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.
Employed
Self-employed
- Form(s) 1099-NEC
- Statement of total income and expenses by category, e.g., office supplies, rent, insurance, commissions, gifts (limited to $25/person/year), education, etc. (see our Forms & Links page for a business revenue/expense spreadsheet template)
- 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
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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 (details)
- If the first year of use, the purchase or lease paperwork
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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
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 (e.g., 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)
VIRTUAL CURRENCIES
- Form 1099-B statement, if your virtual currency is managed through and investment portfolio, or specific details for each transaction if not.
- Yes or No answer to this IRS-required question: "At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?"
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, Again, we need this only if your total home property taxes are less than $8,000.
- Amounts paid for solar energy and residential energy-efficient 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 it’s your first year with us)
- Day care expense amount per child (total should equal next line)
- For kids under 13 as of 12/31/23, 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 2023
- 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
- Form 1099-MISC
- 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. (see our Forms & Links page for a rental revenue/expense spreadsheet template)
- 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 2023, 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 (e.g., unemployment benefits, jury duty pay, gambling winnings, prizes, bartering, cancelled debt, state income tax refunds)
- 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
- Driver's license copies for all adults on the tax return. This was new from the IRS for 2016 and still not set in stone but is being considered as a way to combat identity theft. Yes, even if we've known each other for 20 years, we will need this
- If this is your first year with us, your 2022 Form 1040, Federal Income Tax Return, with all attached supporting schedules and 2022 state income tax return if you moved into Washington in 2023
- A voided check for direct deposit of refund (within about two weeks of efiling) or automatic withdrawal of tax due (on April 15, 2024) if you want us to change the bank information we have for you from 2022 or set this up for 2023.
Engagement Letter
Each year, we need a new signed engagement letter. A blank copy can be found here: