This Snow Day is a great time to start gathering your income tax data. I prepared the checklist below to help you get started.
As always, if you have any questions about your income, or what deductions you may be eligible for, call or text me on, 732-673-0510, or email on chriswhalencpa@gmail.com.
Tax Preparation Checklist
OVERVIEW
I prepared this checklist to assist you in gathering your end-of-year income tax information. Please read each item carefully, as they may now apply to you even though they did not in the past. When you feel all of your information is complete, call me to schedule an appointment to bring those to my office.
Personal information:
The IRS needs to know exactly who’s filing and who is covered in your tax return. To do this, you will need Social Security numbers and dates of birth for you, your spouse, and your dependents.
Information about your income:
- Income from jobs: forms W-2 for you and your spouse
- Investment income – various forms 1099 (-INT, -DIV, -B, etc.), K-1s, stock option information
- Capital Loss Carryovers from prior years. Both short term and long term
- Cryptocurrency – Gain / Loss statement. Remember, you have a taxable event when you exchange one cryptocurrency for another and NOT just when you cash out for fiat. You may receive form 1099K from a crypto exchange or other online space you are working with crypto within
- Income from state and local income tax refunds and/or unemployment: forms 1099-G
- Alimony received or paid – This may not deductible for the payor, or includable as income by the recipient, if the divorce was finalized after 2018
- Business or farming income – profit/loss statement, capital improvements, equipment and vehicles purchased information, Form 1099-NEC
- If you use your home for business – total home square footage, home office square footage, home expenses, office expenses. (click this link to download my worksheet Click Here)
- IRA/pension distributions – forms 1099-R
- Rental property income/expense – profit/Loss statement, rental property suspended loss information. Closing disclosures on purchase, sale. Refinance documents
- Social Security benefits – forms SSA-1099
- Income from sales of real property (1099S) – original cost and cost of improvements, escrow closing statement, HUD1, Closing Disclosures
- Canceled debt information (form 1099-C)
- Prior year installment sale information – forms 6252, principal and Interest collected during the year, SSN and address of payer
- Other miscellaneous income – jury duty, gambling winnings, gambling losses, Medical Savings Account (MSA), scholarships, etc.
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 the amount you owe.
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IRA contributions
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Energy credits
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Student loan interest
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Medical Savings Account (MSA) contributions
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Proof of health insurance
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Self-employed health insurance payments
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Keogh, SEP, SIMPLE, 401k and other self-employed pension plans
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Educator expenses
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.
- Child care costs – provider’s name, address, tax id, and amount paid per child
- Education costs – forms 1098-T, education expenses, # of years credits received for each student
- Adoption costs – SSN of child, legal, medical, and transportation costs
- Home mortgage interest and points you paid – Forms 1098
- Investment interest expense
- Brokerage fees
- Charitable donations – cash amounts and value of donated property, miles driven, and out-of-pocket expenses
- Casualty and theft losses – amount of damage, insurance reimbursements
- Medical and dental expenses, medical miles driven
- NO LONGER DEDUCTIBLE FOR EMPLOYEES
Other miscellaneous tax deductions – union dues, unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.)
Taxes you’ve paid:
Properly documenting the taxes you’ve already paid can keep you from overpaying.
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State and local income taxes paid
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Real estate taxes paid
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Personal property taxes – vehicle license fee based on value
Other information:
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Estimated tax payment made during the year, prior year refund applied to current year, and any amount paid with an extension to file
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Direct deposit information – routing and account numbers
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Foreign bank account information – location, name of bank, account number, peak value of account during the year
Click here to request a consultation or ask me a question.
Please reach out to me without hesitation with any tax, business or accounting question, and to schedule a consultation.
Tax Laws are complex.
It is very easy to make mistakes that can incur penalties.
Do you have a Tax, Accounting or Business Question?
Call Me Immediately. (732) 673-0510.
Is your CPA or Attorney
ignoring your Phone Calls and Emails?
Call Me Immediately. (732) 673-0510.
Remember,
“If We Aren’t Working For You, Then You Aren’t Working At Your Best”
Chris Whalen, CPA
(732) 673-0510
81 Oak Hill Road
Red Bank, NJ 07701
www.chriswhalencpa.com
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