Tax Information Required for Tax Preparation 2018 (Download)

Recent tax law changes have made tax preparation for 2018 taxes a more daunting task than in the past. In order to get the best outcome for taxpayers, it will be in the best interest of the taxpayer to bring all documentation listed below.

There is an extra layer of security to prevent fraud in certain tax credits and or filing status. These include, but are not limited to, filing Head of Household, the Earned Income Tax Credit, and Education Credits. It is our responsibility as preparers to ask questions to ascertain the validity of tax credits and filing status.

PERSONAL INFORMATION NEEDED:

• Tax payer number:  Social Security Card (SSN) or Individual Taxpayer Identification Number (ITIN) DRIVERS LICENSE.
• Home Address (including county).
• Dependent Information (Any dependents full legal name, date of birth, and social security number)

DOCUMENTS TO BRING:

• W-2s for each job held during the tax year.
• 1099s All other income reported to the IRS.  Includes dividend income (1099-DIV), interest income (1099-INT & 1099-OID), merchant card and third party network payments (1099-K), miscellaneous income (1099-MISC), retirement plan distribution (1099-R), sale of home or real estate (1099-S) and unemployment compensation (1099-G), State Tax Refund, Unemployment, Social Security, Health Care Reimbursement, Gambling winnings.
• 1098s payments you’ve made (property taxes, mortgage payments, student loans). These should be sent to you by your bank etc.
• 1095-A if you received credit from the healthcare.gov marketplace.
• Income or interest statements received from savings accounts or investments.
• Bank account numbers: If you wish to receive your refund by direct deposit, you will need to bring a voided check.
• Record of Estimated Tax Payments Made: Date and Amount Paid
• Copy of Last Two Years Taxes (if ProBooks did not complete the taxes for you last year).

ITEMIZED DEDUCTIONS:

• Education Expenses:  Scholarships, Student Loan Interest, Itemized receipts of qualified educational expenses (Form 1098-T).
• Child & Dependent Care Expenses: Name, address, Tax ID or Social Security Number of the child care provider.
• Business Expenses and Assets: For self employed individuals (unless we do your books).
• Educator expenses:  If you are a teacher.
• Charitable Contributions:  Detailed list of donations. Have receipts for contributions over $250.
• Vehicles: Vehicle sales tax paid, personal property tax statement for each car, total miles driven for personal use/business. Keep a detailed log of miles driven for business.
• Homeowners: Mortgage interest statement (Form 1098), Real estate taxes paid, Statement of Property Tax Payable in tax year.
• Retirement/IRA: Amount contributed to an IRA/Sep/Simple, and total value as of December 31st of tax year.
• Moving Expenses: Now only for Military on active duty
• Alimony Expenses: Ex-spouse’s full name and social security number. Alimony is no longer deductible for any agreement modified or executed after 12/31/2018
• Healthcare Expenses
• Energy Saving Home Improvements: New limitations apply – credit may be possible for residential energy/solar has credit.
• Foreign Taxes Paid
• Casualty & Theft Losses: This deduction is suspended unless in a federally declared disaster area.
• Miscellaneous (2%) deductions have been eliminated.

An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.

Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.
Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.
More on Enrolled Agents

A 1099 is a form that reports earnings from self-employment to the person(s) and or business performing the work that was paid for, and the IRS.

Most likely, both. The IRS requires that a 1099 be sent to any business, and or individual, providing services, that is not incorporated, who is paid more than $600.00.

Example: You own a computer tech business. You fix my computer system and charge me $1200.00. You also have me complete your books and your tax return, and I charge you $1000.00. Since we are both self-employed, and we paid each other over $600.00 we must complete a 1099 form.

You complete one for me showing the $1000.00 payment you made to me, and I complete one for you showing the $1200.00 payment I made to you. Both of these forms are also sent to the IRS.

No one can guarantee that you won't get audited. Let me say that again…no one, and if anyone tells you they can, they are lying to you.

The IRS has many criteria for selecting returns for audit and that includes random selections, and various deduction red flags. What we can guarantee is that we will tell you of any precarious position we see on your tax return and advise you of how to correct it. We will also help you answer any IRS inquiries and stand by you during any audit.

Not here at Pro Books, we look to complete tax returns by the first due date in March or April depending on if you are a business or personal return. As long as we have complete information, and it is in our office within two weeks of the deadline, you will be filed on time.