Here is what you need to give to your tax preparer.
* Full names,
as they appear on the Social Security card, Social Security numbers and dates
of birth for you, your spouse, and all dependents, the relationship of all
dependents, and whether or not, and how long, they lived with you.
* W-2 forms
(all copies) and the final pay-stub for the year for all of your
employers. Make a copy of your W-2s to
keep with you.
* All 1099s
(for interest, dividends, gross proceeds, pensions, distributions from a
Qualified Tuition Program, and other income), 1098s (for mortgage interest,
contribution of a motor vehicle to charity, student loan interest, and tuition
and fees).
* All K-1s
and all attachments and supplements for partnerships, sub-S corporations,
estates and trusts from all sources.
* Any 1095-A
you receive regarding health insurance premiums and advance premium tax credits
for insurance purchased through the government Marketplace.
* IRS Letter
6475 to report the amount of the 3rd Economic Impact Payment you
received in 2021, or the amount of payment received, and IRS Letter 6419 to
report any advance Child Tax Credit payments received in 2021.
* All
year-end statements and information you received from brokerage and mutual fund
accounts and any AVERAGE COST STATEMENTS received from a mutual fund on the
sale of fund shares.
* How much of
the principal of any mortgage loans represents “acquisition debt” (money
borrowed to buy, build or substantially improve the residence) and how much
represents “home equity debt” (money borrowed for any other purpose – such as
to pay for college, pay down credit cards, or buy a car).
* A detailed
listing of-
1. unreimbursed medical expenses,
2. charitable contributions,
3. rental income and expenses, and/or
4. self-employment income and expenses.
Your tax pro
doesn’t need to see actual bills, receipts, or cancelled checks. For the most part I just need numbers. DO NOT give him or her a pile of medical
bills and receipts and insurance statements and expect them to sort through
them to determine your allowable medical deduction.
Your tax pro
also does not need to see proof or acknowledgement of each of your individual
cash donations. They only need a listing
of your contributions. Do, however, provide
any receipts, acknowledgments or listings for non-cash contributions –clothes,
books, household items, furniture, etc. - to Goodwill, the Salvation Army, or
your church.
Provide specific
numbers for deductions you are claiming.
“Claim the maximum” or “Whatever I am allowed” or “Same as last year” is
not appropriate. The maximum is what you
actually paid – and you are allowed what you actually paid! Tell your tax pro “$1,023.50” or “$20.00 per
week for 50 weeks” or “4638 miles”.
If any of the
situations described on the next pages apply to you, your preparer will need
additional information.
IF YOU SOLD
STOCK, BONDS, OR MUTUAL FUND SHARES – The date of purchase and cost of the
investment sold. This information may be
in the Year-End Consolidated Form 1099 Statement you received from the brokerage
firm or mutual fund house. If cost basis
information for all trades is not included on this statement have your broker
provide you with a “profit and loss” report for all the year’s trades that
reconciles to the Form 1099B for each account.
If you sold an investment you inherited provide the number of shares
inherited and the date of death of the person from whom they were
inherited.
IF YOU SOLD
REAL ESTATE – The Closing/Settlement Statements for both the purchase and sale
of the property, plus the cost of improvements made to the property over the
years and any expenses of sale paid separate from the closing.
IF YOU
PURCHASED REAL ESTATE – The Closing/Settlement Statement for the purchase of
the property. For rental property provide
the separate amounts of “assessed value” for land and improvements from the tax
bill.
IF YOU
RECEIVED DISTRIBUTIONS FROM AN IRA – The year-end statements for all IRA
accounts and if you rolled-over into another IRA account any of the distribution.
IF YOU
RECEIVED DISTRIBUTIONS FROM A PENSION PLAN – Did you rolled-over the
distribution to an IRA or you “took the money and ran”.
IF YOU ARE
PAYING OR RECEIVING ALIMONY – The date of the divorce agreement, the Social
Security number of your ex-spouse, the amount of alimony paid or received for
the year, and any other required payments, such as health insurance premiums,
real estate expenses, that you are made on behalf of your ex-spouse.
IF YOU
PURCHASED A CAR, TRUCK, SUV, MOTORCYCLE, BOAT OF AIRPLANE – The amount of sales
tax paid.
IF YOU
REFINANCED A MORTGAGE – The Closing/Settlement Statement for the refinance, the
term of the new loan, and what you did with any cash you received from the new
loan.
IF YOU
DONATED A CAR TO CHARITY – All the paperwork you received from the charity,
especially the Form 1098-C, plus the original cost and date of purchase of the
car.
IF YOU HAVE
GAMBLING WINNINGS – All W2-Gs, details of all your gambling losses (slots,
tables, raffles, lottery, racetrack, etc.), and any gambling log you kept.
IF YOU HAVE
DEPENDENTS IN COLLEGE – All Form 1098-Ts received and all the “Bursar’s Reports”
for the year that show tuition and other payments. You may be able to print-out a financial
report from the college’s website. Also,
what was spent on course-related books, supplies, and equipment. If you have taken a distribution from a
Section 529 Qualified Tuition Program provide the cost of room and board or if
the student lived at home.
IF YOU PAID
FOR CHILD CARE, WHETHER DIRECTLY OR THROUGH A FLEXIBLE SPENDING ACCOUNT – The
name, address, Social Security or Employer Identification number, and amount
paid for all child-care providers listed by chikd. You may be able to get statements from the
provider(s).
Additional
information may be needed for the state return.
Don’t give
your preparer your “stuff” in installments.
Wait until you receive all the necessary forms and information
If this is
the first year with a new tax preparer give him or her copies of your 2020, 2019,
and 2018 federal and state returns.
TTFN