Tax preparation

In general, we will need all documents and information supporting income and tax-deductible expenses to prepare personal Federal tax returns. These documents vary depending on the types of income and expense you have, the types of savings or investments you have, and whether you are employed vs. self-employed. Below are several scenarios. Please look through the ones that apply to you for the types of documents and information that are necessary to prepare your Federal tax return.

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Employed

• Form(s) W-2
• List of un-reimbursed business expenses, if you think their total will exceed 2% of your overall income, by category, e.g., parking fees, union dues, professional memberships
• If you drive your car on the job (other than commuting), mileage information: Business miles, commuting miles, personal miles per vehicle

Self-employed

• Form(s) 1099-Misc
• Statement of total income and expenses by category, e.g., office supplies, rent, insurance, commissions, gifts (limited to $25/person/year), education, etc.
• List of equipment purchased showing date purchased and amount paid (inclusive of sales tax)
• Amount of health insurance premiums paid for taxpayer, spouse and dependents
• If you have vehicle expenses
  - All expenses by category (lease, interest, fuel, maintenance, insurance, etc.) per vehicle
  - Each of business miles, personal miles, commuting miles and total miles per vehicle used for business (2017 business use mileage rates: $0.53.5/mile)
  - If the first year of use, the purchase or lease paperwork
• If you use a home office
  - list of house-related expenses, e.g., utilities, that can be reasonably prorated to the home office
  - If first year for your home office, square footage of area exclusively used for business, total house square footage, and basis of home and land.
• Dates and amounts of quarterly estimated tax payments made to the IRS for Federal income taxes

HEALTH CARE COVERAGE

• Part of the Affordable Care Act (aka ObamaCare) that became effective January 1, 2014 was the requirement that each person listed on your tax return have the required "minimum essential coverage" in terms of health insurance for 2014 and forward, definition of such is here: https://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/ACA-Individual-Shared-Responsibility-Provision-Minimum-Essential-Coverage
• Please provide an executed 2017 Minimum Essential Coverage statement form
• Please advise if you received a premium credit from an Exchange-purchased health care insurance policy.
• Any Forms 1095 with information about health insurance coverage
• Any Forms 1099-SA and 5498-SA showing information about your HSA account
• Even the new tax bill for 2018 retains the individual mandate through the end of 2018

Retirement income/contributions or accounts

• Amounts of contributions to Traditional or Roth IRAs per individual
• Form 1099-R for any withdrawals or rollovers from any retirement account (eg., IRA, SEP, SIMPLE, 401(k), 403(b))
• Social Security - the associated annual statement(s) showing benefits and Medicare premiums, Form SSA-1099

Have savings and/or brokerage accounts

• Form(s) 1099-Int, 1099-OID, 1099-Div, and 1099-B, investment income, for each investment account (check with your broker to ensure the copy you have is the last one issued by the broker)
• Share count, date purchased, and amount paid for each security sold in the year (this is your "cost basis" which we need to calculate the capital gain/loss)
• Total of investment fees paid for investment counsel and advice

Own your own home

• Form 1098 mortgage interest for each mortgage with the mortgage amount broken down into acquisition/improvement use vs. any other use of mortgage funds
• Final settlement statement if you purchased, refinanced or sold a home
• Amount of property taxes you paid if not included in your monthly payment
• RTA excise tax amount portion of your vehicle(s) license tabs (not the total license fee, just the RTA portion)
• Total sales taxes paid or, if you don't know the total, sales tax paid on vehicles and home renovations - Details
• Amounts paid for solar energy improvements to your home
• List of cash/check charitable contributions with total - Details
• List of non-cash charitable contributions with total - Details
• List of medical expenses not covered by insurance (do not include health insurance or Medicare premiums in this amount), including prescriptions, co-pays, and your share of deductible - Details

Have children

• Full name, Social Security #, birth date (only if first year)
• Day care expense amount per child (total should equal next line)
• For kids under 13 as of 12/31/17, amount paid to each care provider (including day camps) along with full name, address, phone #, and tax id # of the care provider (total should equal previous line)
• Amounts paid for higher education expenses by category per child: tuition & fees, books, equipment, room & board, tutoring, other
• Form(s) 1099-Q for any distributions taken from a Qualified Education Plan (529 plan)
• Form(s) 1098-T from colleges for tuition paid AND amount actually paid for tuition in 2017
• Interest paid on student loans
• Income details of any accounts in the child's name (UGMA or otherwise)
• Form 8332 for each child if you are not the custodial parent (must be signed by the custodial parent each year)

Own a rental property

• Statement of total income and expense by category for each property, e.g., mortgage interest, property taxes, utilities, advertising, insurance, repairs, maintenance, HOA dues, etc.
• The number of miles you put on your vehicle(s) driving to and from your rental property
• List of major purchases and improvements showing date purchased and amount paid (inclusive of sales tax)
• We need the # of days your property was actually rented at fair market value and the # of days of personal use (the latter includes you letting anyone use the property without paying fair market value).
• If first rented in 2017, the date the property was put up for rent and the date it was first actually rented to a tenant. And the cost basis of the property broken down into house and land.
• Form 1098 mortgage interest for each mortgage
• Final settlement statement if you purchased or refinanced a rental property

Miscellaneous

• Any other sources of income not listed above - almost all are taxable (eg, unemployment benefits, jury duty pay, gambling winnings, prizes, bartering, cancelled debt, state income tax refunds)
• Job-hunting expenses, Adoption expenses, Unreimbursed job expenses, Job-related education expenses, Tax preparation expenses
• Amounts of any Health Savings Account (HSA) contributions made by you directly (vs. by or via your employer)
• If you participate in a Health Savings Account (HSA), both your 1099-SA and 5498-SA statement (and please review them to see if the amounts make sense to you)
• If you collect unemployment compensation, the annual Form 1099-G showing amounts received and federal tax withheld
• If you pay on student loans, the amount of interest paid
• If you pay or receive alimony, the amount paid/received and the name and social security # of the other party
• Driver's license copies for all adults on the tax return. This was new from the IRS for 2016 and not set in stone yet, but is being considered as a way to combat identity theft. Yes, even if we've know each other for 20 years, we will need this, please
• If this is your first year with us, your 2016 Form 1040, Federal Income Tax Return, with all attached supporting schedules and 2016 state income tax return if you moved into Washington in 2017
• A voided check for direct deposit of refund (within about two weeks of efiling) or automatic withdrawal of tax due (on April 17, 2018) if you want us to change the bank information we have for you from 2016 or set this up for 2017.

Engagement Letter

Each year, we need a new signed engagement letter. A blank copy can be found here:

• Engagement letter, Individual (including sole proprietor and single-member LLC)
• Engagement letter, Business (corporation, multi-member LLC, and partnership)