Tax Checklist

Here is a list of the most common items that impact your individual tax return:

General

  • Previous 2 years  tax returns for you and your spouse
  • Names and social security numbers for yourself, your spouse, children and any other dependents
  • Date of birth for yourself, spouse, children and other dependents
  • Name and social security number of ex-spouse, if filing separately
  • Signed form 8332 if you are claiming children who live with their other parent

Income

  • W-2 forms for you and your spouse
  • 1099-NEC for independent contractor income. Need details of expenses related to your work
  • 1099-MISC forms for rents, royalties and other income.
  • 1099-K if you took third party payments. For example, from Uber or Paypal
  • Income and expenses from self-employment income for which no tax documents were issued
  • Rental property income and expenses – suspended loss information should be on previous year tax returns
  • 1099-INT, 1099-OID and 1099-DIV forms for interest and dividend income
  • 1099-B forms for sale of securities and other property – need cost basis and acquisition date for items with no basis listed on the 1099-B
  • Summaries of transactions involving digital assets such as crypto currencies, including value of assets purchased or received, and gain or loss on assets sold, traded or otherwise disposed of.
  • Documents from your employer detailing stock options granted or exercised during the year
  • 1099-R for distributions from retirement plans
  • SSA-1099 for social security benefits received
  • 1099-G – unemployment income or state tax refunds
  • Alimony received – if your divorce was finalized before December 31, 2018 – also name and social security number of former spouse. Note that child support is not to be included in the total
  • 1099-C forms for cancellation of debt
  • 1099-S for sale of a property – need date of acquisition and cost of purchase and major improvements added after acquisition
  • K-1 forms for income from partnerships, S Corporations or estates and trusts – suspended loss information should be on previous year tax returns
  • 1099-SA for distributions from health savings accounts
  • Detail of hobby income and rental of property below fair value
  • Other income – scholarships (form 1098-T), distributions from education savings plans (1099-Q), jury duty, gambling winnings (form W-2G), etc.
  • Foreign salary or self-employment income, and taxes paid or payable to foreign countries

Deductions, Adjustments and Credits

  • Itemized deductions (Schedule A)
    • Medical expenses for yourself, your children and other dependents, including those who could be considered dependents, except that their income was over the limit. Includes health Insurance, prescriptions, doctors, dentists, vision care, long term health care insurance, medical mileage, Nursing homes, caregiver expenses and certain equipment and home improvements may be deductible partially or in full.
    • Real estate taxes and other taxes paid. Includes a portion of auto registration fees. There are limitations to amounts deductible on federal tax returns
    • Form 1098 for mortgage interest paid – there are limitations to amounts deductible, which may be different for federal and state returns
    • Investment interest expense
    • Form 1098-VLI for vehicle loan interest
    • Charitable contributions – cash contributed, and fair value of property donated. Also mileage driven for charitable purposes. Documentation may be required for some donations, depending on type and amount
    • Casualty and theft losses, insurance reimbursements – Unless the result of a federally declared disaster, these expenses may be deductible only on state tax returns
    • Unreimbursed job expenses and other miscellaneous expenses. These are not allowed for federal purposes, but may be deductible on state tax returns. They include union dues, job education, unreimbursed business mileage, certain job hunting expenses, business use of your home, and other required costs incurred for the convenience of your employer. Also last year’s tax preparation fee.
    • Investment expenses. Not deductible for federal, but may be a deduction on your state tax return
    • Certain legal fees that may be deductible on state returns, but not federal
  • Legal fees related to certain lawsuits involving discrimination
  • IRA contributions (form 5498)
  • Contributions to SEP, SIMPLE and other self-employed pension plans
  • Self-employed health insurance expenses for yourself and your family
  • HSA contributions (form 5498-SA
  • Alimony paid for divorces finalized before December 31, 2018, not including child support – need name and social security number of former spouse
  • Detail of expenses for moving over 50 miles for business reasons. Not deductible for federal purposes, but may be a deduction on your state tax return
  • Form 1098-E for student loan interest paid
  • Form 1098-T for education expenses for yourself, your spouse and your children. Also expenses for books and other required items.
  • Out-of-pocket expenses by K-12 educators
  • Child and dependent care expenses. Need amount for each child or dependent, any employer subsidies. Also the name, address, tax ID number and telephone number of the care provider.
  • Adoption expense details
  • Cost of qualified energy-efficient home improvements, eligible electric car purchases and other costs eligible for special tax credits

Business Expenses

Generally speaking, you can deduct expenses required to earn self-employment income or income from a rental property. Examples include:

  •  Mileage driven for business purposes is deductible, including mileage to care for a rental property. If the IRS examines your return, they will require a log that shows how many miles you drove, and the details and business purpose of the mileage. Actual expenses, such as gas, insurance, repairs, lease cost, depreciation, etc. are allocated based on business mileage as a percentage of the total miles you drove. Alternatively, you can use a standard mileage rate that takes all costs into account.
  • Depreciation of assets used in your business, including rental activities, is deductible. Need the date when the asset was placed in service, original cost, value at date it was placed in service if different and any depreciation taken in previous years
  • Use of your home for business can be deductible in specific circumstances. Need the size of the space used exclusively for business, size of the entire home, total rent, utilities, insurance, mortgage interest, taxes, depreciation, etc.
  • Other costs specific to your business or rental activity. These may include material purchases, rent, interest, travel, commissions, legal costs, salaries, payroll taxes, independent contractor services, insurance, etc.

Taxes Paid

  • Previous years income taxes paid during the current year – federal and state
  • Prior-year refund applied to current year
  • Estimated taxes paid – federal and state – amounts and dates of payments
  • Amount paid with an extension to file

Documentation for Due Diligence

If you have children or other dependents – documents to show eligibility for Child Tax Credits, Head of Household status, Earned Income Tax Credit and education credits:

  •  School, medical or other documents that show that children or dependents actually live at your address
  • Form 1098-T to show attendance at an eligible educational institution
  • Forms 1099-MISC and/or profit and loss statements for self-employment and independent contractor income

Banking Details

  • Bank account and routing number, for direct deposit of a refund or direct debit of a tax payment
  • Financial accounts outside the US for yourself and/or your spouse – Institution name and address, type of account, account number and highest balance (in US dollars) at any time during the year. Financial accounts include retirement accounts, insurance policies and other funds that you can access