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Tax United States

Individual Tax Preparation Template (United States)

Workflow checklist for collecting client documents, preparing Form 1040 and supporting schedules, reviewing, and e-filing the individual tax return with the IRS.

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Form 1040 preparation is the engine of a U.S. tax practice, and during filing season it has to run at volume without losing accuracy. A single return moves through document collection, data entry, internal review, client approval, and e-file, and every one of those stages depends on the one before it. When the steps live in someone’s head instead of a defined process, returns stall waiting on a missing W-2, drafts go out before a second set of eyes catches a transposed number, and 8879 signatures trickle in too late to e-file before the deadline.

A repeatable preparation job fixes that by giving every return the same path from intake to filing. This is the return job itself, distinct from client onboarding: the client is already engaged, and the focus now is producing an accurate, reviewed, accepted 1040. A standard process is what lets you scale through season, hand work between preparers and reviewers, and know at a glance where each return is sitting.

When to run it

Kick off a preparation job once the client is engaged and documents start arriving, typically from late January through the April filing deadline, plus a second wave for anyone on extension through October. A partner or tax manager usually owns the workflow and assigns preparers and reviewers, while the firm tracks status across the whole season rather than chasing individual returns.

How to run it in Tidyflow

Set this up as a reusable job template so every 1040 follows the same path. Each step becomes a subtask your team checks off, and because recurring tasks can repeat annually, you spin up next year’s returns without rebuilding the workflow. Use workflow management to run filing season: assign preparers and reviewers and watch progress across every return.

Gather what you need through the client portal: the tax organizer, income and deduction documents, and the signed Form 8879 e-file authorization. Tidyflow includes a ready-made 1040 organizer on this template, with conditional questions and last year’s answers carried forward. The organizer also settles the refund method and the balance-due payment method up front, because both are printed on the return and on the 8879.

Approval and signature are two separate steps here, in that order. The draft return goes out as an approval request: the client sees the prepared return and either approves it or asks for changes with a comment. Only once it is approved does the 8879 go out for signature, handled by electronic signatures so the authorization lands in the same place as the return. That order exists to avoid a second 8879, because a return that changes after signing needs a fresh one. When the return is accepted, document management keeps the filed return, signed authorizations, and workpapers archived together per your retention policy.

Common pitfalls

  • E-filing before the client returns a signed 8879, which the IRS requires on hand before transmission.
  • Sending the 8879 before the return is final. If AGI then moves by more than $50, or total tax, refund, or amount owed by more than $14, the IRS requires a new Form 8879.
  • Forgetting that married filing jointly needs both spouses to sign the 8879, not just the spouse who replies.
  • Leaving the refund or direct deposit election until after the client has signed, which is the most common way to void an otherwise good authorization.
  • Missing carry-forward items (capital loss carryovers, prior-year state refunds, depreciation) because the prior-year return was not pulled.
  • Skipping a real reviewer pass and letting software diagnostics stand in for human review.
  • Overlooking documents that arrive late, such as corrected 1099s or a final K-1, and filing on incomplete data.
  • Reconciling withholding and estimated payments to client memory instead of IRS and state records.
  • Treating a Form 4868 extension as an extension to pay. It only buys time to file, and interest plus the failure-to-pay penalty accrue on any balance due from the April deadline.

What's included in this checklist

16 steps and 3 client requests.

  1. 1

    Confirm engagement and prior-year return

    Verify the signed engagement letter and collect the prior-year return for reference.

  2. 2

    Collect client information and documents

    Send the tax organizer and request key documents. The organizer collects personal details, dependents, filing status, address, and refund or payment elections, along with all income documents (W-2, 1099, 1098, K-1, brokerage) and any deduction or credit information such as mortgage interest, donations, or education expenses.

  3. 3

    Reconcile withholding and estimated payments

    Match IRS and state payment records against client documents. Pull the IRS account transcript or the client's IRS Online Account record of estimated payments as the authoritative source rather than relying on client memory.

  4. 4

    File extension if needed (Form 4868)

    If the return cannot be completed by the April deadline, file Form 4868 for an automatic extension to file. An extension to file is not an extension to pay, so estimate and pay any balance due by the April deadline to avoid interest and penalties.

  5. 5

    Enter income, deductions, and credits

    Record all items in your tax software and ensure schedules are complete.

  6. 6

    Confirm refund or balance-due election

    Set the refund method, direct deposit account, any election to apply an overpayment to next year's estimates, and the balance-due payment method before the draft goes out. These appear on the return and on Form 8879, so changing them later can void a signed authorization.

  7. 7

    Review return for completeness and accuracy

    Validate carry-forwards, calculations, and e-file readiness.

  8. 8

    Calculate next-year estimated tax payments (Form 1040-ES)

    Work out whether the client needs to make estimated payments next year and prepare the Form 1040-ES vouchers. Base the safe harbour on this year's total tax (110% of it where prior-year AGI is over $150,000), and factor in any overpayment the client elected to apply forward. Doing this now means the client sees the vouchers in the draft package rather than discovering a penalty next April.

  9. 9

    Prepare draft return for internal review

    Run diagnostics and finalize the draft before sending to the client.

  10. 10

    Send draft return to client for review and approval

    Share the draft through the client portal and resolve questions before requesting a signature. Getting the return final here avoids a second Form 8879.

  11. 11

    Obtain signed Form 8879 before transmitting

    The IRS requires the taxpayer to review the completed return before signing, and the signed authorization must be on hand before you e-file. If the return then changes so that AGI moves by more than $50, or total tax, refund, or amount owed moves by more than $14, you must obtain a new Form 8879. Married filing jointly needs both spouses to sign.

  12. 12

    E-file federal and state returns

    Submit once client approval and the signed Form 8879 are in hand.

  13. 13

    Confirm IRS and state acceptance

    Verify the federal and state acknowledgements, and confirm any balance due was paid or the refund was issued as elected.

  14. 14

    Deliver final return package to client

    Send the filed return, the acceptance confirmations, any payment vouchers, and the next-year estimated tax vouchers through the client portal.

  15. 15

    Archive filed return and supporting docs

    Store final return, approvals, signed authorizations, and workpapers per retention policy.

  16. 16

    Record notes and mark return complete

    Add carry-forward notes and any follow-up items for next year.

What to request from the client

Built-in client requests so you collect everything in one go.

  • Individual tax organizer (Form 1040)

    The ready-made 1040 organizer: conditional questions, document uploads, refund and payment elections, and last year's answers carried forward.

  • Review and approve your draft return

    The client is shown the prepared return and either approves it or requests changes with a comment.

  • Sign the e-file authorization (Form 8879)

    The client signs Form 8879 in the portal after approving the draft, producing a signed PDF the firm retains before e-filing. Married filing jointly needs both spouses to sign.

Frequently asked questions

Onboarding covers signing up a new tax client: engagement, intake, and getting them set up. This preparation template is the recurring return job that runs each season to actually prepare, review, and e-file the 1040.

Yes. Run the same job for extended returns through the October deadline. The steps are identical, so you only change the timing, not the workflow.

Send the 8879 as an electronic signature request through the client portal, after the client has approved the draft return. The signed authorization is stored with the return so you can e-file as soon as it clears review. Married filing jointly needs both spouses to sign.

No. The draft goes out as an approval request, which the client approves or returns with comments, and the Form 8879 signature is the only signature the IRS requires. The two are separate steps because a return that changes after the 8879 is signed can need a new one: if AGI moves by more than $50, or total tax, refund, or amount owed by more than $14, the IRS requires a fresh authorization.

Yes. The preparation and review steps cover federal and state returns together, and you e-file both once the client approves. Adjust the subtasks to match the states you file in.

No. It is a general workflow template for organizing the preparation job, not tax, legal, or accounting advice. Always verify current IRS rules, forms, and filing deadlines for the year you are filing.

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