Tax documents for self-employed people and sole proprietors
Self-employed taxpayers need more paperwork than employees because they report both income and expenses themselves. The earlier you organize it, the fewer questions your preparer will need to ask.
Income documents
- 1099-NEC and 1099-MISC forms from clients
- 1099-K from payment apps and marketplaces
- Invoices and bank deposits for income not reported on a 1099
- Records of cash and check payments
Expenses and receipts
- Receipts or card statements for business purchases
- Software, subscriptions and tools
- Advertising and website costs
- Professional fees (accountant, legal)
- Business insurance and licenses
- Phone and internet (business-use share)
Other records to gather
- Mileage log with dates, destinations and business purpose
- Home office square footage and total home square footage
- Health insurance premium statements
- Estimated tax payment confirmations for each quarter
- Retirement plan contribution records (SEP, Solo 401(k))
Common mistakes to avoid
- Forgetting income that never got a 1099
- Mixing personal and business spending in one account
- No mileage log, so the deduction is hard to support
- Not tracking estimated tax payments already made
Frequently asked questions
Do I need a separate bank account?
It isn't required for a sole proprietor, but a separate account makes the books and the tax return far easier to prepare.
What if I didn't get a 1099?
Income is generally reportable whether or not a form was issued, so keep your own records of everything you were paid.
Related checklists
This is a general checklist to help you gather paperwork, not tax or legal advice. Rules and thresholds change and depend on your situation, so confirm details with a qualified preparer or the IRS.