In Business since 1955 • Member of National Association of Tax Professionals

If employed, you will need to include your W-2. If you received income from interest, dividends, pensions, self-employment, government payments or the sale of property, you will receive Form 1099. We will need the actual tax statements, remember that not all forms will look alike; be sure to check the bottom of year-end statements that may be substitute 1099's. Also, don't forget to include any Schedule K-1s you receive from a partnership or an estate. If you had any income not reported on the forms listed above, make a note for your tax preparer to include it.

If you sold stock during the year, you will receive Form 1099-B that shows the gross proceeds. However, the price you paid for the stock, the cost basis, may not be listed on the 1099-B. If the stock was received as a gift or inheritance, other means of determining the cost will be necessary. For every stock you sold, you should include the basis for your tax professional to calculate the net gain/loss.

If you own a home, you may be able to itemize deductions. Each year, bring the property tax bill and the mortgage interest statement, Form 1098, to your tax appointment. Medical expenses are deductible if they exceed 7.5% of your adjusted gross income (AGI). Prescription drugs, doctor, dental, hospital bills, medical insurance premiums and the mileage to and from the doctor's office enter into this category. Charitable contributions are a good source of deductions. Contributions can be cash, property or out-of-pocket expenses you paid to do volunteer work. If you drove to and from the volunteer work, we'll need to know the number of volunteer miles driven. You need a receipt for any donation you claim. Regarding health insurance, the Marketplace will provide you with Form 1095A, other insurers outside of the Marketplace will send Form 1095B, or if you are covered by your employer you will recieve Form 1095C.

College tuition and dependent care expenses can also be important deductions. Make sure to bring your tuition Form 1098T or your caregivers name, address, tax ID number and the amounts paid. For tax year 2021 if you received the Advance Child Tax Credit you will need to bring Letter 6419 showing the amount of payments received so we can reconcile. 

If you own a rental property, you will need to include both the income and expenses on your tax return. We will need to know the total rental income received for the year and a breakdown of all expenses for the property. These can include interest, taxes, maintenance, supplies, repairs, utility bills, and capital improvements. Call us today to discuss other important documents you will need to aid in preparation of your taxes.

If you are a sole proprietor or sub-contractor we will help you stay on the right side of the IRS. If you own a small business, you may be required to file Schedule C and report your income and expenses. Keeping records is an important part of this process. 

Depending upon your type of work, you may be paid as a subcontractor. Companies who hire and pay contract workers do not deduct money for taxes when they are paid. You will receive Form 1099M or 1099NEC at the end of the year. Depending upon the amount of money you earn with contract work, you may be required to file quarterly tax estimates as well as filing a Schedule C form with your yearly tax return. You should keep excellent records of all income and expenses.