Documents To Show Your Tax Consultant
Having your return prepared by a professional helps ensure that you pay what is fair and aids in protecting you from audits. But without complete information, even the best and most experienced professional won't be able to complete all the documents as they should be and provide the best ultimate result. Keep in mind that this list is exhaustive âEUR" it goes beyond the bare minimum that a tax consultant will need in order to successfully fill out the various forms. It's designed to help you get the best possible results, not just the minimum necessary to avoid problems with the IRS.
Your W-2
This is the most basic document, given to you by your employer. This is a reflection of your earnings over the previous year and a record of any withholding that you received. For the majority of American taxpayers, this is the document that gets everything started. From this document you can determine taxable income, potential exemptions, and everything else that is relevant to the ultimate amount you pay.
Your 1099
There are a number of different 1099 varieties that might apply to you. Most commonly you receive this if you completed work as an independent contractor, received social security benefits, or had any kind of dividend or measurable capital gains through investments.
A 1099-R
This is a specific form designed to report information about specific retirement and tax-advantages investment accounts. This specifically covers distributions, which have an impact on what is considered taxable.
1098
The 1098 covers interest paid on a mortgage. This only applies to homeowners, who will receive it in the mail from their mortgage company. This interest is deductible in some cases, and is useful for people who plan to itemize. Even if you aren't sure, bring this to your consultant. He or she will be able to use the information contained here to determine whether itemizing or taking a standard deduction will be more advantageous.
1098-E and T
Similar to a regular 1098, but specifically covering student loans. This document is sent by the lending institution and is similarly useful to people who intend to itemize their deductions. The 1098-T reflects the amount spent annually on college, which can be used to claim certain credits.
Anything Else From The IRS
If you received any kind of official looking document, make sure that you bring it along. Your tax consultant needs to see everything you have in order to get a complete picture of your finances, your situation, and what you'll ultimately need to pay the government. Missing any of these could potentially hurt your situation, even if you don't end up using the information they contain. Whether you're filing tax in North Carolina, California, or anywhere in between, coming prepared with all these documents will greatly increase your chances of success.
Your W-2
This is the most basic document, given to you by your employer. This is a reflection of your earnings over the previous year and a record of any withholding that you received. For the majority of American taxpayers, this is the document that gets everything started. From this document you can determine taxable income, potential exemptions, and everything else that is relevant to the ultimate amount you pay.
Your 1099
There are a number of different 1099 varieties that might apply to you. Most commonly you receive this if you completed work as an independent contractor, received social security benefits, or had any kind of dividend or measurable capital gains through investments.
A 1099-R
This is a specific form designed to report information about specific retirement and tax-advantages investment accounts. This specifically covers distributions, which have an impact on what is considered taxable.
1098
The 1098 covers interest paid on a mortgage. This only applies to homeowners, who will receive it in the mail from their mortgage company. This interest is deductible in some cases, and is useful for people who plan to itemize. Even if you aren't sure, bring this to your consultant. He or she will be able to use the information contained here to determine whether itemizing or taking a standard deduction will be more advantageous.
1098-E and T
Similar to a regular 1098, but specifically covering student loans. This document is sent by the lending institution and is similarly useful to people who intend to itemize their deductions. The 1098-T reflects the amount spent annually on college, which can be used to claim certain credits.
Anything Else From The IRS
If you received any kind of official looking document, make sure that you bring it along. Your tax consultant needs to see everything you have in order to get a complete picture of your finances, your situation, and what you'll ultimately need to pay the government. Missing any of these could potentially hurt your situation, even if you don't end up using the information they contain. Whether you're filing tax in North Carolina, California, or anywhere in between, coming prepared with all these documents will greatly increase your chances of success.
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