CPA Dave Young discussed what information you need to bring to your CPA for tax preparation Monday during News 8 at Sunrise.
You’ll need to bring identification, income documents (W-2 and 1099 forms), last year’s tax return, social security cards, proof of health insurance and expense documents.
If you’re claiming the Earned Income Credit (EIC) you will need to provide proof from a third party that you’re about to claim the dependent and if you’re claiming the Child Care Tax you’ll need to bring documentation for that as well.
If you’re claiming any tax credits for post-secondary education you will need to bring in documentation for that, such as a 1098-T, and you’ll need to know how many years you’ve claimed the American Opportunity Tax Credit. This credit can only be claimed for four years.
You will need to bring documents showing all of your income for the year. They may include:
10999-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
Form 1098 for Mortgage Interest
Real Estate Taxes
Miscellaneous deductions – such as investment expense, unreimbursed employee expenses
Young said bring canceled checks, receipts, or spreadsheets for any tax-related expenses. 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 child care costs. Some expenses are reported to you, like mortgage interest and student loan interest (on form 1098-E).
If you don’t have all of your tax documents, there are several ways to get copies.
Ask you employer to send a new copy of your W-2.
Banks may have tax documents available for downloading on their website, or can call their customer service number to get a new 1099-INT mailed to you.
Investment brokers will be able to mail you copies of Form 1099-B and 1099-DIV to report stock trading and dividend activity. Or you might be able to download copies from the brokerage web site. Be sure to download a copy of your year-end statement or a realized gain/loss report, as information in those reports can supplement the information found on the Form 1099-B.
If you earned more than $600 as a consultant or independent contractor, your client is required to send you a 1099-MISC to report your income. Even if you didn’t receive a 1099-MISC, you are still required to report the income to the IRS.
For other types of 1099 forms, contact the organization responsible for issuing the tax form.
There are three ways to get copies of your tax documents yourself:
Get a transcript online (the IRS will not have state withholding information)
Mail or fax Form 4506-T
Visit the local IRS taxpayer assistance center
Alternatively, your CPA can request a copy of your transcript. To do this you will need to sign either Form 8821 or Form 2848.
For more information, visit the New York State Society of CPA’s, click here.