Every year I have clients ask me what they should bring to the office when they come for their tax prep appointment…. It seems no matter how much information I give them I still send them back to get more.
Each situation is different and what maybe be a quick tax prep for one client may take a few days for another. I like to ensure my clients get the largest refund possible or owe the least amount of tax liability that is legally possible. I like to educate my clients on the latest tax laws so they know what they should and shouldn’t do during the rest of the year. I borrowed the tax checklist from turbo tax. I hope it helps you get prepared.
Personal information
The IRS needs to know exactly who’s filing and who is covered in your tax return. To do this, they require Social Security numbers.
Social Security Numbers
- Yours
________________________________________________
- Spouse
________________________________________________
- Dependents
________________________________________________
Information about your income
The following documents will help to identify all of your various sources of income for the year.
Income from Jobs
- Forms W-2 for all employers for whom you and your spouse worked during the year
Investment Income
Income from State and Local Income Tax Refunds
- Form 1099-G from state or local governments
- State income tax return from 2009, if any
- City income tax return from 2009, if any
Alimony Received
- Bank statements or record of deposits
Business or Farming Income
- Books/accounting records for your business OR:
- Invoices or billings
- Bank statements
- Cancelled checks for expenses
- Payroll records
In addition, you will need:
- Invoices for major purchases of machinery, equipment, furniture
- Logs or other records listing vehicle mileage
- Inventory records, if your business maintains an inventory of goods or materials
If You Use Your Home for Business
- Square footage of your home office area
________________________________________________
- Total square footage of your home
________________________________________________
- Total rent paid, if home is rented
________________________________________________
- Mortgage interest reported on Form 1098
________________________________________________
- Property tax payments from assessor’s bill, cancelled checks, or impound records
________________________________________________
- Homeowner insurance premium payments
________________________________________________
- Invoices for repairs and maintenance on your house
- Utility bills
IRA/Pension Distributions
- Form 1099-R for payments from IRAs or retirement plans
- Account summary form for the year for your IRA accounts , or
- Deposit receipts and contribution records
- If you received a distribution from an IRA account, the most-recently filed Form 8606 (if you made contributions in prior years to IRAs that weren’t deductible on your income tax return)
Rental Property Income
- Profit and loss statements from your property manager, or
- Checkbook or cancelled checks for expenses
- Form 1099-MISC or other records for rental income paid to you
- Mortgage interest reported on Form 1098
- Property tax payments from assessor’s bill, cancelled checks or impound records
- Record of suspended rental losses from prior years (usually shown on last year’s income tax return)
Unemployment Income
- Form 1099-G from your state unemployment agency, or
- Unemployment check stubs and deposit records
Social Security Benefits
Income From Sales of Property
If the property was sold in 2010:
- Sales proceeds: Bill of sale, escrow statement, closing statement or other records
- Cost of the property you sold: Invoices, receipts or cancelled checks
- Improvements made to the property: Invoices or construction contracts and cancelled checks
- Form 1099-C if your lender cancelled or forgave a portion of your debt. Normally considered taxable income, debt forgiveness on your principal residence is exempt from federal taxes through 2012. (You’ll need Form 982.)
If the property was sold at a profit before 2010 on the installment basis:
- Previous year’s return – Form 6252: Installment Sales
- Amount of principal collected on the installment note owed to you and the date you received each payment
________________________________________________
- Amount of interest collected on the note
________________________________________________
- Name, address and Social Security number of the buyer
________________________________________________
________________________________________________
________________________________________________
Miscellaneous Income
- Jury duty pay records
- Form(s) W-2G for gambling and lottery winnings
- Receipts for all gambling purchases
- Form 1099-MISC for prizes and awards you received
- Form 1099-MSA for distributions from medical savings accounts
- Scholarship records (if you used the money for anything other than tuition, books and supplies)
- Director’s fees receipts if you received money for serving on a corporate board of directors
Adjustments to your income
The following can help reduce the amount of your income that is taxed, which can increase your tax refund or lower your tax due.
Homebuyer Credits
- Form 5405
- Purchasers must attach a properly executed settlement statement to their return (for homes purchased after Nov. 6, 2009)
- The revised law passed on Nov. 6, 2009, gives the IRS broader authority, called “math error authority,” to deny homebuyer credit claims, without having to first audit a taxpayer’s return. This authority applies, retroactively, to credits claimed on original and amended 2008 returns, as well as to claims yet to be filed.
IRA Contributions
- Year-end account summary or bank statements
Green Energy Credits
- Form 5695 for residential energy credits
- Receipts for adding insulation, energy efficient exterior windows, energy-efficient heating and air conditioning systems, solar hot water heaters, geothermal heat pumps, and wind turbines
Student Loan Interest
- Form 1098-E showing interest paid, or
- Loan statements
Medical Savings Account Contributions
- Account statements or
- Cancelled checks
Moving Expenses
- Invoices from moving companies, or
- Cancelled checks, and
- Paycheck stub for moving expense reimbursements
Self-employed Health Insurance
- Insurance premium bills, or
- Cancelled checks
Keogh, SEP, SIMPLE and Other Self-employed Pension Plans
- Year-end account summary, or
- Cancelled checks
- Alimony Paid
- Cancelled checks
Educator Expenses
- Cancelled checks for expenses paid for classroom supplies, etc.
Itemized tax deductions and credits
The government offers a number of deductions and credits to help lower the tax burden on individuals, which means more money in your pocket. You’ll need the following documentation to make sure you get all the deductions and credits you deserve.
Advance Child Tax Credit Payment
Child Care Costs
- Cancelled checks or invoices
- Child care provider’s name
________________________________________________
- Provider’s address
________________________________________________
- Provider’s tax ID or Social Security number
________________________________________________
Education Costs
- Receipts for tuition (or cancelled checks) for post-high school education
- Tuition statement - Form 1098-T
Adoption Costs
Interest You Paid
Home mortgage interest:
- Form 1098, or
- Your mortgage statement showing how much interest you paid in 2010
Points:
- Form 1098 if you purchased a home in 2010
- Your 2009 tax return if you refinanced in a prior year and are deducting points over the life of the loan
Investment interest expense:
- Brokers’ statements showing margin interest paid
- Loan statements for loans taken out to purchase investments
Charitable Donations
Cash donations:
- Charity bills, receipts or cancelled checks
- Records of the mileage incurred for charitable purposes (such as Scouts)
Donations of property:
- Receipts from a charitable agency
- Estimated value of property given
________________________________________________
- Appraisal fees for expensive donations
________________________________________________
Other charitable donations:
- Prior years’ tax returns if you have unused charitable contributions (carryovers) from earlier years
- Year-end paycheck stub if donations were paid through your wage
Casualty and Theft Losses
- Description of property damaged or stolen
- Receipts or cancelled checks showing cost of property
- Insurance policy and insurance reports showing reimbursement
- Appraisal fees if applicable
- Previous year’s return if your loss was in a federally-declared disaster area and you plan to deduct your 2010 loss on an amended 2009 return
Other Miscellaneous Tax Deductions
- Reimbursement check stubs or reports from your employer
- Union dues – paycheck stub for automatic withdrawals
- Gifts to clients, etc. – receipts showing date, cost and description
- Supplies – receipts or bills
- Property purchased for use in your work – invoices, receipts
- Uniform and special clothing costs – bills or paycheck stubs showing deductions
Job Expenses
- Seminar fees – receipts or invoices
- Professional publications and books – receipts or invoices
- Receipts for small tools and supplies you purchased
Job travel information:
- Invoices, receipts or ticket stubs for transportation
- Mileage records per vehicle used
- Hotel bills
- Restaurant tickets showing name and address of establishment
- Parking fee receipts
Medical and Dental Expenses
- Invoices, receipts for medical or dental expenses, hospital care, medical aids, medicines and drugs, nursing care, nursing home expenses, transportation costs for obtaining medical care
Taxes you’ve paid
Properly documenting the taxes you’ve already paid can keep you from overpaying.
State and Local Income Taxes
- Last year’s state income tax return
- Forms W-2
- Cancelled checks for state estimates paid
Real Estate Taxes
- Tax collector bills or cancelled checks
- Form 1098 or closing statement if you bought, sold or refinanced property in the current year
Personal Property Taxes
- Tax bills or cancelled checks
- Automobile licensing bills, if fees are charged annually based on value
Information on household employees wages paid during 2010
A household employee is anyone you paid to provide domestic services in your home, like a nanny, babysitter, au pair, landscaper, etc. You are responsible for paying employment taxes for that person if you did not hire them through an agency, or if they are not self-employed and making estimated tax payments on their own.
If you are required to pay taxes on a household employees wages, you’ll need:
- Completed Form W-9 from your employee showing his or her Social Security number or other Taxpayer Identification Number (TIN)
________________________________________________
Other tax payments
If you paid quarterly estimated tax payments (usually paid by self-employed workers), you’ll need:
- Records showing the date paid and amount
If you applied a tax overpayment from 2009 to 2010, you’ll need:
- Your 2009 income tax return
If you filed or plan on filing extensions for your 2010 tax return, you’ll need:
- Cancelled checks for payments you made with the extension
Direct deposit information
If you want your tax refund deposited directly into your bank account, you’ll need:
- Routing number from the lower left side of one of your checks (usually the first nine digits)
_______________________________________________
- Bank account number from the bottom of the check or on a bank statement
________________________________________________
Foreign bank account information
- Name of financial institution
______________________________________________
- Location of financial institution
________________________________________________
- Account number
________________________________________________
- Maximum value of account
________________________________________________
Hybrid or clean diesel auto purchases
To receive a tax break for the purchase of a hybrid or clean diesel automobile, you must provide:
- Bill of sale for a hybrid automobile purchased in 2010
Tami Highbaugh-Abdullah
317.345.4182
http://highbaughtax.com
