USA Personal Taxes - Check your readiness!

Tax Preparation Checklist for USA Personal Tax season

Before you begin to prepare your income tax return for 2019, go through the following checklist. Highlight the areas that apply to you, and make sure you have that information available. Better yet, attach the list to a folder of your tax documents, and check items off as you add them to the folder.

Most people will need:

Personal information

This information tells the IRS exactly who’s filing, who is covered in your tax return, and where to deposit your tax refund.

ü  Social Security numbers, date of birth for you, your spouse, your dependents and address. Please include SSN card and Government issued ID

ü  Copies of last year’s tax return for you and your spouse, if filed separately

ü  Bank account number and routing number, if depositing your refund directly into your account. Please provide a bank check copy for verification

Information about your income

ü  W-2 forms for you and your spouse

ü  1099-C forms for cancellation of debt

ü  1099-G forms for unemployment income, or state or local tax refunds

ü  1099-MISC forms for you and your spouse (for any independent contractor work)

ü  1099-R, Form 8606 for payments/distributions from IRAs or retirement plans

ü  1099-S forms for income from sale of a property

ü  1099-INT, -DIV, -B, or K-1s for investment or interest income

ü  SSA-1099 for Social Security benefits received

ü  Alimony received

ü  Business or farming income - profit/loss statement, capital equipment information

ü  Rental property income and expenses: profit/loss statement, suspended loss information

ü  Prior year instalment sale information - Forms 6252, principal and interest collected during the year, SSN and address for payer

ü  Miscellaneous income: jury duty, gambling winnings, Medical Savings Account, scholarships, etc.

Adjustments to your income

This following items can help reduce the amount of your income that is taxed, which can increase your tax refund, or lower the amount you owe.

ü  Form 1098-E for student loan interest paid (or loan statements for student loans)

ü  Form 1098-T for tuition paid (or receipts/cancelled checks for tuition paid for post-high school)

ü  For teachers: Cancelled checks or receipts for expenses paid for classroom supplies, etc.

ü  Records of IRA contributions made during the year

ü  Receipts for any qualifying energy-efficient home improvements (solar, windows, etc.)

ü  Records of Medical Savings Account (MSA) contributions

ü  Self-employed health insurance payment records

ü  Records of moving expenses

ü  Alimony paid

ü  Keogh, SEP, SIMPLE, and other self-employed pension plans

ü  Any other retirement plan deposits not included above

If you itemize your deductions:

Deductions and credits

The government offers a number of deductions and credits to help lower the tax burden on individuals, which means more money in your pocket. You’ll need the following documentation to make sure you get all the deductions and credits you deserve:

ü  Child care costs: provider’s name, address, tax ID, and amount paid

ü  Education costs: Form 1098-T, education expenses

ü  Adoption costs: SSN of child; records of legal, medical and transportation costs

ü  Forms 1098: Mortgage interest, private mortgage insurance (PMI), and points you paid

ü  Investment interest expenses

ü  Charitable donations: cash amounts, official charity receipts, cancelled checks; value of donated property; miles driven and out-of-pocket expenses

ü  Medical and dental expense records

ü  Casualty and theft losses: amount of damage, insurance reimbursements

Deductions and credits (continued)

ü  Records/amounts of other miscellaneous tax deductions: union dues; unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.)

ü  Records of home business expenses, home size/office size, home expenses

ü  Rental property income/expenses: profit/loss statement, rental property suspended loss information

Taxes you’ve paid

ü  State and local income taxes paid

ü  Real estate taxes paid

ü  Personal property taxes

ü  Vehicle license fees based on value of vehicle

Other information

ü  Estimated tax payments made during the year (self-employed)

ü  Prior-year refund applied to current year and/or any amount paid with an extension to file

ü  Foreign bank account information: location, name of bank, account number, peak value of account during the year

ü  Health coverage information (Form 1095)

Any other tax related information and documents for you or spouse or dependents

Note that the above list is not exhaustive and different documents could apply to your particular situation. Please discuss your tax related information with your personal tax advisor from our practice.

For any queries, feel free to write to us at gaurav@gjmco.in.

Thanks & Best regards,

Knowledge Base team

GJM & Co.

Chartered Accountants

www.gjmco.in