Over the years I've found that people sometimes forget to provide certain documents for preparing their return and then we later have to amend the return or they get a letter from the IRS. Here is what I see as the documents that are most forgotten when filing a return:
1. W-2 from a job that you quit in the previous year but still got paid in the current year. Or a W-2 for a job you worked for a very short period of time. A W-2 should be issued no matter how small of an amount you earned.
2. 1099-SA for health savings account distributions. While most HSAs only allow you to take out proceeds for medical expenses we still have to report this on the tax return. If we do not report the distribution and report how much was used for qualified medical expenses you will get a notice that all distributions are taxable.
3. Form 1098 for mortgage interest in a year you refinanced your home loan. If you refinanced during the year you will have 2 (sometimes 3) mortgage statements. Depending on how you refinanced sometimes your loan is sold to another lender, so you will have your original loan, the company you refinanced with, and the final company that holds your mortgage.
4. 1098-E for student loan interest. If you made under $80,000 (or $160,000 jointly) you can deduct up to $2500 in student loan interest so don't forgot to look up the amount.
5. 1098-T for tuition for you or your dependent. Many times people don't pay for schooling for their children (they are using loans) and thus they don't believe they are allowed any kind of credit. That is not true. You can not take a credit for school paid for with scholarship or grant money but if it is paid for out of pocket (by you or your dependent) or with loans you may be able to claim these education expenses.
6. Child care expenses are also deductible. Even if you have a plan at work that reimburses you for these expenses we still need to provide this information on the tax return. We need the Name, SSN/EIN, and address for your child care provider. We also need the amount you paid for services. If you use an individual you may have to request this information by giving them a W-10.
7. New child information. If you had a new baby during the year we will need legal name, date of birth, and social security number to add the child to the return. Most people don't know their child's social security number off the top of their head so make sure to look it up before getting ready to do your return. Likewise, if you have a parent or other family member that is now living in your home and you will be able to claim him/her as a dependent you will need the same information for that person in order to claim their exemption.
8. Investments you don't touch are frequently forgotten at tax time. If you have a small savings account that earned over $10 you need to report the interest. If you have stock that has dividends being reinvesting they need to be reported. If you have someone managing your accounts you may not have done anything but they might have. So any investment account should be checked to see if you have additional documents
9. Charitable Donations are frequently left off because people think there is a minimum they need before it's deductible. Any donation can be added if you itemize deductions. If you donated clothes or household items (non-cash) then we need to know a value and date of donations. You may not have made the donation for the tax break, but if you're allowed to take it you should save yourself a little bit of money by deducting it.
10. Bank Information! If you get a refund the quickest way to get your refund is by direct deposit. So make sure you have your routing number and account number handy.
1. W-2 from a job that you quit in the previous year but still got paid in the current year. Or a W-2 for a job you worked for a very short period of time. A W-2 should be issued no matter how small of an amount you earned.
2. 1099-SA for health savings account distributions. While most HSAs only allow you to take out proceeds for medical expenses we still have to report this on the tax return. If we do not report the distribution and report how much was used for qualified medical expenses you will get a notice that all distributions are taxable.
3. Form 1098 for mortgage interest in a year you refinanced your home loan. If you refinanced during the year you will have 2 (sometimes 3) mortgage statements. Depending on how you refinanced sometimes your loan is sold to another lender, so you will have your original loan, the company you refinanced with, and the final company that holds your mortgage.
4. 1098-E for student loan interest. If you made under $80,000 (or $160,000 jointly) you can deduct up to $2500 in student loan interest so don't forgot to look up the amount.
5. 1098-T for tuition for you or your dependent. Many times people don't pay for schooling for their children (they are using loans) and thus they don't believe they are allowed any kind of credit. That is not true. You can not take a credit for school paid for with scholarship or grant money but if it is paid for out of pocket (by you or your dependent) or with loans you may be able to claim these education expenses.
6. Child care expenses are also deductible. Even if you have a plan at work that reimburses you for these expenses we still need to provide this information on the tax return. We need the Name, SSN/EIN, and address for your child care provider. We also need the amount you paid for services. If you use an individual you may have to request this information by giving them a W-10.
7. New child information. If you had a new baby during the year we will need legal name, date of birth, and social security number to add the child to the return. Most people don't know their child's social security number off the top of their head so make sure to look it up before getting ready to do your return. Likewise, if you have a parent or other family member that is now living in your home and you will be able to claim him/her as a dependent you will need the same information for that person in order to claim their exemption.
8. Investments you don't touch are frequently forgotten at tax time. If you have a small savings account that earned over $10 you need to report the interest. If you have stock that has dividends being reinvesting they need to be reported. If you have someone managing your accounts you may not have done anything but they might have. So any investment account should be checked to see if you have additional documents
9. Charitable Donations are frequently left off because people think there is a minimum they need before it's deductible. Any donation can be added if you itemize deductions. If you donated clothes or household items (non-cash) then we need to know a value and date of donations. You may not have made the donation for the tax break, but if you're allowed to take it you should save yourself a little bit of money by deducting it.
10. Bank Information! If you get a refund the quickest way to get your refund is by direct deposit. So make sure you have your routing number and account number handy.
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