Tax season is easier when you show up with the correct forms. Choosing quality tax preparer services without the appropriate tax documents can cause delays and errors.
In this blog, you will get a straightforward, user-friendly tax prep checklist that shows you step-by-step the tax documents you will need to file your taxes, most frequent errors to steer clear off and useful tips to prepare your records before your appointment.
Why Documentation Matters for Tax Preparer Services
How good your return is to the information you provide, no matter how good your account executive is he cannot claim any deduction or credits without proof.
Bringing complete records helps your preparer:
Get your income verified. Claim all the deductions and credits you are entitled to. Minimize the risk of IRS notices. Abbreviation. Minimize delays in filing.
Do not follow up with multiple phone calls. File Electronically without required additional follow-up. Help us come up with accurate estimates as we're self-employed. Retain documentation if an IRS review. A comprehensive list of required documents for your tax preparer appointment will also make your appointment go more quickly as your preparer will not have to continually call you back for documents that he or she is missing.
Bring this for every tax appointment:
- Government-issued photo ID
- Social Security cards or Individual Taxpayer Identification Numbers (ITINs)
- SSN for spouse and dependents.
- Bank-account and routing number for direct deposit
- The previous year tax returns from both federal and the state
- IRS Identity Protection PIN (IP PIN), if issued
- Any letters from the IRS received during the year
How Missing Documents Delay Tax Preparer Services
The absence of documentation is the most common cause for delay in the completion of tax forms. Common examples include:
Missing W-2 from employer Individuals who did not receive a Form 1099-NEC and/or a Form 1099-K (or if it is an entity from which an individual is not receiving an income) will be (A) if the payer receives the income themselves, or (B) if the payer is another taxpayer.
Lost charitable donation receipts Correspondence issues Missing health insurance document when applicable: The program takes health insurance documentation for program fee deduction and justification, and it was missing when it should have been provided. Lost mortgage interest statements. Business expenses have no complete record.
More fee-paying visits Additional emails and phone calls Delayed e-filing, like: Corrected tax returns Include long refund processing I.e.
allow time for refunds to be processed If you wait until you have all the necessary paperwork in hand before booking your appointment, it will become a lot easier.
The Complete Checklist for Your Tax Preparer Appointment
Have all the whole docs needed for the tax filing checklist ready before visiting your preparer.
Identity Documents
- Valid driver's license or state issued photo ID.
- These were:
- (a) issued by Social Security,25
- (b) required by law,26 or
- (c) used at the request of the respondent.
- ITIN documentation (if applicable)
- Passport (if you require it) E.g. Last year's tax return.
- Income Documents
Collect all your income forms. Employment Income Form W-2
Self-Employment Income
Is a tax form, 1099-NEC. This document is filled out if you are an independent contractor. You will need your social insurance number and the amounts you earned in this category.
Form 1099-K (if required); 5. (Use tick mark) to file information on 1099-MISC.
Investment Income
Form 1099-INT Yes, but only if you received a report statement. She should have received from Morgan Stanley a 1099-DIV. If she didn't, ask her to request a copy of it from Morgan.
Be specific if necessary, e.g. Form 1099-B, 'sale of stock'.
Retirement Income
- Choose a copy of the Form 1099-R: Social Security Benefit Statement (SSA-1099)
- Checks of pension income
- Other Income
Rental income figures - Please indicate the percentage ( per week) of the total value of all rental income received in the year which is represented by each of what comes next figures.Contacted Bureau of Labor Statistics to request data on state level unemployment insurance payments.
Deduction Documents
Bring in receipts and statements to back up deductions.
Examples include:
- Mortgage interest (Form 1098)
- Property tax payments Interest on a student loan (Form 1098-E)
- Tuition statements (Form 1098-T)
- Cost of caring for children.
If you have children, this is a significant expense. Cost would include food and essentials, nappies clothing, costs related to school including school equipment and trips, as well as childcare costs to name a few.
Documents Specific to Business Owners Using Tax Preparer Services
Sometimes it is necessary to have extra documents when filing taxes other than the main ones required for tax purposes.
Hand in this documents as an independent businessperson:
- Records of Business Revenue
- Income and Expense Statement
- Sales reports
- Invoices
- Customer payment records
- Merchant processor statements
- Online marketplace income reports
Business Expense Records
- Office expenses
- Advertising costs
- Software subscriptions
- Business mileage logged
- Receipts for business travel
- Receipts for meals
- Home office-related expenses
- Insurance premiums
- Utilities
- Professional memberships
Payroll Records
In the case that there are employees, these documents should be included as well:
- Payroll summaries
- Payroll tax filings
- Employee Forms W-2
- Contractor Forms 1099
Asset Purchases
Documents about what comes next should be handed in:
- Purchases of tools of work
- Computers
- Office furniture
- Tools of trade
- Purchasing cars
- Schedules for depreciation
Estimated Tax Payments
Businesspersons ought to bring:
- Papers showing quarterly estimated tax payments
- Paper-trail of EFTPS payment
- State estimated tax payments
Keeping track of such records helps to verify if paid amounts have been accounted for correctly
Common Mistakes That Slow Down The Process
A large number of taxpayers unknowingly make small errors that delay the whole process.
Getting around the below issues would be very helpful:
- Missing out some or all your Forms W-2
- Forgetting freelance income
- Omitting online payment platform income
How to Organize Documents Before Your Appointment
Some simple organization strategies will be able to cut preparation time a lot.
Seg rego documents under the following categories:A lot of preparers are accepting secured uploads digitally these days.
You might be wanting to scan items like:You should still keep the original copies handy as a kind of safety net.
A good tax preparation list not only shortens the time of the appointment a lot but also gives your tax return a great chance of being correct, legal (within the rules), and that you have received all the deductions and credits you deserve.
Employed by a retired self-employed person or a small business owner - you will find yourself in similar situations: you need to get your documents ready for submitting a tax form. Being organized at home beforehand is a great timesaver, stress reducer and error-prevention method.
Using this tax preparator appointment checklist annually will definitely help you to enjoy a more stress-free and efficient tax preparation services process.
