Be Prepared for Tax Season
Documents and Forms you will likely need to provide to your CPA.
Being prepared by having complete, organized tax records helps your CPA ensure an accurate tax return is filed, and claiming all income, deductible expenses and credits are included in your return. This helps avoid processing delays that can slow the receipt of any refund you might be owed. Being organized also helps your CPA be more efficient at preparing and finalizing your return, which can save you money on your tax preparation fees.
If you are a client of ATX.TAX, please upload your supporting tax documents into our secured client portal via your individual personalized portal account. Your CPA usually will only begin working on your return once all tax records are provided to the CPA.
Taxpayers should provide all tax statements and letters received from employers, customers, banks, financial institutions, retirement and pension funds, state tax agencies, federal tax agencies (IRS), and home sales. Many banks, financial institutions, mortgage companies, and investment brokers provide electronic copies of the applicable forms in your online account.
If you do NOT have access online and do not receive a Form that you know you should receive, you need to follow up with the provider to obtain the Form. Failure to report all the income reported on these Forms in your tax return will at a minimum lead to inaccurate returns, letters from the IRS, and the need to file an amended return which will cost you more filing fees with your CPA and penalties and interest charges from the IRS. The IRS also receives copies of these forms and will do a cross-reference to your return before accepting and providing a refund if applicable.
A generic list of tax forms you should gather is listed below. This list applies to a majority of taxpayers, but it is not comprehensive. Your list of documents will depend on your unique filing situation. State income tax returns might have available deductions and credits that FED does not that will require specific supporting documentation (ex. Solar tax credits for Hawaii state returns):
· W-2 Forms from your employer(s) for wages, salaries, tips, and other compensation income.
· 1099-INT Forms received from banks and investment accounts for interest income received.
· 1099-B forms Investment sales (sales of stocks, bonds, mutual funds, or other financial instruments) statements provided by your investment brokerage.
· 1099-DIV forms for dividends received
· Brokerage Account Statements: normally your brokerage will provide a year-end statement that includes any interest (1099-INT) dividend (1099-DIV) and investment sales (1099-B) all in one combined statement.
· 1099-R forms for retirement account distributions (pensions, annuities, profit-sharing, IRA’s, etc)
· 1099-MISC or 1099-NEC for contractor / other income received
· 1099-G: Unemployment income
· 1099 SSA: Social Security Benefits
· 1098 Form: Mortgage Interest (and property tax if escrowed) provided by your bank or mortgage loan service company
· Schedule K-1 for your share of income from partnership or S Corps
· State income tax refunds
· Form 5498: IRA and SEP Contributions
· Home Sales: HUD 1 Settlement Statement and S-1 if received
· Support for Charitable Contributions
· Rental Property: Income Statement for the year.
· Virtual Currency: income documents and records of virtual currency transactions
· Estimated Tax Payments made during the year (if any)
· Repayment of any deferred Social Security tax from your 2020 return.
· Letter 6419, 2021 Total Advance Child Tax Credit Payments to reconcile your advance Child Tax Credit payments
· Letter 6475, Your 2021 Economic Impact Payment, to determine whether you're eligible to claim the Recovery Rebate Credit
Being prepared for tax season will enable an efficient and accurate preparation of your final tax return.
If you have questions regarding the documentation and support you need, please contact your CPA for further advice.