IMPORTANT TAX TIME ITEMS
Before preparing your income tax return, go through the following checklist. Highlight the areas that apply to you, and make sure you have that information available. Better yet, attach the list to a folder of your tax documents, and check items off as you add them to the folder then provide copies to me.
NOTE: I have many items from previous tax returns but if you’ve relocated I will need the new address and a copy of any closing documents. You can always email or call with questions to: dm.yourowncfo@gmail.com 630-670-8852
Most people will need:
Personal information This information tells the IRS exactly who’s filing, who is covered in your tax return, and where to deposit your tax refund. Social Security numbers and dates of birth for you, your spouse and your dependents Copies of last year’s tax return for you and your spouse (helpful, but not required) Bank account number and routing number, if depositing your refund directly into your account
Information about your income W-2 forms for you and your spouse 1099-C forms for cancellation of debt 1099-G forms for unemployment income, or state or local tax refunds 1099-NEC (or 1099-K if you’re paid through a third-party such as PayPal) forms for you and your spouse for any independent contract work Form 1099-R (for IRA/pension distributions) 1099-S forms for income from sale of a property 1099-INT, -DIV, -B, or K-1s for investment or interest income SSA-1099 for Social Security benefits received Alimony received Business or farming income—profit/loss statement, capital equipment information Rental property income and expenses—profit/loss statement, suspended loss information Prior year installment sale information—Forms 6252, principal and interest collected during the year, SSN and address for payer © 1997-2022 Intuit Inc.
Additional income Remember to report all income you receive, including: Business income Rental real estate, royalties, partnerships, S corporations, trusts, etc. Unemployment compensation Stock options Gambling winnings Payments for jury duty Scholarships Cancellation of debt Taxable Health Savings Account distribution Prizes and awards
Adjustments to your income The following items can help reduce the amount of your income that is taxed, which can increase your tax refund, or lower the amount you owe. Alimony paid for divorces executed prior to 2019. Form 1098-E for student loan interest paid (or loan statements for student loans) Form 1098-T for tuition paid (or receipts/canceled checks for tuition paid for post-high school) For teachers: canceled checks or receipts for expenses paid for classroom supplies, etc. Records of IRA contributions made during the year Receipts for any qualifying energy-efficient home improvements (solar, windows, etc.) Records of Medical Savings Account (MSA) contributions Self-employed health insurance payment records Records of moving expenses Keogh, SEP, SIMPLE, and other self-employed pension plan © 1997-2022 Intuit Inc.
If you itemize your deductions: 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: Child care costs: provider’s name, address, tax ID, and amount paid Education costs: Form 1098-T, education expenses Adoption costs: SSN of child; records of legal, medical and transportation costs Forms 1098: mortgage interest, private mortgage insurance (PMI), and points you paid Investment interest expenses Charitable donations: cash amounts, official charity receipts, canceled checks; value of donated property; miles driven, and out-of-pocket expenses Medical and dental expense records Casualty and theft losses: amount of damage, insurance reimbursements Records/amounts of miscellaneous tax deductions: union dues; unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.) Records business use of home expenses for self-employed, home size/office size, home expenses Rental property income/expenses: profit/loss statement, rental property suspended loss information
Taxes you’ve paid State and local income taxes paid Real estate taxes paid Personal property taxes Vehicle license fees based on value of vehicle © 1997-2022 Intuit Inc.
Other information Estimated tax payments made during the year (self-employed) Prior-year refund applied to current year and/or any amount paid with an extension to file Foreign bank account information: locale and #s
Every Individual and/or Family has unique circumstances that cam effect their returns and perhaps require other items. We will discuss all in our 2022 Interview. Feel free to bring up any concerns or changes to your situation like Divorce, New House, New Baby etc.
I get very busy during tax season so please understand that I may not be able to take calls on the spot. However, I will return missed calls promptly when freed up.
Here's to paying the least amount that can legally be achieved. Here is what the Supreme says about it:
"Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes."
Gregory v. Helvering, 69 F.2d 809, 810 (2d Cir. 1934)
Best,
Donn Marier
DM-Your Own CFO