Another year has come and gone and now we have tax season upon us now. As a tax preparer I get asked questions on what needs to be done to prepare for tax filing. There are certain items you will need to collect in order to have your taxes prepared. Make sure you have received your W-2's from all your employers if you were an employee. Contract labor people will need to make sure they receive 1099's from the people you have worked with. If you made less than $600 for nonemployee compensation then don't expect a 1099 since it is not
required to be sent. Make sure you if you have any of the following information to include it with your tax papers.
Investment Income
Interest income - Form 1099-INT
Dividend income - Form 1099-DIV
Proceeds from the sale of stocks, bonds, etc. - Form 1099-B
Confirmation slips or brokers' statements for all stocks, etc. that you sold in the tax year.
Schedule(s) K-1 (Form 1065) from investments in partnerships
Schedule(s) K-1 (Form 1120S) from investments in S Corporations
Income from foreign investments - Amount of foreign taxes paid (you can find this on the brokers'
statement):
Income from stock option exercises and sales:
- Stock option agreement (showing type of options you received)
- Stock option statement showing exercise prices of options
- Form 1099-B for proceeds from stock sale
Sale of employee stock purchase plan shares:
- Form 1099-B for proceeds from stock sale
- Stock price on grant date:
- Stock price on purchase date:
- If stock sale occurred before qualifying period begins, Form W-2 showing "compensation income"
from a disqualifying disposition
Income from State & Local Income Tax Refunds
Form 1099-G from state or local governments
State income tax return from the prior tax year
City income tax return from the prior tax year, if any
Alimony Received
Bank statements or record of deposits
Business or Farming Income
Books/accounting records for your business, OR:
Invoices or billings
Bank statements
Cancelled checks for expenses
Payroll records
In addition you need:
Invoices for major machinery, equipment, furniture, etc. purchases
Logs or other records listing vehicle mileage
Inventory records, if your business maintains an inventory of goods or materials
If You Use Your Home For Business
Square footage of your home office area:
Total square footage of your home:
Total rent paid, if home is rented:
Mortgage interest reported on Form 1098:
Property tax payments from assessor's bill, cancelled checks, or impound records:
Homeowner's insurance premium payments:
Invoices for repairs and maintenance on your house
Utility bills
In my next article I will continue to list some items you will need to get the most out of your tax return refund. There are many deductions that people miss because it is unknown to them. My firm takes the extra mile to make sure you get the deductions you are qualified for. Stay tuned formore information to come.
required to be sent. Make sure you if you have any of the following information to include it with your tax papers.
Investment Income
Interest income - Form 1099-INT
Dividend income - Form 1099-DIV
Proceeds from the sale of stocks, bonds, etc. - Form 1099-B
Confirmation slips or brokers' statements for all stocks, etc. that you sold in the tax year.
Schedule(s) K-1 (Form 1065) from investments in partnerships
Schedule(s) K-1 (Form 1120S) from investments in S Corporations
Income from foreign investments - Amount of foreign taxes paid (you can find this on the brokers'
statement):
Income from stock option exercises and sales:
- Stock option agreement (showing type of options you received)
- Stock option statement showing exercise prices of options
- Form 1099-B for proceeds from stock sale
Sale of employee stock purchase plan shares:
- Form 1099-B for proceeds from stock sale
- Stock price on grant date:
- Stock price on purchase date:
- If stock sale occurred before qualifying period begins, Form W-2 showing "compensation income"
from a disqualifying disposition
Income from State & Local Income Tax Refunds
Form 1099-G from state or local governments
State income tax return from the prior tax year
City income tax return from the prior tax year, if any
Alimony Received
Bank statements or record of deposits
Business or Farming Income
Books/accounting records for your business, OR:
Invoices or billings
Bank statements
Cancelled checks for expenses
Payroll records
In addition you need:
Invoices for major machinery, equipment, furniture, etc. purchases
Logs or other records listing vehicle mileage
Inventory records, if your business maintains an inventory of goods or materials
If You Use Your Home For Business
Square footage of your home office area:
Total square footage of your home:
Total rent paid, if home is rented:
Mortgage interest reported on Form 1098:
Property tax payments from assessor's bill, cancelled checks, or impound records:
Homeowner's insurance premium payments:
Invoices for repairs and maintenance on your house
Utility bills
In my next article I will continue to list some items you will need to get the most out of your tax return refund. There are many deductions that people miss because it is unknown to them. My firm takes the extra mile to make sure you get the deductions you are qualified for. Stay tuned formore information to come.