Preparing for Your Tax Appointment
Knowing (and having) all the information needed to prepare an accurate tax return can be a daunting task. When clients ask what they need to bring to an appointment our typical answer is simple: Everything. That might be overstating it a bit but it is not too far off either. Every piece of information that is available will help fill in the puzzle known as an income tax return.
For basics, all names, dates of birth, and social security numbers for anyone listed on the return is needed. If you a due a refund and would like a direct deposit then your bank routing and account number will be needed as well. For new clients Buckeye CPA recommends bringing in the last 3 years worth of tax returns and depreciation/fixed asset schedules (if applicable). We like to review old returns for an overall view of your tax history and also to find any carryover items or other items that might affect the current year.
External tax documents are sent to you from outside sources like your employer, companies you provide services for, or your lender/bank. These documents include W-2's, 1099's, 1098's, and K-1's. These documents usually are received in January into early February but late and corrected versions can be issued months after an initial document was sent, especially in the cases of brokerage and investment reporting. It is important to bring all your external tax documents to your income tax return preparer.
Internal tax and financial documents used by businesses and people who are self employed, own rental properties, have business expenses, or itemize deductions. These documents come in all shapes, sizes, and detail level. They include internal financial statements, lists of income and expenses, mileage logs, equipment purchases, receipts, bank statements, gifts to charity, and medical expenses. Some clients have detailed Quickbooks printouts and others have numbers scribbled on a piece of paper. The important thing is to have all your income totaled and your expenses broken down into categories for the year.
Legal documents such as divorce decrees, wills, purchase/sale agreements, leases, HUD-1 statements, incorporation documents, and operating agreements are useful in determining how to treat certain events. It is important to treat these events properly and consistent with the law or agreement that is in place.
Legal documents such as divorce decrees, wills, purchase/sale agreements, leases, HUD-1 statements, incorporation documents, and operating agreements are useful in determining how to treat certain events. It is important to treat these events properly and consistent with the law or agreement that is in place.
