This is a list of items you should bring to the Income Tax Appointment

Transcription

1 A P R O F E S S I O N A L M A I N T A I N I N G Y O U R F I N A N C I A L R E C O R D S My-Online-Tax-Accuntant.cm This is a list f items yu shuld bring t the Incme Tax Appintment 1. Scial Security Card(s) - Yur Scial Security number, which is yur taxpayer identificatin number, is printed n yur Scial Security card. If yu d nt have a Scial Security card, yu can apply fr ne by cmpleting Frm SS-5, Applicatin fr a Scial Security Number Card. If yu are changing yur name (due t marriage, divrce, etc.), ntify the Scial Security Administratin (SSA) s that yu can btain a new Scial Security card. Get Frm SS-5 frm yur lcal SSA ffice (see the blue pages f yur lcal phne bk) r by calling This frm can als be btained frm the SSA Web site at If yu have yur Scial Security card, please bring it with yu t the tax interview. If available, bring the Scial Security cards and dates f birth fr each child. We will use this infrmatin fr the dependents yu can claim n yur tax return. If yu had a baby during the year, the hspital may have prvided Scial Security applicatin frms fr yur child. Yu must have a valid Scial Security number fr every persn included n the tax return t electrnically file with the IRS. 2. Driver's License(s) - We will use yur driver's license t verify yur identity. Other frms f identificatin yu can bring include: state-issued picture ID, military ID with picture, U.S. passprt, Resident Alien ID with picture, city-issued picture ID, r cunty-issued picture ID. 3. Wage Statements Frm W-2 Fr emplyee incme, yu shuld receive a Frm W-2, Wage and Tax Statement, in the mail frm each emplyer yu wrked fr during the year. Cntact the emplyer if yu d nt receive yur Frm W-2; it shuld be sent t yu by January 31 f the fllwing year. Under certain cnditins, we can determine yur incme by using yur payrll stubs. Fr nn-emplyee incme (fr example, if yu are an independent cntractr) that was $600 r mre, a Frm 1099-MISC, Miscellaneus Incme, shuld be sent t yu by January 31 f the fllwing year. Bring all f yur current year Frms W-2 and Frms 1099-MISC t yur tax interview. 4. Last Year's Federal and State Tax Returns - Yu may be able t qualify fr sme f the same tax deductins r tax write-ffs that yu received last year. If yu are nt a prir-year Accunting and Tax Services client, cnsider bringing in a cpy f last year's tax return(s) t yur tax interview. Certain infrmatin frm the prir year's return(s) may be helpful in calculating the current-year tax return. 111 S. 7 th Street Cañn City, Clrad (719) Dave@My-Online-Tax-Accuntant.cm

2 Please, review the rest f this list t see if anything applies t yur tax situatin: 1. Interest and Dividend Incme - If yu have earned interest frm any bank during the year, that bank will send yu a Frm 1099-INT, Interest Incme, at the end f the year. Even if yu d nt receive a Frm 1099-INT, yu still need t reprt yur interest. If yu d nt receive a Frm 1099-INT, cnsider bringing in yur year-end bank statement t yur tax interview s we can determine the amunt t reprt. If, during the year, yu have dividend incme frm stcks r funds, yu will be sent a Frm 1099-DIV, Dividends and Distributins, frm each cmpany r institutin. Bring these year-end frms t yur tax interview s that we can use them t help calculate yur grss incme. 2. Unemplyment Incme - If yu received state unemplyment cmpensatin (insurance) during the year, it shuld be included as incme n yur return. The average unemplyment benefit is apprximately $300 per mnth. Frm 1099-G shuld be sent t yu frm the payer by January 31 f the fllwing year. The IRS will als receive a cpy f the Frm 1099-G. Cntact yur state ffice if yu have nt received yur Frm 1099-G. 3. Scial Security Incme - If yu received Scial Security payments during the year, sme f these funds may be taxable incme. Bring Frm SSA-1099, Scial Security Benefit Statement (sent by the Scial Security ffice at the end f the year) t yur tax interview s we can determine the amunt f benefits that are taxable, if any. 4. Itemized Deductins if they exceed $6,200 if single, $9,100 if Head f Husehld, and $12,400 fr married filers. Mrtgage r Hme Equity Lan Interest Paid - Generally, qualified mrtgage interest and hme equity lan interest qualify as itemized deductins. Pints may be deductible in full in the current tax year r evenly ver the life f the lan. The mrtgage hlder shuld send a Frm 1098 by January 31 f the fllwing year that shws hw much yu have paid in interest that year. If yu d nt receive a Frm 1098, this infrmatin might be fund n yur mrtgage bill instead. If available, bring yur mrtgage interest infrmatin t yur tax interview. If yu d nt have this infrmatin, it may be pssible t cntact yur mrtgage cmpany directly t btain this infrmatin. Real Estate and Persnal Prperty Taxes Paid - Bring prf f tax payment t yur tax interview. In sme cases, yur mrtgage cmpany will pay real estate taxes fr yu. If s, they will send prf f payment n a Frm 1098 by January 31 f the fllwing year. Medical, Eye Care, and Dental Expenses - If yu itemize yur deductins, medical, eye care, and dental expenses (as well as premiums paid fr health insurance) may be deductible if yur ttal medical expenses fr the year are greater than 10% f yur adjusted grss incme (ttal incme minus federal adjustments allwed, unless yu r yur spuse were brn befre January 2, 1950, then the limit is 7.5% ). There are limits n the amunt yu can deduct fr lng-term care insurance. Keep recrds f yur family's medical, eye care, dental, and health insurance expenses fr the year. G ver these expenses with me t see if yu qualify fr this deductin. And dn t frget t include a number fr the mileage yu traveled in 2014, this is deductable at a rate f 23.5 cents a mile. 111 S. 7 th Street Cañn City, Clrad (719) Dave@My-Online-Tax-Accuntant.cm

3 Cash and Nncash Charitable Dnatins - Charitable cntributins are deductible nly if yu itemize deductins. Bring any canceled checks fr amunts under $250, pay stubs fr amunts the emplyer withheld fr charitable rganizatins (such as fr the United Way), pledge cards, r written acknwledgments r disclsures yu receive frm the rganizatin t which yu made cntributins. Fr any single cntributin f $250 r mre, the IRS requires yu t keep written acknwledgements frm the charitable rganizatin. Fr nncash charitable dnatins, the amunt f yur cntributin shuld be the fair market value f the prperty yu dnated. If yu dnated a car, bat, r ther such vehicle, yur deductin may be limited t the grss prceeds frm the sale f the car by the charitable rganizatin. The rganizatin shuld prvide yu with a written acknwledgement, which yu must attach t yur return if the claimed value f the vehicle is ver $500. Keep recrds f yur cntributins and prvide me with yur cntributin amunts during yur tax interview. And dn t frget t include a number fr the mileage yu traveled in 2014, this is deductable at a rate f 14 cents a mile. State Incme Tax Refund Amunt - If yu received a state r lcal incme tax refund r credit during the year, we need include it as incme if yu deducted this amunt as an itemized deductin in an earlier year. Frm 1099-G, Certain Gvernment and Qualified State Tuitin Prgram Payments, shuld be sent t yu frm the payer by January 31 f the fllwing year. If yu d nt receive Frm 1099-G, cntact yur state ffice. Federal incme tax refunds are nt included in yur incme because they are nt deducted t arrive at taxable incme. If yu are nt a prir-year Accunting and Tax Client, we recmmend yu bring yur last year's federal and state incme tax returns t yur tax interview s that we can use them t help determine state-related itemized deductins. Casualty r Theft Lsses - Yu may be able t deduct part r all f a lss due t theft r casualty, such as vandalism, a fire, r a strm, if the ttal amunt f lsses during the year is greater than insurance reimbursements, $100, and 10% f yur adjusted grss incme (ttal incme minus federal adjustments allwed). Keep any plice reprts, insurance claim frms, appraisals, r ther prf f lss as part f yur recrds. Als, keep any receipts fr repair wrk dne t the damaged prperty. Infrm me f the amunt f yur lss. Als infrm me if yu received any financial assistance t help cver yur lss r cver yur additinal expenses. 5. Self-Emplyed Business Incme & Expenses - If yu run a business as yu are taxed n grss incme minus expenses. Bring yur accunting recrds shwing yur ttals fr incme and expense items t yur tax interview. 6. Sales f Stcks r Bnds - Capital gains and lsses n the sale r trade f investments are classified as either shrt-term (if the prperty is held fr a year r less) r lng-term (mre than ne year). A paper lss, which ccurs when an investment's value drps belw its purchase price, des nt qualify fr this deductin. Bring Frm 1099-B, Prceeds frm a Brker and Barter Exchange Transactins, any brkerage statements (shwing dates bught and sld), and any available cnfirmatin receipts (shws the cst basis and any fees paid) t yur tax interview s that we can get yu the lwest tax rate available fr yur situatin and help yu plan fr next year. 7. Incme frm Partnerships, S Crpratins, Trusts, and Estates - The incme and deductins that these entities pass n t yu are included in yur return. Bring Schedule K-1 r an equivalent statement t yur tax interview. 111 S. 7 th Street Cañn City, Clrad (719) Dave@My-Online-Tax-Accuntant.cm

4 8. Incme and Expenses frm Rentals - If yu wn rental prperty, mney received as rent is reprted as incme. Yu can deduct expenses fr acquiring, maintaining, insuring, and perating the rental prperty. Bring yur accunting recrds t yur tax interview. If yu d nt have accunting recrds that summarize yur transactins, yu can als bring yur receipts r ther prf f incme r expenses. 9. Estimated Taxes - If yu are self-emplyed r paying quarterly estimated taxes, review yur Frm 1040-ES payment vuchers and any state tax vuchers s that yu can ntify me f the amunt yu paid and receive credit fr the payments already made. 10. Alimny Paid r Received - Any alimny yu received in the current year is taxable incme. Any alimny yu paid is deductible n yur tax return. Child supprt payments are nt included in the recipient's incme and they cannt be deducted by the payer. If yu receive r pay child supprt in additin t alimny and yur decree r agreement specifies individual amunts, nly the alimny is taxable r deductible. Review the cpy f yur decree and any recrd f actual payments s that yu will be able t prvide me with the alimny amunt during yur tax interview. 11. Pensin r Retirement Incme - The amunt f retirement r pensin incme subject t federal taxes is based n yur age when yu started receiving distributins and the amunt yu riginally cntributed t the plan. Frm 1099-R, Distributins frm Pensins, Annuities, Retirement r Prfit Sharing Plans, IRAs, Insurance Cntracts, etc., shuld be sent t yu frm the payer by January 31 f the fllwing year. Bring this infrmatin with yu t yur tax interview. 12. Recrd f Purchase r Sale f Residence - Purchase - If yu purchased a hme during the year, yu may be able t claim certain expenses as itemized deductins, fr example mrtgage interest and real estate taxes. Yu shuld receive a Frm 1098, Mrtgage Interest Statement, frm yur mrtgage cmpany by January 31 f the fllwing year that shws the interest, pints, and escrwed real estate taxes yu have paid. Bring this frm and a cpy f yur settlement papers fr the new huse, including Frm HUD-1, Settlement Statement (released by the U.S. Department f Husing and Urban Develpment) if available, t yur tax interview s that we can calculate yur savings. Als, bring statements n real estate taxes yu paid if they are nt shwn n yur Frm Sale - The sale f yur main residence needs t be reprted nly if yu have a gain fr which part f the gain is taxable. T claim the exclusin n the gain frm a sale, yu must have wned the hme and lived in it as yur main hme fr at least tw years. Yu may be able t exclude up t $250,000 ($500,000 fr Married Filing Jintly returns) f the gain frm yur incme. The tax basis f yur prperty needs t be determined. If yu saved yur Frm HUD- 1 frm clsing, certain items listed n that statement, such as the attrney's fees, surveys, agent's cmmissins, title searches, recrding fees, and the transfer and stamp taxes, can be added t the basis. We recmmend yu bring Frm HUD-1 frm the clsing, any applicable receipts, cpies f the sale dcuments, cpies f the riginal purchase dcuments and receipts fr prperty imprvements t yur tax interview. 111 S. 7 th Street Cañn City, Clrad (719) Dave@My-Online-Tax-Accuntant.cm

5 13. Lttery r Gambling Winnings - Gambling winnings greater than $5,000 are usually subject t incme tax withhlding. The amunt f incme tax withheld fr the year is 25% f the amunt paid (the ttal amunt yu wn minus the amunt f yur bet). If yu receive gambling winnings f $600 r mre, the payer shuld send yu a Frm W-2G, Certain Gambling Winnings. This frm shws the amunt yu wn and the amunt withheld, if applicable. Bring this frm t yur tax interview s that we can use it t help calculate yur grss incme. All gambling winnings are taxable, regardless f whether r nt yu received a W2-G. Bring the sum f yur ttal winnings frm all surces with yu. 14. Lttery r Gambling Lsses - Gambling lsses (up t the amunt f gambling winnings) can be deducted n yur incme tax return. Yu must be able t substantiate yur lsses with a written lg that includes the date, lcatin, type f gambling, amunt f wager, and yur winnings and lsses. Certain types f gambling require additinal prf f the wager (fr example, payment slips and unredeemed tickets when playing the lttery r the name and number f a slt machine and the time it was played). Keep a gambling lg (alng with any necessary supprting infrmatin) as part f yur recrds. Ntify me f the amunt f yur lsses, s they can be prperly claimed against yur gambling winnings n yur return. 15. IRA Cntributins - Yu may be able t deduct up t $5,500 fr individual cntributins t an IRA. If yu are age 50 r ver, yu may be allwed t deduct an additinal $1,000 r $6,500. Limitatins fr filing status, participatin in ther retirement plans, and ttal incme may apply. Yu shuld keep any bank r plan administratr dcuments and receipts yu have as part f yur recrds. Ntify me f the amunt f yur IRA cntributin. 16. Child Care Expenses and Prvider Infrmatin - If yu have a qualifying child under age 13, a disabled child f any age, r a disabled spuse, and yu pay smene t prvide care fr them, yu may qualify fr a tax credit f up t 35% f yur expenses. Yu must prvide the IRS with the care prvider's name, address, and taxpayer identificatin number (TIN), which can be a Scial Security number r an emplyer identificatin number (EIN). If the prvider is a daycare center, the TIN is their EIN. If the prvider is an individual, the TIN is their Scial Security number. If the prvider is a church r nn-prfit grup and has n EIN, the wrd Tax-Exempt can be substituted fr the TIN. Yu shuld keep prf f payment receipts with yur recrds. Ntify me f the expenses yu paid during the year. 17. State r Lcal Sales Taxes Paid - Yu can nw elect t deduct state and lcal general sales taxes yu paid n Schedule A in lieu f deducting state and lcal incme taxes. Regardless whether yu live in a state that has high, lw, r n incme tax, if yu have made any majr purchases during the year, keep yur receipts. These may add up t mre than yur state and lcal incme tax. If yu have nt kept receipts that supprt yur state and lcal sales tax expense deductin, yu can use standard amunts prvided by a table specially created by the Internal Revenue Service (IRS) fr this purpse. Yu can als use this tabular amunt if it is greater than yur actual expenses. If yu use this tabular amunt, yu can still claim a deductin fr the sales tax paid n vehicles (bats, cars, etc.) r ther items specifically allwed by the IRS, s keep thse receipts fr yur recrds. 18. Unreimbursed Emplyment-Related Expenses - If yur cmpany did nt reimburse yu fr necessary jb expenses, such as the cst f unifrms, prtective clthing, fees t emplyment agencies, and dues t prfessinal rganizatins, yu may be able t deduct these expenses if yu itemize yur deductins. Keep recrds f yur expenses and we recmmend yu bring them t yur tax interview s that yu can get the maximum deductin. 111 S. 7 th Street Cañn City, Clrad (719) Dave@My-Online-Tax-Accuntant.cm

6 19. Jb-Related Educatinal Expenses - If yu itemize yur deductins, yu may be able t deduct jb-related educatinal expenses as lng as the curses are necessary t maintain yur jb skills but d nt qualify yu fr a new jb. Examples f deductible jb-related educatinal expenses include bks, mileage (56 cents per mile fr 2014), sftware, and tuitin. Make sure yu have written recrds f yur mileage. Additinally, yur jb-related educatinal expenses may qualify yu fr ther tax benefits, such as the Lifetime Learning Credit. Talk with me abut yur situatin t determine whether t take the deductin r the tax credit. 20. Tuitin and Educatin Fees - If yu are a student, r if yu have a dependent wh is a student, yu may be able t either deduct up t $4,000 as an adjustment t incme, r elect ne f the educatin tax credits fr cllege tuitin. Qualified tuitin expenses are fees paid fr yu, yur spuse, r a dependent yu claim an exemptin t attend an eligible institutin. Other restrictins apply. Bring Frm 1098-T, Tuitin Payments Statement, r a cpy f yur cllege tuitin bill t yur tax interview. 21. Student Lan Interest - If yu tk ut a student lan fr yurself, yur spuse, r yu re dependent, yu may be able t deduct up t $2,500 f the interest yu paid during the year. Yu shuld receive a Frm 1098-E, Student Lan Interest Statement, shwing hw much interest yu paid during the year. Ask yur tax preparer hw t get the mst frm these benefits. 22. Mving Expenses - If yu meet distance and time tests relative t the lcatin f yur ld hme and yur new jb, yu may deduct certain mving expenses n yur tax return. The csts f renting a mving van, hiring mvers, and the cst f gas r the standard mileage rate are examples f mving expenses that may be taken as an adjustment t incme. Mving expenses paid by an emplyer may nt be deductible. Keep the IRS infrmed f yur mst recent address by using the IRS change f address acknwledgment, Frm 8822, Change f Address. 23. Freign Taxes Paid - If yu are paying freign incme taxes n yur interest r dividends, these payments will be listed n yur Frm 1099-INT, Frm 1099-DIV, r ther similar statement. Fr ther freign taxes paid r withheld, bring prf f payment t yur tax interview. 111 S. 7 th Street Cañn City, Clrad (719) Dave@My-Online-Tax-Accuntant.cm