Tax Preparation by Antonio Diaz
AD TAX PREPARATION INC. CHECKLIST
Before you begin to prepare 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.
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
Bank account number & routing number, if depositing your refund directly into your account
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
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 forpayer
Remember to report all income you receive, including:
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Unemployment compensation
Gambling winnings Payments for jury duty Scholarships
Cancellation of debt
Taxable Health Savings Account distribution Prizes and awards
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
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
State and local income taxes paid Real estate taxes paid
Personal property taxes
Vehicle license fees based on value ofvehicle
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: location, name of bank, account number, peak value of account during the year
Copies of Driver's Licenses.
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on your taxes, your investments, the law or any other business and professional matters that affect you and/or your business.