Key Documents and Information Your Tax Preparer Needs

At Maicher CPA Pllc, we provide a full range of tax services to individuals and businesses, including the preparation of tax returns.  The deadline for filing returns for tax year 2022 is April 18, 2023.   Timely and complete delivery of your key tax documents and related information to Maicher will help ensure an accurate return maximizing deductions while reducing the potential need for filing amended returns.  What is some of the key information and documents?

  • Social Security numbers.  These numbers should be provided for all persons included on the return such as joint filers and dependents.  
  • Income statements.  Primary examples include: (a) W-2s for each job held,  (b) Schedule K-1 for income from trusts, partnerships and S corporations, and (c) all Form 1099s such as income from self-employment (1099-Misc), income from distributions/dividends (1099-Div), proceeds from broker transactions (1099-B) and distributions from a pension, annuity, IRA, insurance contract or other retirement account (1099-R).  Further, be sure to check these forms for accuracy because employers and other issuers sometimes err.  In that event, you should promptly request amended forms accurately reflecting payments.  
  • Tax deduction records.  Prominent examples include: (a) Form 1098 (mortgage interest paid) issued by mortgage loan servicer, (b) Form 1040ES (estimated tax payments) and (c) Form 1098-C (donation of automobiles/boats/aircraft worth more than $500 to a tax-exempt organization).
  • Expense receipts.  Common examples include receipts, invoices, checks and other records for: (a) medical expenses, (b) charitable contributions, (c) IRA contributions, and (d) certain education expenses. For the self-employed, include receipts, checks and similar records for business expenses.   Also, include mileage logs for business related auto travel.
  • Proof of Losses. Some financial losses are deductible such as stock/investment losses and non-business, unpaid debt, for example.  In the case of stock/investment losses,  include the purchase date and original purchase prices.  Concerning unpaid debts, provide documents evidencing the loan and its non-payment.
  • Prior year’s federal and state tax returns.   These documents provide much of the personal and business information preparers need and will also provide insight into your past deductions and sometimes suggest better strategies.  

Take-away:  Accurate and timely delivery of tax records to your tax preparer reduces unnecessary taxes as well as the need to amend returns.   Make an appointment with Maicher today concerning the preparation of your 2022 tax return.  

Sources:

IRS Publication – “Topic No. 305 Recordkeeping” (last reviewed December 12, 2022).

“Tax Prep Checklist: Everything You Need to File Your 2022 Taxes,” Forbes (October 27, 2022).