A Social Security or tax ID number for everyone included on your tax return. You need your own number, but don’t forget your spouse and dependents’ (where applicable) as well. If someone doesn’t have a Social Security number, you’ll need their TIN instead.
Date of birth for everyone on your return.
Form W-2 Wage and Tax Statement. Your W-2 shows how much you earned and how much was withheld for taxes. Your employer has until February to send you your form. If you haven’t received yours, go ahead and request it.
Bank or financial institution statements. Did you make contributions to an IRA? You’ll need a Form 5498. Are you paying down student loan debt? Be sure to grab your Form 1098-E. Did you take out a home mortgage? Be sure to have your Form 1098 Mortgage Interest Statement.
Last year’s state refund amount. If you itemize your deductions, then your state refund is considered income for tax purposes.
Other miscellaneous income records. This could include award money, gambling winnings, lottery pay-outs, etc.
Any (and all) Form 1099s. There are several different types of 1099 forms. Some of the common ones include:
1099-MISC if you are self-employed and received $600+ from a client.
1099-DIV if you received dividends.
1099-G if you received money or benefits from the government.
1099-K if you made third-party transactions (through PayPal or Venmo, for example).
1099-R for distributions from a retirement plan, IRA, pension, annuity.
Business expense records. These could be receipts, credit card statements, records of checks you’ve written, etc. If you have a corporation, a Quickbooks file is very helpful to produce your business tax returns.
Quarterly estimated tax payment receipts. If you make installments to your tax bill during the year, the IRS (and your state) should send you a record of what you paid – similar to a receipt.
Mileage record. In order to get a deduction for your travel, you’ll need to know how many miles you drove for work purposes.
Home office expenses. Taking the home office deduction? You’ll need to know how big your space is in square feet. If you decide to use the actual expense method, you’ll also need a record of your home-related expenses, like utilities and mortgage (or rent).
Receipts for unreimbursed medical expenses. These could include exams, surgeries and preventative care. It could also be braces, glasses, hearing aids, prescriptions – even transportation to and from treatment.
Form 1095: Health insurance coverage forms. If you are enrolled through the Marketplace, you’ll receive Form 1095-A. Insurance providers will send a 1095-B for individuals they cover. If your employer offers coverage, they should send you a 1095-C.
Social Security benefits. If you receive Social Security, you’ll receive an SSA-1099 in January showing the total amount of benefits you received for the year.
Tax return preparation fees. The question I most often get is about fees. As CPAs we must determine fair fees for our services and cannot have contingency fees for a current tax return. The fee must also be fair to the tax preparer, the old adage you get what you pay for is very true here. I have had to amend many tax returns for people who were just looking at fees and not whether the tax return is correct or not, so make sure you have a qualified tax preparer who can get the tax return done accurately and the best way for the clients situation.
Charitable donation receipts. If you are planning to take a tax deduction for the donations you made to charity, you’ll need to be able to back them up with receipts showing the date, value and charitable organization. Be sure to take advantage of Arizona tax credits:
Charitable Organization tax credit like the Prescott Sunrise Lions (800 MFJ, $400 other statuses)
Foster Care Tax Credit (ex. Casa for Kids Foundation, $1,000 MFJ, $400 other statuses)
Public and Charter School Tax Credit (ex. Tri City, $400 MFJ, $200 other statuses)
School Tuition Tax Credit (Private Schools like Sacred Heart and Primavera, $2,324 MFJ, 1,162 other statuses)
AZ Military Family Relief Fund ($400 MFJ, $200 other statuses) Probably need to consider this in 2020, they only have $1 million cap and have probably net this for 2019. QCBN
By David A. Snyder, CPA, MBA, EA
David has been in the accounting and tax business for over 19 years. His company, David A. Snyder CPA, PLLC, conveniently located in downtown Prescott, is an affiliate of E.R. Taxes, LC. He specializes in creating business plans, asset protection and tax preparation for individuals as well as corporations. To reach David call 928.445-0104 Ext.9 or email: email@example.com