easier with timely reminders and automation, ensuring you never miss a payment deadline.

Lettuce: Your Year-Round Tax Assistant

Being a business-of-one means wearing a lot of hats – but tax prep doesn't have to be one of them. Here’s how Lettuce can make your life a whole lot easier, with one less hat to worry about:

• Real-Time Updates: Lettuce tracks every dollar of income and expense daily, so when it’s time to file, everything is organized and ready to go.
• Expense Categorization: Maximize your tax deductions by ensuring your business expenses are accurately categorized throughout the year.
• Automated Processes: From incorporation to payroll processing, bookkeeping, and tax preparation, Lettuce handles it all automatically.
• Timely Reminders: Never miss a tax deadline again—Lettuce ensures your tax-related processes are automated, and you’re reminded in advance of important dates.
• Year-End Preparation: When tax season arrives, Lettuce provides all the necessary documents, including business tax filing form 1120S and Schedule K-1, making filing seamless and stress-free.

Average Cost of Tax Preparation by a CPA

You might be wondering, “Should I hire a CPA, or go DIY?” Here’s a quick breakdown: the average cost for tax preparation by a CPA for a business-of-one typically ranges from $300 to $600 or more, depending on your finances' complexity. While hiring a CPA may be helpful, using a platform like Lettuce, priced at $299 per month, can automate your tax calculations and financial reporting—especially since the savings from electing S Corp status could easily cover the cost of the service. Not to mention with Lettuce you get added features like free S Corp set-up, bookkeeping, invoicing enhanced retirement strategies, and comes with Lettuce support and Guarantee.

The Final Tax Document Checklist: Ready to Simplify Your Tax Prep?

To recap, here’s a handy checklist of the essential tax documents every solopreneur should have for tax season:

By sticking to this tax document checklist, you’ll be fully prepared for tax season. But with Lettuce’s smart financial tools, you don’t have to worry about managing it yourself—Lettuce automates your tax prep year-round, keeping you organized, minimizing costly mistakes, and maximizing your savings.

Want to learn how to boost your profitability and help you keep more of what you earn without piling on more tasks? Check out Lettuce’s Free Masterclass, "S Corp 101," for expert insights and tips, or learn more about how it works by visiting How Lettuce Works.