Year-End Tax Checklist for Self-Employed Service Pros: 14 Things Your CPA Will Actually Ask For

Your CPA doesn't need everything. They need these 14 things, in approximately this format. If you can hand them this packet in March, your tax return takes them 90 minutes instead of 6 hours, and you pay accordingly less.

Income side (4 items)

1. 1099-K from each payment processor. Venmo, PayPal, Cash App, Stripe — whoever processed payments for you. Already-mailed in late January / early February. Rule of thumb: expect a 1099-K from a processor that paid you more than $20,000 across more than 200 payments (some states set lower limits). The income is taxable either way.
2. 1099-NEC from any business client who paid you $2,000+ in 2026 ($600+ before 2026). Almost only relevant for B2B service work; residential customers don't issue 1099-NECs. Mailed by Jan 31.
3. Annual revenue summary from your invoicing software. Category totals: residential service, commercial, equipment sales, repairs. One-page PDF is plenty.
4. Bank statement reconciliation. Your annual deposits should approximately match your 1099s plus cash income. If there's a $10,000 discrepancy, your CPA will ask. Pre-empt with a one-line explanation: "$8,400 from Zelle, no 1099 issued; $1,600 from cash sales, logged in invoicing system."

Expense side (8 items)

5. Vehicle: mileage log + odometer year-start and year-end. If you're using standard mileage. Contemporaneous log preferred — reconstructions get challenged.
6. Vehicle: repair, gas, insurance, registration, lease/loan payment receipts. If you're using actual expenses. Pick one method per vehicle.
7. Equipment purchases over $200. A new pool vac, pressure washer, drone, computer. Section 179 / depreciation territory. Save the receipt and the credit-card statement showing it.
8. Supplies and consumables. Chemicals, replacement parts under $200, cleaning products. Aggregate total + monthly breakdown. This is the biggest single expense for most service operators.
9. Subcontractor 1099s issued. If you paid anyone $2,000+ for service work in 2026 ($600+ before 2026), you owe them a 1099-NEC by Jan 31. Includes per-diem helpers, anyone who's not a W-2 employee.
10. Insurance premiums. General liability, vehicle (business portion), workers comp if applicable, equipment insurance. Yearly policy + monthly statements.
11. Phone and internet bills. Annual total + the business-use percentage. For most field service operators, 70-90% business use is defensible.
12. Marketing and advertising. Yard signs, door hangers, Google Ads, website hosting, business-card printing. Itemize ≥ $100 line items separately.

Other (2 items)

13. Home office: square footage of the space + total home square footage. Plus a one-line description of what it's used for. Either simplified ($5/sqft up to 300 sqft) or actual-expense method (utility, mortgage interest, depreciation %).
14. Estimated tax payments made during the year. Federal + state, with confirmation numbers. If you didn't make any quarterly payments and you owe more than $1,000, expect an underpayment penalty.

The format that makes your CPA's job easy

One folder per year. Inside:

• Income/ — all 1099s + the revenue summary PDF
• Expenses/ — one subfolder per category (Vehicle, Supplies, Equipment, Insurance, Marketing)
• Mileage/ — the year's log + start/end odometer reading
• Receipts/ — photos or PDFs, with the file naming convention YYYY-MM-DD_VENDOR_$AMOUNT.pdf
• Bank/ — the 12 monthly statements + a one-page reconciliation summary
• Estimates/ — quarterly tax payment confirmations

This single structural change cuts your CPA's billable time by half, on average. You're effectively trading 4 hours of your time organizing files for $400-$800 saved on the bill.

Common deductions service operators miss

• Continuing education / certifications — pool & hot tub trade shows, HVAC certification renewal, online courses
• Trade publications and software subscriptions — your service-business app, route software, accounting tool
• Bank fees and credit-card processing fees — Stripe takes 2.9% + $0.30; that's deductible
• Half of self-employment tax — automatic on Schedule SE, but worth knowing about
• Health insurance premiums — if you're not eligible through a spouse's employer
• Retirement contributions (SEP-IRA or Solo 401k) — for a SEP, about 20% of net self-employment earnings (net profit minus half your SE tax), up to $72,000 for 2026; can dramatically lower your tax bill

The "March 1" deadline you actually have

Tax day is April 15, but if you want a competent CPA to actually do real work on your return rather than rush-filing it, your packet needs to be in their hands by March 1. After that you're in extension territory — which is fine, but kicks the can to October.

The step people skip is the one we built a whole report around: reconciling what you invoiced against what actually landed in the bank. When we generate a Schedule C summary in the app, that gap is where nearly every surprise comes from — invoices marked sent but never paid, and deposits that were never invoiced at all.

Everything on this list ends up in one of two places: Schedule C for profit or loss, and Schedule SE for self-employment tax. Reading the Schedule C line items once before December is worth an hour of your year — the categories you are supposed to report against are the categories worth tracking during the year.

Daily Invoice Maker generates a one-click annual tax report — categorized income, categorized expenses, mileage summary, and a Schedule C-ready breakdown — that drops directly into your CPA folder. Download free and pull last year's report in 30 seconds.

Disclaimer: This list is the format used for typical residential service businesses on Schedule C. Your specific situation (LLC vs sole prop, multi-state operations, employees vs subs, equipment-heavy operation) may need additional documentation. Talk to your CPA about specifics.