Key tax return documents

News

CPA Dave Young of Young and Company CPAs discussed some of the key documents you need to file your tax return Monday on News 8 at Sunrise.

Young said it’s important to gather all of the information you’ll need for your return, especially if you are using a tax professional.  You’ll need identification, income documents, last year’s tax return, Social Security cards, proof of health insurance, and expense documents.

Among the documents that reflect your income for the year are:

W-2’s from your employers

1099-MISC forms for self-employment income

1099-INT (interest) and 1099-DIV (dividends) forms

1099-B forms showing brokerage trades in stocks and bonds

K-1 forms for income from a partnership, small business or trust

1099-SSA form showing Social Security received

For additional income not reported on a W-2 or 1099, people should have written documents supporting other self-employment income, rental income, or alimony.  This could be a spreadsheet, bank statements, or other written evidence.

For documentation of expenses, Young said bring canceled checks, receipts, or spreadsheets for any tax-related expense.  This may include contributions to your traditional or SEP-IRA, moving expenses, college expenses, medical and dental expenses, real estate taxes, gifts to charities and churches, and daycare or childcare costs.  Some expenses are reported to you, such as mortgage interest and students loans (1098-E Form).

If you don’t receive tax forms check with your employer, bank or brokerage firm.  If you earned more than $600 as a consultant or independent contractor, you are required to report the income, even if you don’t receive a 1099-MISC Form.  If needed, Young said there are three ways to get copies of your tax documents:

Get a transcript online (note the IRS will not have state withholding information)

Mail or fax Form 4506-T

Visit the local IRS taxpayer assistance center

Young said your CPA can also request a copy of your transcript, as long as you sign Form 8821 or Form 2848.

For more information about Dave Young and his company, click here.

For more information about the New York State Society of CPAs Get Money Smart initiative, click here.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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