To assist in your tax preparation, we have compiled a checklist of the necessary forms that you should upload, depending on your specific circumstances. This will aid you in your tax appointment.
Personal Information
- Tax Identification Numbers must be included in your checklist as a mandatory item for all taxpayers. These are required for completing your taxes.
- Your Social Security Number or Tax Identification Number.
- Your spouse's full name, Social Security Number or Tax Identification Number, and date of birth.
- Identity Protection Personal Identification Number (PIN), if issued by the IRS for you, your spouse, or your dependent.
- Routing and account numbers for direct deposit of your refund or for payment of any balance due.
Information for any Dependents
- Parents and caregivers should gather this information as they review what they need to file their taxes.
- Dates of birth and Social Security Numbers or Tax Identification Numbers for all taxpayers, spouses and dependents.
- Childcare records (including the provider's Tax Identification Number) if applicable, for claiming the Child and Dependent Care Credit.
- Income of dependents and other adults living in your household, for determining eligibility for certain tax credits and deductions.
- Form 8332, which shows that the child's custodial parent is releasing their right to claim a child as a dependent to the non-custodial parent (if applicable), for determining the eligibility of child-related tax benefits.
Sources of Income
Many of these forms may not be required to file taxes every year. For example, investment forms, such as K-1s, are only needed to file taxes if you had distributions or other activity related to those investments during the tax year.
Employed
Unemployed
Self-Employed
- Forms 1099, Schedules K-1, income records to verify amounts not reported on 1099-MISC or 1099-NEC
- Records of all expenses: Records of all expenses are important to keep for tax purposes as they can be used to claim deductions and credits.
- Business-use asset information: When a business purchases assets such as equipment, vehicles, or buildings, it can claim depreciation deductions on its tax return to recover the cost of the assets over time. To claim these deductions, the business must keep records of the cost, date placed in service, and other information about the assets.
- Office in home information, if applicable: If a person uses a portion of their home for business purposes, they may be able to claim a tax deduction for the expenses related to that portion of the home. This is known as the home office deduction. To claim the home office deduction, a person must use the space exclusively and regularly for business purposes and keep records of the expenses related to the home office such as square footage, percentage of the home used for business and proportionate share of expenses like mortgage interest, insurance, utilities, and repairs. It is important to keep accurate records of these expenses and use the correct method to calculate the home office deduction, in order to comply with tax laws and avoid any issues with the IRS
Record of estimated tax payments made (Form 1040–ES): Estimated tax payments are payments made to the IRS throughout the year to pay the expected tax liability on income that is not subject to withholding, such as self-employment income, rental income, and capital gains. These payments are made using Form 1040-ES, which is the estimated tax form for individuals.
It's important to keep a record of all estimated tax payments made, including the date and amount of each payment, and the form number (1040-ES) used for the payment. This will help to ensure that the taxpayer does not underpay their taxes and incur penalties. Additionally, having a record of the payments will also help when preparing the annual tax return, as the taxpayer will need to report the payments on Form 1040, U.S. Individual Income Tax Return.
Rental Income
- Records of income and expenses: Records of income and expenses are important to keep for tax purposes as they provide the information needed to report income and claim deductions and credits on a tax return.
- Rental asset information (cost, date placed in service, etc.) for depreciation : When a person rents out property, they can claim depreciation deductions on their tax return to recover the cost of the rental property over time. To claim these deductions, the person must keep records of the cost, date placed in service, and other information about the rental property.
The cost of the rental property includes not only the purchase price but also any related expenses such as legal fees, closing costs, and improvements made to the property. The date placed in service is the date when the property is ready and available for rent.
It's important to keep accurate records of the cost and date placed in service for each rental property, as these details are used to calculate the depreciation deductions. The records should also include the method and convention used for depreciation, any disposals of rental property, and any repairs and improvements made to the property. Keeping good records of depreciation is critical for tax compliance and can help avoid issues with the IRS.
- Record of estimated tax payments made (Form 1040–ES): Estimated tax payments are payments made to the IRS throughout the year to pay the expected tax liability on income that is not subject to withholding, such as rental income, self-employment income, and capital gains. These payments are made using Form 1040-ES, which is the estimated tax form for individuals.
It's important to keep a record of all estimated tax payments made, including the date and amount of each payment, and the form number (1040-ES) used for the payment. This will help to ensure that the taxpayer does not underpay their taxes and incur penalties. Additionally, having a record of the payments will also help when preparing the annual tax return, as the taxpayer will need to report the payments on Form 1040, U.S. Individual Income Tax Return.
Retirement Income
Pension/IRA/annuity income (1099-R)
Pension, IRA and annuity income are types of retirement income that are reported to the IRS using Form 1099-R. Form 1099-R is used to report distributions from a pension, annuity, profit-sharing, or retirement plan, as well as from an IRA.
It is important to keep accurate records of pension, IRA, and annuity income, including any forms 1099-R that are received. The form will show the amount of income received and any taxes withheld. This information is used to report the income on the individual's tax return and to ensure that the correct amount of taxes is paid.
It is also important to keep records of contributions made to any pre-tax retirement accounts such as traditional IRA, 401k, or SEP-IRA, as they may be tax-deductible and help to lower the taxable income.
Keeping accurate records of retirement income and contributions can help to avoid issues with the IRS and ensure compliance with tax laws.
Traditional IRA basis (i.e., amounts you contributed to the IRA that were already taxed): A traditional IRA is a type of retirement account where contributions may be tax-deductible and the earnings grow tax-deferred, but withdrawals are taxed as ordinary income. The basis of a traditional IRA is the amount of contributions that have already been taxed. These are the funds that have been contributed to the IRA from pre-taxed income.
It's important to keep records of the basis of a traditional IRA, as it will affect the taxes due on withdrawals made from the account. The basis is used to calculate the taxable portion of a distribution, which is the portion of the distribution that is not taxed.
When you take distributions from a traditional IRA, you will have to report the distributions on your tax return and pay taxes on the amount of the distribution that represents the untaxed contributions and earnings. It's important to keep records of all contributions made to the traditional IRA and to consult with a tax professional for guidance on the taxes due on distributions.
Social security/RRB income: SSA-1099, RRB-1099: Social Security income and Railroad Retirement Board (RRB) income are reported to the IRS using Form SSA-1099 and Form RRB-1099, respectively. These forms are used to report the amount of benefits received during the year from the Social Security Administration (SSA) or the RRB.
It's important to keep accurate records of Social Security and RRB income, including any forms SSA-1099 and RRB-1099 that are received. The forms will show the amount of benefits received during the year, and any taxes withheld from the benefits. This information is used to report the income on the individual's tax return and to ensure that the correct amount of taxes is paid.
It is also important to note that a portion of Social Security benefits may be subject to income taxes, depending on the individual's income level and filing status. Keeping accurate records of Social Security and RRB income can help to avoid issues with the IRS and ensure compliance with tax laws. It's recommended to consult with a tax professional or financial advisor to determine the taxes due on Social Security and RRB income.
Savings & Investments or Dividends
Interest, dividend income (1099-INT, 1099-OID, 1099-DIV)
Interest and dividend income are types of investment income that are reported to the IRS using Form 1099-INT for interest income and Form 1099-DIV for dividend income.
These forms are used to report the amount of interest and dividends earned during the year from various sources such as bank accounts, bonds, stocks, and mutual funds.
It's important to keep accurate records of interest and dividend income, including any forms 1099-INT and 1099-DIV that are received. The forms will show the amount of income earned and any taxes withheld. This information is used to report the income on the individual's tax return and to ensure that the correct amount of taxes is paid.
It's also important to keep records of any investment expenses such as investment advisor fees, legal and accounting fees, and safe deposit box rental fees. These expenses may be deductible against investment income.
Keeping accurate records of interest and dividend income can help to avoid issues with the IRS and ensure compliance with tax laws. It's recommended to consult with a tax professional or financial advisor to determine the taxes due on investment income.
Income from sales of stock or other property (1099-B, 1099-S)
Income from the sale of stock or other property, such as real estate, is reported to the IRS using Form 1099-B for stock sales and Form 1099-S for real estate transactions. These forms are used to report the proceeds from the sale of these assets.
It's important to keep accurate records of any income from the sale of stock or other property, including any forms 1099-B and 1099-S that are received. The forms will show the proceeds from the sale and any taxes withheld. This information is used to report the income on the individual's tax return and to ensure that the correct amount of taxes is paid.
It's also important to keep records of the purchase price and any related expenses such as broker's commission and legal fees for the stock or property being sold. This information is used to determine the capital gain or loss on the sale, which is used to calculate taxes owed on the transaction.
Keeping accurate records of income from the sales of stock or other property can help to avoid issues with the IRS and ensure compliance with tax laws. It's recommended to consult with a tax professional or financial advisor to determine the taxes due on the sale of stock or other property.
Dates of acquisition and records of your cost or other basis in property you sold (if basis is not reported on 1099-B)
When you sell assets such as stocks, real estate, or other property, you may have to pay taxes on the profit you made from the sale, which is known as capital gain. The cost or other basis of the asset is used to calculate the capital gain or loss, which is the difference between the selling price and the cost or other basis.
It's important to keep accurate records of the date of acquisition and the cost or other basis of any property that you sold. This information is used to calculate the capital gain or loss on the sale, which is used to calculate taxes owed on the transaction. If the basis is not reported on Form 1099-B, the taxpayer is responsible for determining the basis and reporting it on the tax return.
The cost or other basis includes the purchase price of the asset, as well as any additional costs such as purchase fees, taxes, and other expenses incurred in connection with the purchase of the asset.
Keeping accurate records of the date of acquisition and cost or other basis of property can help to avoid issues with the IRS and ensure compliance with tax laws. It's recommended to consult with a tax professional or financial advisor to determine the correct basis for the asset.
Health Savings Account and long-term care reimbursements (1099-SA or 1099-LTC)
A Health Savings Account (HSA) is a type of savings account that is used to pay for medical expenses. The contributions to an HSA are tax-deductible, and the funds in the account grow tax-free. Withdrawals from the account are also tax-free as long as they are used to pay for qualified medical expenses.
Long-term care insurance policies also offer tax benefits. Long-term care reimbursements are reported to the IRS using Form 1099-SA or Form 1099-LTC. These forms are used to report the amount of distributions made from the HSA or long-term care insurance policy during the year.
It's important to keep accurate records of HSA and long-term care reimbursements, including any forms 1099-SA and 1099-LTC that are received. The forms will show the amount of distributions made during the year, and any taxes withheld. This information is used to report the income on the individual's tax return and to ensure that the correct amount of taxes is paid.
It's also important to keep records of the contributions made to an HSA and any qualified medical expenses paid for with the HSA funds, as well as any long-term care insurance policy payments, including the premiums and the reimbursement received. This information is used to ensure that HSA and long-term care insurance benefits are being used correctly and to claim the tax benefits associated with these accounts.
Keeping accurate records of HSA and long-term care reimbursements can help to avoid issues with the IRS and ensure compliance with tax laws. It's recommended to consult with a tax professional or financial advisor to determine the taxes due on HSA and long-term care reimbursements.
Expenses related to your investments
Expenses related to investments such as stock or real estate can be deductible against investment income and can help to reduce the amount of taxes owed on the investment income. It's important to keep accurate records of all expenses related to your investments, including:
- Investment advisory fees: fees paid to investment advisors, financial planners, or brokers for investment advice or management services.
- Legal and accounting fees: fees paid to attorneys or accountants for services related to investments, such as tax planning or preparation of tax returns.
- Safe deposit box rental: fees paid to rent a safe deposit box to store investment-related documents and records.
- Travel expenses: costs incurred for transportation, lodging, and meals related to investment-related activities such as attending investment seminars or visiting rental properties.
- Investment publications and subscriptions: fees paid for investment-related publications, such as financial newspapers and magazines, and online subscriptions to investment websites.
It's important to keep accurate records of these expenses, including receipts, invoices, or other documentation. This information is used to calculate the amount of deductions on the individual's tax return and to ensure compliance with tax laws. It's recommended to consult with a tax professional or financial advisor to determine the amount of deductions that can be claimed on investment-related expenses.
Record of estimated tax payments made (Form 1040–ES)
Form 1040-ES is used to calculate and report estimated tax payments for individuals. Estimated taxes are payments made to the IRS on a quarterly basis, rather than all at once when the individual files their tax return. These payments are based on an estimate of the individual's income, deductions, and tax liability for the current year.
It's important to keep accurate records of estimated tax payments made using Form 1040-ES, including copies of the forms and proof of payment, such as cancelled checks or bank statements. This information is used to ensure that the correct amount of estimated taxes have been paid and to avoid any penalties for underpayment of taxes.
Individuals who are self-employed, have a significant amount of investment income, or receive income that is not subject to withholding taxes are required to make estimated tax payments. It's recommended to consult with a tax professional or financial advisor to determine if estimated tax payments are necessary and to ensure compliance with tax laws.
Transactions involving cryptocurrency (Virtual currency)
Transactions involving cryptocurrency, also known as virtual currency, must be reported on an individual's tax return. The IRS has issued guidance stating that virtual currency is treated as property for federal tax purposes, and transactions involving virtual currency are subject to tax laws similar to those for transactions involving other forms of property.
It's important to keep accurate records of all transactions involving virtual currency, including:
- Date of each transaction
- Type and amount of virtual currency
- Fair market value of the virtual currency in U.S. dollars on the date of the transaction
- Names and addresses of the parties involved in the transaction
- Any other information required by the IRS
These records are necessary to calculate the gain or loss on each transaction, which is used to calculate taxes owed on the transaction. It's also important to keep records of any virtual currency held as an investment, including the cost basis and the fair market value of the virtual currency at the end of the tax year.
When it comes to mining, staking or any other form of earning cryptocurrency, those activities are considered as self-employment income and should be reported on Schedule C of form 1040. Self-employed individuals are also required to pay self-employment taxes.
It's recommended to consult with a tax professional or financial advisor to determine the correct tax treatment of virtual currency transactions and ensure compliance with tax laws. The IRS also provide guidelines for reporting virtual currency transactions which can be found on their website.
Other Income & Losses
Payment Card and Third Party Network Transactions - 1099-K
Payment Card and Third Party Network Transactions are reported to the IRS using Form 1099-K. This form is used to report certain payment transactions that occur through payment card networks and third-party networks.
Form 1099-K reports the gross amount of all reportable payment transactions to the IRS and to the person who received the payments. It's important to keep accurate records of all payment card and third-party network transactions, including the gross amount of each transaction, the date of each transaction, and any other information required by the IRS.
The 1099-K is issued by the payment settlement entities (PSEs) like banks, payment processors, and third-party network transactions facilitators, to the merchants and individuals who received the payments. If you are a business owner or an independent contractor and you received more than $20,000 and 200 transactions from payment card and third-party network transactions, you should expect a 1099-K form.
It's important to reconcile the amounts reported on Form 1099-K with your own records to ensure that the information is accurate. Any discrepancies should be reported to the PSE and corrected. If you don't receive a Form 1099-K or if the information on the form is incorrect, you should contact the PSE or the IRS.
It's recommended to consult with a tax professional or financial advisor to determine the correct tax treatment of payment card and third-party network transactions and ensure compliance with tax laws.
Gambling income (W-2G or records showing income, as well as expense records)
Gambling income, such as winnings from casinos or horse racing, is considered taxable income by the IRS and must be reported on your tax return. If you receive a Form W-2G, Certain Gambling Winnings, the payer is required to report the amount of your winnings to the IRS and to you. Additionally, you can use records such as casino receipts or horse racing tickets to report your winnings. Gambling expenses, such as transportation, lodging, or meals, may be deducted as long as they are directly related to the gambling activity, but they are subject to certain limitations. It is important to keep detailed records of your gambling income and expenses, as well as any supporting documentation, in case of an audit.
Jury Duty Records
Jury duty records refer to the documents that show that an individual has served on a jury. These records can include the jury summons, the notice of acceptance or disqualification, and any documents that relate to the individual's attendance or pay for their service. Employers are legally required to excuse employees from work for jury duty, and an employee may be entitled to be paid for their time spent serving on a jury. Employers may ask for proof of jury duty service, such as a copy of the jury duty summons or proof of attendance. It is important for an individual to keep accurate records of their jury duty service, including any pay received and any days missed from work.
Hobby income and expenses
Hobby income refers to money earned from a hobby or leisure activity, such as selling items you make or collect, or renting out property for events. Expenses related to a hobby, such as materials, equipment, or travel, can be used to offset the income earned from the hobby, reducing the amount of taxes owed. However, the IRS has specific rules for when a hobby can be considered a business, which has a different tax treatment.
The IRS considers a hobby to be a legitimate business if it is engaged in for profit and has a reasonable expectation of earning a profit. If it is not for profit it is considered a hobby and expenses can only be claimed as a miscellaneous itemized deduction, subject to 2% of the adjusted gross income (AGI) and not all expenses are allowed.
It is important to keep accurate records of all income and expenses related to the hobby, including receipts and invoices, in case of an audit. It is also important to understand the different tax implications between hobby and business and to consult a tax professional if you have any doubts.
