What to bring to your tax appointment

March 23, 2010

photo credit: hughelectronic

 

As April looms nearer, and people begin preparing for their tax appointments, I am flooded with questions about what to bring to tax appointments. So, in the spirit of tax season, here are some thoughts on how to prepare for your upcoming tax appointment.

The first piece of advice is also the most important (and probably the most ignored): Keep thorough records throughout the year. Each year you resolve to do this, but come April, you are sorting through shoeboxes, file folders, and behind the dresser for your W-2 or last receipt. Start now. Keep all your records in one spot. Keep a spreadsheet of expenses and deductions. And keep these things up-to-date.

The next piece of advice is to begin preparing and organizing your documents a couple weeks before the appointment. I have seen my share of clients who come to appointments with bloodshot eyes and frazzled nerves—and it’s not because they are worried about how much Uncle Sam is going to take—it’s because they spent the whole night before preparing.

So what do you need to bring to your appointment? Ask your accountant. Most will have a list of what they like to see. Since you asked me, here is a list of commonly needed items. You may not need all of these—but it surely won’t hurt to have them. I recommend sorting your information in the following categories:

Income Documents

* All your W-2s. When you receive one in the mail, keep them together with all your other documents.

* Form 1099-INT of interest statements from banks

* Form 1099-DIV from investments

* Form 1099-B from transaction statements from stock/bonds sold during year. Make sure to bring the original purchase price and date of purchase.

* Form 1099-G for any unemployment insurance received

* Scheduled K-1 received from partnership, estate, or S-corporation

* Social Security statements

* Any additional income (or debts) such as miscellaneous income from jobs, gambling winnings/losses, and alimony paid/received.

Deduction Documents

* Form 1098 for mortgage interest

* Mortgage points on a new home or a refinance

* Real estate taxes

* Vehicle taxes and license tab fees

* College and education expenses for you and dependents

* Interest paid on student loans

* Amount paid for child care providers. Also bring a tax ID number.

* Money spent for job-related travel, tools, clothing that you were not reimbursed for

* Contributions to IRA and other savings plans

* Expenses paid for medical items such as co-pays, prescriptions, hospitalizations, eye exams or glasses, mileage for medical appointments

* Donations to charities and churches. Make sure to bring receipts.

* Home improvements for energy efficiency and medical reasons

* Closing costs for real estate you bought or refinanced during the year

Business Records (If you have your own business)

* A spreadsheet with categorized expenses/income

* A mileage log of driving done for business. Make sure you include the date, location driven, and miles. I only need the total miles, but if you are audited, the mileage log can save you.

* Percentage use of items such as internet and cell-phone for business-related expenses

* Names of contractors, addresses, SSN, and monies paid

* Health insurance premiums

If you keep an office in your home, you are eligible to deduct proportional expenses of your utilities, repairs, and improvements. However, these deductions are complicated and can carry fees when you sell your home later.

Even if you have been less than fastidious in your record keeping, you can start preparing yourself now. If you bring these items in an organized fashion, your tax appointment will go much smoother and get you in and out of the appointment quicker.

And you can make next year the one where you keep the detailed records…