Information Required to Produce Your Tax Return
*Most forms needed to produce your tax return should be issued or available to you prior to January 31st. If filing jointly, please provide forms and information for both the primary taxpayer and spouse.
Below is information regarding these categories:
- Earned Income
- Unearned Income
- Other Income
- Retirement Accounts
- Home, Property, and/or Rental
- Health
- Dependent/ Children/ College
- Charity or Giving
- Stimulus or Credits
- Other
- Estimated Tax Payments
- Information for Businesses
- Other Business Expenses
Please use this information to complete Step B on the tax return prep step-by-step process. Click here to visit the Tax Season page with more details about this process.
Earned Income
Employment Income
– This is compensation from an employer in the form of wages, salary, or fringe benefits.
– Please provide the W-2 form(s) from your employer(s).
New Job or Move?
– Did you get a new job or move? When a taxpayer changes their place of employment or primary residence, this can impact how the State tax return needs to be completed.
– We will need to know your county of residence and county of employment.
Reimbursed Income
– This is compensation received from an employer to offset one’s own money spent in the line of service for the employer. Depending on the requirements of the employer, this may or may not be taxable income.
– We will need a list of reimbursed items and the total amounts received.
– Please note: The mileage deduction for use of one’s own vehicle for the benefit of an employer will not need to be provided. The Tax Cuts and Jobs Act of 2017 suspended this and certain other employee business expenses until the 2026 tax year.
Independent / External Contractor
– This is income earned while one is considered self-employed in a trade or business. We use a Schedule-C form for most taxpayers in a trade or business. Schedule-F is for farmers or taxpayers producing an agricultural commodity.
– Income may be reported to the individual on a 1099-NEC or 1099-K. If not, we will need the total amounts received as an independent or external contractor.
Unearned Income
Social Security
– This is moneys received from the Social Security Administration or the Railroad Retirement Board during retirement years. This income may or may not be taxable depending on the amount of other income received.
– Please provide form SSA-1099 or RRB-1099.
Disability Income
– This is moneys received from either an insurance company or the Social Security Administration in association with an injury or medical condition that prevents work. This is generally broken down into short-term (worker will go back to work) and long-term (permanently off work) payments.
– Please provide insurance payments. These may be reported on either a W-2 or 1099-R form. Social Security payments are reported on an SSA-1099.
Awards & Prizes
– This refers to money or gifts received due to recognition of an accomplishment or by chance. If it’s a gift and it’s taxable, the fair market value of the gift is to be treated as the amount of monetary income. It might not be taxable if it’s from an employer, for length of service or safety achievement, and is less than a prescribed value as stated in the Internal Revenue Code.
– Generally taxable and reported on a 1099-Misc.
– Please provide a list with the total gifts.
Gambling or Lottery Winnings
– This refers to proceeds from ‘games of chance’ either from a government agency (lottery) or businesses in the operation of these games (casinos, racetracks, etc.). You may be able to offset winnings by losses.
– Please provide the W-2G form if applicable.
– Please provide a list with the total wins and total losses.
Rental Income
– This is the net proceeds (the amount received after deducting all costs and expenses) from the trade or business of renting real estate to another party. We generally file a Schedule-E form, which is used to show income and expenses and describes the property being rented.
– Please provide total income and total expenses.
Royalties
– This is the income from copyrights, patents, or oil, gas, and mineral rights. We will report this on the Schedule-E form which feeds back to the 1040 Return.
– The payor can report to the payee a Form 1099-Misc or K1 for the amount paid. If you do not receive this, we will need the total amounts received.
Installment Sale Income
– This is proceeds from the sale of either tangible or real estate property held for business or investment purposes, in which payments received will extend past one year. The proceeds can be made up of multiple parts– depreciation recapture for sale of business assets claimed in the first year of sale, capital gains for each year a payment is received, and interest charged on the outstanding balance of the sale price.
– Please provide legal documentation of sale.
Hobby Income
– This is gross proceeds from an activity not entered into with a profit motive (not a trade or business). This is taxable income and expenses incurred in the activity that are not used to reduce the gross income.
– Please provide total income.
Sale of Investments
– This is the net gain/loss from the sale of investment holdings. These can be securities held through a Brokerage House or in certificate/electronic form, cryptocurrency, antiques or collectibles, precious metal in bullion or coin form, etc.
– To accurately report the sale, one must have the dates purchased and sold, cost basis, and sale proceeds. You might also need to have sales commissions, reinvested dividends, stock splits and/or dividends, load charges, and original issue discounts.
– Please provide the 1099-B form or Consolidated Broker statement or no reporting if sale was between individuals.
Interest & Dividends
– This is income received from another party for the use of one’s own capital while in the possession of the other party. Earnings from a deposit account at banks, savings and loans, credit unions, etc.
– Please provide the 1099-Int form or the 1099-Div form from Non-Financial Institutions.
Unemployment Compensation
– This is government-provided payments for being unemployed due to no fault of your own.
– Please provide the 1099-G form issued by the state government.
Other Income
Barter Income
– Bartering is an exchange of property or services. If the barter is in connection with an existing business or rental activity, then the barter income will be reported with that activity or else it is claimed on the “Other Income” line of the return.
– Please provide your income, at the time received, and the fair market value of property or services you received in bartering.
Canceled Debt
– This is when a debt is owed and it’s not fully paid. The amount not paid is considered “Cancelled.” Credit Card debt that is cancelled is the most commonly cancelled debt. The cancelled amount is considered income because one received the benefit of the debt, but did not have to pay it back. It is generally taxable, but there may be exceptions to this for specific circumstances.
– Please provide form 1099-C.
Corporation or Partnership
– If you’re involved with a corporation or partnership, you’ll need to report your share of the business income/loss and other activities.
– Please provide the K-1 (1120S or 1065) form.
Estates or Trusts
– Beneficiaries of an Estate or Trust will receive a K-1 form showing their share of the income/loss and other activities from the Entity.
– Please provide the K-1 (1041) form.
Recoveries
– This refers to when a deduction or credit was taken in an earlier year and was later returned or reimbursed in a different year. The amount received is taxable income to counter the earlier reduction.
– Please provide information about recovery deductions and credits.
Lawsuit or Insurance Settlements
– Depending on the reason for the settlement, the amount may or may not be taxable. Personal physical injury payments are not taxable whereas punitive damages for physical injury are taxable. A rule of thumb to determine if a settlement is taxable is to consider the item the settlement is replacing. If the settlement is replacing taxable income, then the settlement will be taxable.
– Please provide legal documentation.
Alimony
– This refers to alimony set by a judge prior to 12/31/2018. Alimony received will be included as income, and alimony paid will not be included as income.
– Please provide total amounts.
Retirement Accounts
Contributions
– This refers to money added or contributed to a retirement account.
– Examples: IRA, Roth, Keogh, SIMPLE, SEP, 401k, 403b, Annuity, or Pension.
– These forms should be provided to you by your Plan Provider or Brokerage Firm, or you may be able to log into your account online and access your annual summary documents.
– Please provide Form 5498(s).
Retirement Income or Distributions
– Moneys received either before or after one’s retirement. Generally fully taxable unless there are IRS-allowed exceptions. Early distribution penalties may apply if money is distributed from the account before certain ages are reached.
– These forms should be provided to you by your Plan Provider or Brokerage Firm, or you may be able to log into your account online and access your annual summary documents.
– Please provide the 1099-R form.
Home, Property, and/or Rental
Sell, purchase, exchange, or refinance
– This is selling, buying, exchanging, or refinancing of any property. Taxed capital gains and losses could be attributed to these types of transactions.
– Please provide your closing documents, cost basis, improvements, and date acquired.
Mortgage interest
– This is interest paid on a mortgage held for the calendar year. This is reported to you from the lender.
– Please provide the 1098 form.
Property taxes paid
– This is any personal property taxes paid for the calendar year. If you itemize deductions on your federal return, you may be eligible to claim a deduction for some or all of the personal property taxes you pay.
– Please provide documentation of property taxes paid.
Excise tax
– This is tax paid for plating automobiles, trailers, boats, recreational vehicles, etc.
– Please provide vehicle registration or receipt.
Large purchases
– This refers to sales tax paid for the purchase of tractors, automobiles, trailers, boats, recreational vehicles, etc.
– Please provide receipt of purchase.
Rental property purchase
– This refers to buying or selling rental property.
– Please provide your HUD documents (from buying and/or closing).
Rent expense
– If you rent your primary residence, you may be eligible for a state deduction.
– Please provide the total amount you paid in rent in the calendar year (this does not include utilities, amenities, etc.).
Home improvements (medical)
– These are home improvements for medical use (examples: wheelchair ramp, handrails, elevators, etc.)
– Please provide a list of improvements with total expenses incurred.
Home improvements (other)
– This refers to substantial home improvements other than medical or energy efficiency. (examples: home office, daycare facility, resale upgrades, etc.)
– Please keep a list of improvements with total expenses incurred and provide only if you’ve sold this property.
Energy Efficiency purchases
– This refers to installing energy efficient appliances to primary residences such as solar panels, geothermal, and exterior doors and windows.
– Please provide all receipts of purchases.
Health
Proof of Health Insurance Coverage
– Each year, employers, insurance companies, and others who provide health insurance must provide proof to the IRS of who they’ve covered.
– Please provide the Health Coverage Information Statement (Form 1095-B or Form 1095-C) as proof you had coverage.
– If you are covered through the marketplace, please provide form 1095-A (this is required to be reported).
Health Savings Account (HSA) Contribution
– This refers to moneys contributed to a HSA account, which is a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses.
– Please provide form 5498-SA. This is available for download on your HSA online account.
Health Savings Account (HSA) Distribution
– This refers to moneys deducted from a HSA account, which is a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses.
– Please provide form 1099-SA. This is available for download on your HSA online account.
– If any amount was used for a non-medical purpose, please provide total amount.
Medical Expenses
– This refers to any costs incurred in the prevention or treatment of injury or disease. Medical expenses include health and dental insurance premiums, doctor and hospital visits, co-pays, prescription and over-the-counter drugs, glasses and contacts, crutches and wheelchairs, mileage driven for treatment, etc. Save all receipts and bills for your records in case of an audit.
– Please provide a list of qualified medical expenses with amounts.
Dependent/ Children/ College
Dependents – This Year
– This is a child, parent(s), or someone to whom you provided more than 50% of support for the past year and who are not claiming themselves as a dependent on another return.
– Please provide proof of this dependent. Examples of proof include: report card, doctor bill, or any official document with the dependent’s name.
New Dependent
– Did you have a child or adopt a child this year?
– Please provide the birth certificate and Social Security Number (SSN) for a newborn.
– Or please provide the birth certificate, Social Security Number (SSN), and cost for the adoption.
Child Care, Nanny, or Caregiver Expenses
– These are expenses accrued throughout the year to provide care for a dependent under the age of 13 and/or in the case of an elderly or disabled dependent.
– Examples: day cares, nanny, afterschool programs (watching/caring for a dependent outside school hours and programs cannot be sponsored by the school; examples: art club, sports, etc.)
– We will need EIN/SSN of location/person preforming the services as well as the name, address, and the amount paid for child care.
529 College Choice Contribution
– This refers to moneys deposited into a 529 Plan, which is a state sponsored college savings account.
– Please provide the 12/31 end-of-year statement for each 529 account with the account number. This can be printed from the 529 online account.
529 College Choice Distribution
– This refers to moneys withdrawn from a 529 Plan, which is a state sponsored college savings account.
– Please provide the 1099-Q from the 529 plan. This can be printed from the 529 online account and/or mailed to you.
Student Loan Interest
– This refers to interest paid on a student loan(s).
– Please provide 1098-E form from Student loan provider(s). This can be printed from an online account and/or mailed to you.
College Tuition Paid
– This refers to scholarships and payments made to a college or university for an individual.
– Please provide form 1098-T from school(s).
– This will show payments made to the school (box 1) and scholarships granted (box 2).
– This can be printed from the college attendee’s school online account under the account and financial section.
Charity or Giving
*Please use our Charitable Giving Summary Worksheet for help preparing this information.
Charity Contribution
– This refers to any receipts showing amounts of charitable giving to the organization(s) (examples: church giving, college, and foundation donations).
Qualified Charitable Distribution (QCD)
– This refers to when you have the distribution from an IRA going straight to a charity. Please inform us if QCD was done.
Goodwill
– Please provide the total value amount of items given in the year (If possible, please provide donation receipts.).
New Item Donation
– You can deduct the cash value of items donated (example: Toys for Tots, food drives, gift baskets for charity events, etc.).
– Please provide the total for the items donated.
Charity Mileage
– This refers to driving for charity events , only if using personal vehicle for volunteering.
– Please provide the total miles driven for charities.
Gifts
– You must report this if you have given a gift of over $17,000 in value (example: stocks, land, cash, vehicle).
– If you gifted one individual more than $17,000 in total, we will need to file a gift tax return in addition to the 1040. Please inform us if you’ve given a gift more than $17,000.
– If you received more than $17,000 in gifts from one individual, nothing needs to be reported.
Stimulus or Credits
IRS Identity Protection PIN (IP PIN)
– The IRS IP PIN is a 6-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number on fraudulent federal income tax returns. A new IP PIN will be generated each year.
– If you signed up to receive an IP PIN, you can find it on your IRS.gov online account or in a letter sent from the IRS on the initial year requested. Click here for more info on the IRS.gov account.
– We cannot electronically file your taxes without this IP PIN.
Electric Car Credit
– All-electric and plug-in hybrid cars purchased new during or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to power the vehicle. State and/or local incentives may also apply.
– For list of cars and possible credit per car, click here.
– Please provide documentation of the purchase of the vehicle(s).
Other
Foreign Accounts
– This refers to if you have any income that is produced outside the US and is not taxed in foreign country.
– If you have any foreign bank accounts totaling a combined amount of over $10,000, you will need to file an FBAR on FINCEN Form 114.
– If any passive income from foreign country is earned, this must be reported (examples: rental income, investments, or income not subjected to foreign taxes).
– Please provide information regarding these accounts.
Cryptocurrency
– This is money made from digital cryptocurrencies by selling, trading, and mining (examples: Bitcoin and Ether).
– This can be found on separate broker statements or online accounts.
– If bought and traded, the gain is taxable.
– Mining and selling – whole sale is taxable income.
– Please provide broker or online account information.
Educator adjustment
– This is allowed to be deducted for an additional $250 of taxable income per person for expenses made out of pocket for teaching K-12, assistance/aids, and administrators
– Please provide a list of expenses.
Roth/ IRA Contributions
– This refers to contributing post-tax dollars to nontraditional investment accounts outside of an employer. If you have an IRA, you may be eligible for up to $7,000 in adjustments.
– Please provide form 5498.
Estimated Tax Payments
Quarterly Estimates
– This refers to payments made to the federal, state or local government regarding income tax for the following tax year.
– Please provide total amounts paid for estimates. These can be found on your IRS.gov or state online account(s). Click here for more info on the IRS.gov account. Click here for info on the INTIME account.
Information for Businesses
Accounting Software
– This refers to any software such as QuickBooks Online that manages your bookkeeping for your business.
– Please provide name, software, or login info for QuickBooks Online.
Business Contacts
– This refers to the partners and/or officers of the business.
– Please provide name, address, social security number or tax ID, percentage of ownership, and title for each contact.
Business Income
– This is the total income from your business, includes gross receipts from sales or services.
– Please provide any 1099s received (1099-K, 1099-NEC, 1099-Misc) and/or total income amount.
Business Interest Expenses
– This is interest associated with a bank loans, business loans, mortgages, or credit cards that is used to pay for business operations or associated expenses.
– Please provide the total amount by loan.
Business Interest Income
– This is interest earned on your business checking or savings account.
– Please provide the 1099-INT, 1099-B, Consolidated 1099 form, or bank statement.
End of the Year Inventory
– This is the cost (not sale price) of the inventory you had on hand as of December 31st of the tax year.
– Please provide the total cost.
Inventory Purchases
– This includes all acquisitions of raw materials and finished goods as well as the labor costs associated with manufacturing the goods for sale.
– Please provide the total cost of these purchases.
Assets Acquired
– This refers to items purchased with a value over $2500. Examples include buildings, equipment, vehicles, etc.
– Please provide a list with the description, cost of each asset, and the first date of business use.
Assets Sold
– This refers to any assets used for operating your business that have been sold or scrapped. Examples include buildings, equipment, vehicles, etc.
– Please provide a list with the sales price of each asset sold along with the disposition date.
Office-in-Home Property
– If you run your business out of your personal residence, a portion of that expense can be deducted. The space must be used exclusively for business with no personal use.
– Please provide the cost of the home, first date of business use, square footage of office space, and total square footage of home.
Office-in-Home Expense
– If you run your business out of your personal residence, a portion of the expenses you incur can be deducted.
– Please provide a list with the total mortgage interest, insurance, and utility amounts paid. If you do not want to track these expenses, the IRS allows you to deduct $5 a square foot for the space used exclusively for business.
Office-in-Home Improvements
– This refers to any substantial improvements made to your home in order to run your business.
– Please provide a list of improvements along with the total expense incurred.
Employee Wages
– This refers to the amount paid to employees or subcontractors for services rendered.
– Please provide forms W-2 and W-3 as well as federal and state payroll returns – forms 940, 941,etc. for employees. In addition, please provide the 1099-NEC documents your business issued for subcontractors.
Employee Expenses
– This refers to the amount paid for employee health insurance, retirement plans, or other benefits.
– Please provide a list of benefits with the total amounts paid.
Business Mileage
– This refers to the miles driven with a personal vehicle for business purposes.
– Please provide the total mileage breakdown between personal and business for the calendar year.
Personal Use
– This refers to the business assets used for personal purposes.
– Please provide a list of uses with percentage amount of assets being used for personal use.
Health Insurance
– This refers to the amount paid for your personal health insurance premiums. This does not include any premiums paid for employees.
– Please provide the total amount paid for the calendar year.
Insurance Other
– This refers to insurance purchased to legally protect the company and individuals practicing/working with licenses (malpractice insurance, umbrella insurance, etc.). This also refers to insurance purchased to operate and function as a business, such as Standard Driver’s Licenses and Commercial Driver’s Licenses (CDLs).
–Please provide the total amount paid for the calendar year.
Meal Expenses
– This refers to business-related meals purchased for or by employees, clients, travel, etc.
– Please provide the total amount.
Entertainment Expenses
– This is refers to the cost of entertainment for Sporting Events, Golf, Concerts, etc. Entertainment is no longer deductible, but it will still need to be reported.
– Please provide the total amount.
Other Business Expenses
Rent
– This refers to the rent you’ve paid on a specific location in order to run your business.
– Please provide the total amount you paid in rent in the calendar year (This does not include utilities, amenities, etc.).
Utilities
– This refers to electricity, gas, water service, etc. paid for a specific location in order to run your business.
– Please provide the total amount paid for the calendar year.
Materials/ Supplies
– This refers to tangible items purchased.
– Please provide the total amount paid for the calendar year.
Advertising/ Marketing
– This refers to advertisements or commercials as well as the cost of institutional or goodwill advertising to gain business. The latter refers to the cost of providing meals, entertainment, and/or facilities as a means of promotion or advertisement.
– Please provide the total amount paid for the calendar year.
Office Supplies
– This refers to items purchased and generally used throughout the year, including sticky notes, highlighters, pens, staplers, copiers, printers, and other office machines.
– Please provide the total amount paid for the calendar year.
Telephone/ Internet
– This refers to bills paid for all telephone and internet services utilized for your business.
– Please provide the total amount paid for the calendar year.
Bank Charges/ Credit Card Fees
– This refers to finance charges, credit card fees, processing fees, and fees generated from loans.
– Please provide the total amount paid for the calendar year.
Legal/ Professional Fees
– This refers to services you’ve paid for from lawyers, accountants, and professional consultants.
– Please provide the total amount paid for the calendar year.
Technology
– This refers to purchases such as computers, software, hardware, security systems, etc.
– Please provide the total amount paid for the calendar year.
Travel
– This refers to expenses related to business travel such as transportation, lodging, parking, etc.
– Please provide the total amount paid for the calendar year.
Training/ Professional Development
– This refers to course fees, tuition, books, classes, workshops, supplies, lab fees, etc.
– Please provide the total amount paid for the calendar year.
Dues/ Subscriptions
– This refers to subscriptions to publications related to your business and memberships to professional organizations, including chamber of commerce, trade associations, civic or public service organizations, medical associations, etc.
– Please provide the total amount paid for the calendar year.
Uniforms
– This refers to purchases made on clothing needed during business hours such as scrubs, work overalls, work boots, etc.
– Please provide the total amount paid for the calendar year.
Repairs
– This refers to repairs made on business assets.
– Please provide the total amount paid for the calendar year.
Other
– This refers to any other business-related expenses not included in the above categories.
– Please provide the total amount paid for the calendar year.
If you have any questions about this process, click here to contact us. Or click here for all of the tax season details.
Blog by Kim Storen, EA – Tax Services Manager
Learn more about Kim and the rest of the Storen Financial team here.