Memo – Tax Preparation Checklist

OVERVIEW

I prepared this checklist to assist you in gathering your end-of-year income tax information. Please read each item carefully, as they may now apply to you even though they did not in the past. 

Personal information:

The IRS needs to know exactly who’s filing and who is covered in your tax return. To do this, you will need Social Security numbers and dates of birth for you, your spouse, and your dependents.

Income Records

• Form W-2: wages, salary, and tips
• Form 1099-NEC: freelance (side gig) and/or contract income
  • Business owners, Click Here to see my suggested expense categories.
• Form 1099-MISC: other income
• Form 1099-K: Apps, Online stores, business income
• Form 1099-G: refund, credit, or offset of state/local taxes, unemployment income
• Form W-2G: gambling/lottery winnings
• Form K-1: profits from partnerships, S Corps, trusts, other investments
• Bank, brokerage statements
• Rental income (proof of payments) and expenses totalled by category.
• Alimony received (Remember, alimony rules changed for divorces finalized after 2018)
• Hobby income/prizes/awards

Investment Records

• Form 1099 Consolidated
• Form 1099-B: proceeds on the sale of stocks and/or bonds
• Form 1099-DIV: dividend and distribution income
• Form 1099-INT: interest income on bonds/treasuries
• Form 1099-R: distributions from pensions, profit sharing, IRAs, insurance
• Form 1099-SA: health-care reimbursements
• Form 1099-SSA: Social Security benefits
• Form 2439: undistributed capital gains from mutual funds and/or REITs
• Form 5498: IRA Contributions Information
• Year-end brokerage and mutual fund statements
• Security trade confirmations
• Nondeductible IRA contributions (use Form 8606)

Deduction Records

• Form 1098: mortgage interest and points
• Form 1098-E: student loan interest
• Birth dates and Social Security numbers for all dependents claimed
• Alimony paid (Remember, alimony changed for divorces finalized after 2018)
• Child/dependent care costs (Form W-10, get provider’s TIN and/or EIN)
• Charitable contributions (receipt for non-cash or proof of payment for cash donations; written acknowledgement for donations of $250 or more)
  • Click Here to read my informative memo on Charitable Contributions – Do These Trigger an IRS Audit?
• Out-of-pocket expenses for charity work (receipts for gas, parking, and tolls, or mileage log)
• Most W2 employees can no longer deduct unreimbursed job related expenses. 
  • Qualified Employees Can
    • If someone falls into one of these employment categories, they are considered a qualified employee:
      • Armed Forces reservists
      • Qualified performing artists
      • Fee-basis state or local government officials
      • Employees with impairment-related work expenses
      • No other type of employee is eligible to claim a deduction for unreimbursed employee expenses.
• Rental property expenses (proof of expenses for operating the property)
• Receipts for real estate and personal property taxes (if not included in Form 1098)
  • Even if you pay your property taxes with a mortgage, always verify the total taxes paid with the county or township.
• IRA contributions
• Receipts for health-care expenses
• Property losses due to casualty or theft (police/insurance documentation; receipts for work)
• Gambling losses (written log, receipts, or other proof of wager)
• Receipt for last year’s tax prep fees
• Receipts for large purchases if deducting state and local general (as opposed to income) taxes
• Investment expenses

Tax Credits / Payments Records

• Form 1040-ES: estimated taxes already paid (Each Payment With Amounts and Dates)
• Form 1098-T: tuition payments used for Hope/Learning credits
• Form 1099-INT/DIV: taxes paid on foreign investments
• Form 8880: retirement savings contribution credit

Thank you for choosing us to service your accounting, tax and related needs. We are committed to servicing you and appreciate the opportunity to do so. Should you have any questions, please do not hesitate to contact me. Finally, I hope you had a joyous holiday season and I wish you a happy, healthy and successful new year. I look forward to hearing from you.

Remember, the moment you have a business or tax question is the moment you should be calling me.

Chris Whalen, CPA
(732) 673-0510
81 Oak Hill Road
Red Bank, NJ 07701
www.chriswhalencpa.com

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