Diane H. Wells, CPA, PC
Call or email:  770-579-0747 - diane@taxabc.com

What are My Documentation Requirements for Individual Income Tax Return Preparation?

Please bring the following information and materials to our meeting.  Of course, as we discuss your tax return, we may find that I will need additional information or documents.

Prior Year's Returns:
A copy of your federal and state income tax returns from last year, including any amended returns, together with a copy of any correspondence you have received in relation to them from the IRS or the state taxing authority.  If you were audited by the IRS or a state or local tax agency during the past year, please bring in documents showing the results of the audit.  Also bring the amount of any estimated tax payments (federal and state) made for this year.

The name of any dependents you intend to claim on your return and their relationship to you.  A family member or a resident of your household, including a foster child, is considered your dependent if you paid for more than half of their support during the year.  An individual may only be claimed as a dependent on one person's return (or on the return of married persons filing jointly).  Thus, if you claim an individual as a dependent, that person must not be claimed on his or her own tax return for the year or on the return of any other taxpayer.  I will need a social security number and date of birth for every dependent claimed.

Wages, Interest, Dividends and Other Miscellaneous Income:
Any W‑2s or Form 1099s, together with records of any other compensation received during the year.  Note that Form 1099s, in addition to reflecting any income you earned as an independent contractor, are also supplied by payers of interest and dividend income, by governmental units that provide refunds of state and local taxes, and by various other entities.  If you received any interest, dividend or other similar income not shown on a Form 1099, please bring in records of that income, including the payor's name and the account numbers to which such payments were credited.

Business Income and Expenses:
Business income and expenses from any unincorporated business you operated during the year (sole proprietorship or single owner LLC).  This may include businesses for which you received a Form 1099 or partnerships or S corporations from which you received a Schedule K‑1.

Investment Income and Expenses:
Details as to any investment property, including stocks, bonds and real estate, you sold during the year.  In addition to the type of property sold, I will need the purchase date, number of units purchased, purchase price, sale date, number of units sold, and sales price.  If you exchanged one piece of investment property for another (for example, exchanging one parcel of real property for another) during the year, please supply the dates and details of these transactions, plus details as to any other property you received in the transaction (including cash).  Please also provide details of any interest paid during the year with respect to investment property as well as any other expenses relating to its acquisition, maintenance, or disposition (such as safe deposit box fees, account service charges, brokerage commissions, investment advisor fees, etc.)

Other Income Items:
Details as to any other sources of income, such as income from rents, royalties, farming, unemployment compensation, social security benefits, and any other income received during the year.  You should also bring information concerning the amount and timing of any penalties you paid on early withdrawal of savings.  If you have questions about any item of income, please bring it up at our meeting, and I will determine whether it is taxable.

Retirement Plan Contributions and Distributions:
The date and amount of contributions made to an Individual Retirement Account (IRA), Roth IRA, Simplified Employee Pension (SEP) or Keogh, the name of the institution maintaining the accounts of such plan, and your account number.  Please also supply dates and amounts of any distributions you received from retirement‑type plans during the year.  I also must know whether such distributions represented a total withdrawal your benefits in each plan or part of a series of periodic payments.  Please provide details as to any after‑tax employee contributions you made to such plans.

Alimony and Child Support:
This includes details as to the amount of alimony you either paid or received during the year, as well as any child support and medical expenses not reimbursed through insurance or otherwise.

Medical Expenses:
If you had significant medical, dental or medication expenses not reimbursed by your health insurance, I will need information about such expenses.

In addition to taxes withheld at the source and already reflected on your W‑2s and Form 1099s, provide information as to any other taxes you paid during the year, including federal and state income tax, self‑employment tax, real property tax, and personal property tax (such as on a boat or car).

Personal Residence:
I need to know the amount of interest you paid during the year on any mortgage or home equity loan.  Bring the statement (Form 1098) furnished by your mortgage interest lender. If you purchased a residence or refinanced a mortgage during the year, bring the settlement statement which will reflect any interest charges paid at settlement, including "points."  If you sold a personal residence during the year, I will need the settlement statement from the sale.

The amount of any gifts to churches or other charities, in cash or property, the names of such charitable organizations, and any receipts for your contributions.  If you used your personal vehicle in performing services for charitable organizations, I will need records of your mileage.

Certain Losses:
Information regarding any losses due to casualty or theft, together with any insurance reimbursements received.

Employee Business Expenses:
Information with respect to any employee business expenses incurred during the year which were not reimbursed by your employer, such as work‑related entertainment, travel or educational expenses.  For example, if you used a personal vehicle in performing your job (other than for commuting), and were not reimbursed by your employer, I will need records of your mileage used in business travel and records of your automobile expenses.

Other Deductible Expenses:
I will also need records relating to any other deductible expenses, such as moving expenses, professional dues, student loan interest payments, tax return fees, investment fees, and gambling losses.  If you have questions about any expense, please bring it up at our meeting, and I will determine whether it is deductible.

Please call us at 770-579-0747 if you have additional questions.