Personal Income Tax Check list

This personal income tax check list is provided to help you gather your thoughts and documents. It is worth 2 minutes of your time to peruse and reflect on what has changed since last year at this time that might make your filings different.

Retrieve supporting documentation for the following:

• Employment Income (W2, 1099-misc)
• Retirement Income (1099-R, 1099-SSA, 1099-RRB)
• Investment Income (1099-Int, 1099-Div, 1099-B, 1099-OID, Schedule K-1)
• Gambling Winnings (W-2G)
• Royalties Income from oil, gas, other – mineral, copyright or patent
• Sale of assets or property (settlement statement)
• Mortgage Refinance documents
  • Origination Fees
  • Closing Costs
  • Mortgage Interest
• Refunds or Government Payments (1099-G)
• Cancellation of debt (1099-C)
• Educator classroom expenses
• Employee business expenses
• Contributions to a Health Savings Account
• Alimony
• Student loan interest
• Tuition and fees for higher education (1098-T)
• Expenses related to child or dependent care
• Contributions to a Retirement Savings Account
• Medical and dental expenses
• Real estate taxes
• Other state and local taxes
• Mortgage interest
• Investment interest
• Charitable Contributions
• Noncash Contributions
• Investment expenses
• Driver’s license or state-issued photo ID
• Dependent’s Social Security Card
• Dependent’s Birth Certificate
• Dependent’s school records, medical records, daycare records, etc.
• Health Insurance Forms (1095, etc)

Ask yourself these Introductory Questions:

• Did your marital status change during the year?
• What is your marital status as of December 31st?
• Can you or your spouse be claimed as a dependent by someone else?
• Did your address change during the year?
• Did you have any changes in dependents during the year?
• Can another person qualify to claim any of your dependents?
• Did you have any childcare expenses during the year?
  • Provider, name address, Federal Tax ID Number, phone number
• Did you have any adoption expenses during the year?
• Did you have any children under age 19 or a full-time student under age 24 with more than $2200 of unearned income?
• Did you apply an over payment of your last year’s income taxes to your current year’s estimated income taxes?
• If you have an over payment of current year income taxes, do you want the refund applied to next year’s estimated taxes?
• Did you make any estimated payments toward your current year income taxes?
• Do you want to have any refund or balance due directly deposited or withdrawn?
• Are you a qualified performing artist?
• Are you a member of the clergy?
• Are you a fee-based state or local government official?

Ask yourself these drill down questions:

Health Care Information

• Did any member of your household have healthcare coverage through the Marketplace?
• Did you receive any distributions from a Health Savings Account (HSA), Archer MSA, or Medicare Advantage, MSA during the year?

Other Income, Purchases, Sales, and Debt Information

• Did you receive any tips not reported to your employer?
• Did you receive any disability income during the year?
• Did you cash any U.S. savings bonds during the year?
• Did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currencies?
• Did you receive any other income not provided with this organizer?
• Did you start a new business or purchase any rental property during the year?
• Did you sell an existing business, rental property, or other property during the year?
• Did you purchase any business assets or convert any assets to business use?
• Did you purchase any gasoline, diesel, or special fuels for non-highway business use?
• Did you buy or sell any stocks, bonds, or other investments during the year?
• Did you sell a principal residence during the year?
• Did you have a principal residence or a piece of real property foreclosed on during the year?
• Did you abandon a principal residence or a piece of real property during the year?
• Did you refinance your principal home or second home or take out a home equity loan during the year?
• Did you receive any principal or interest during this year from property sold in prior years?
• Did you rent out your home or use it for business?
• Did you sell, exchange, or purchase any real estate during the year?
• Did you acquire a new or additional interest in a partnership or S corporation?
• Did you have any debts canceled or forgiven this year?
• Does anyone owe you money that has become uncollectible?
• Did you purchase a new hybrid, alternative motor, or electric motor energy-efficient vehicle during the year?

Itemized Deduction Information

• Did you pay out-of-pocket medical or dental expenses (premiums, prescriptions, mileage, etc.) during the year?
• Did you pay any long-term care premiums for yourself, your spouse, or a dependent during the year?
• Did you receive any state or local income tax refunds from prior years?
• Did you make any major purchases (vehicle, boat, etc.) during the year?
• Did you pay any real estate property taxes or personal taxes during the year?
• Did you pay mortgage interest during the year?
• Did you make cash donations to charity during the year?
• Did you make noncash donations to charity (clothes, furniture, etc.) during the year?
• Did you donate a boat or vehicle during the year?
• Did you have gambling winnings or losses during the year?
• Did you work out of town at any time during the year?
• Examples:
  • Health insurance premiums (paid by you)
  • Long-term care premiums (you)
  • Long-term care premiums (your spouse)
  • Long-term care premiums (dependents)
  • Mileage driven for medical purposes
  • Medical and dental expenses
  • Doctor, dental, etc
  • Prescription medicines
  • Hospital
  • Insulin
  • Glasses and contacts
  • Hearing aids
  • Miles driven for charitable purposes
  • Braces
  • Medical equipment & supplies
  • Amortizable bond premiums
  • Hospital services
  • Laboratory services
  • Nursing services
  • Impairment-related work expenses
  • Unrecovered pension investments
  • State and local income taxes
  • Loss from other activities from Schedule K-1
  • Sales tax
  • Ordinary loss debt instrument
  • Real estate taxes
  • Personal property taxes
  • Mortgage interest paid (attach Form 1098)
  • Mortgage interest paid to an individual

Retirement Information

• Did you receive any payments from a pension, profit sharing, or 401(k) plan during the year?
• Did you make any withdrawals from or contributions to an IRA, Roth, Keogh, SIMPLE, SEP, 401(k), myRA, or other qualified retirement plan during the year?
• Did you receive any Social Security benefits during the year?

Education Information

• Did you pay tuition expenses that were required for attending college, university, or vocational school for yourself, your spouse, or a dependent during the year (even if classes were attended in another year)?
• Did anyone in your household attend a post-secondary school during the year?
• Did you make a contribution to or receive a distribution from an Education Savings Account or Qualified Tuition Program during the year?
• Did you pay student loan interest for yourself, your spouse, or your dependent(s) during the year?

Nitty Gritty Questions

• Did you incur a gain or loss due to damaged or stolen property?
• Did you pay wages to any household employees (babysitter, nanny, housekeeper, etc.)?
• Did you make gifts to any one person in excess of $15,000 during the year?
  • Are you splitting the gift with your spouse?
• Did you make any energy-efficient improvements to your main home during the year?
• Are you a business owner who paid health insurance premiums for your employees during the year?
• Did you receive any notices from the IRS or state taxing authority?
• How do you archive your tax documents?
• Did you receive income or incur expenses associated with a fantasy sport league?
• Did you receive income or incur expenses associated with car sharing (e.g., Lyft or Uber)?
• Did you receive income or incur expenses associated with freelancing (e.g., Upwork or TaskRabbit)?
• Did you receive income or incur expenses associated with fashion sharing (e.g., Poshmark or thredUP)?
• Did you receive income or incur expenses associated with crowdfunding (e.g., Kickstarter or Indiegogo)?
• Did you receive income or incur expenses associated with a short-term rental (e.g., Airbnb or HomeAway)?
• Do you anticipate your income or withholdings to be different next year?
• Did you take a distribution from an IRA and give it to an organization eligible to receive tax-deductible contributions?
• Sale of Capital Assets
  • Date Sales
  • Description of property purchased sold price Cost
  • Description of property:
  • Date acquired
  • Date sold
  • Selling price
  • Mortgages assumed
  • Cost of property sold
  • Depreciation allowed
  • Commissions and expense of sale
  • Interest received
  • Principal payments received
  • Was property sold to a related party?
• Did you receive, sell, exchange, or otherwise acquire any financial interest in any virtual currency at any time during 2019?
• Scholarships or grants not reported on Form W-2
• State income tax refund (retrieve Forms 1099-G)
• Divorce or separation date Amount
• ABLE distributions
• Contributions made to a Health Savings Account (HSA)
• Contributions made to a Self-Employed Pension plan (SEP)
• Payments made for Self-Employed Health Insurance
• Alimony
• Contributions made to a Roth IRA
• Interest paid on a student loan

Self Employed Questions – Profit or Loss from Business

• Business name Employer ID number
• Professional product or service
• Business address, city, state, ZIP
• Federal Employer Tax ID Number
• Was this business started or acquired during 2019?
• Were payments of $600 or more paid to an individual who is not your employee for services provided for this business?
• Was this business disposed of during 2019?
• Income
  • Gross receipts or sales
  • Other income
  • Returns & allowances
• Expenses
  • Advertising expenses
  • Travel expenses
  • Car & truck expenses
  • Total meals
  • Commissions & fees
  • Utilities
  • Contract labor Wages
  • Depletion
  • Other expenses
  • Employee benefit programs
  • Insurance (other than health)
  • Interest – mortgage
  • Interest – other
  • Legal & professional services
  • Office expenses
  • Pension & profit sharing plans
  • Rent or lease (vehicles, machinery, & equipment)
  • Rent (other business property)
  • Repairs & maintenance
  • Supplies
  • Taxes & licenses
  • Inventory at beginning of year Materials & supplies
  • Purchases
  • Other costs
  • Cost of personal use items Inventory at end of year
  • Cost of labor There was a change in inventory method

Income or Loss from Rental Real Estate & Royalties

• Property description
• Address, city, state, ZIP
• Single family residence Vacation / short-term rental Land Self-rental
• Multi-family residence Commercial Royalties Other
• Number of days property was rented Number of days property was used for personal use?
• If the rental is a multi-dwelling unit and you occupied part of the unit, enter the percentage you occupied – be sure to apportion.
• Is this property your main home or second home?
• Was this property disposed of during the tax year?
• Was this property owned as a qualified joint venture?
• Rental Expenses
  • Advertising
  • Auto & travel
  • Cleaning & maintenance
  • Commissions
  • Insurance expenses that apply to the entire property.
  • Legal & professional fees
  • Management fees expenses that pertain ONLY to the rental portion of the property.
  • Mortgage interest
  • Other interest
  • Repairs
  • Supplies
  • Taxes
  • Utilities

Foreign Account Questions

• Did you have a financial interest in or signature authority over a financial account or asset located in a foreign country?
• Did you receive a distribution from, or were you a grantor of, or transferor to, a foreign trust?
• Did you have any income from, or pay taxes to, a foreign country?
• Did you own property in a foreign country?
• Did the aggregate value of your foreign accounts exceed $10,000 at any time during the year?

Profit or Loss from Farming – Schedule F

• Principal product Employer ID number?
• Was this farm disposed of during the tax year?
• Were payments of $600 or more paid to an individual who is not your employee for services provided for this farm?
• Did you file IRS Forms 1099 for the individual farm hands?
• Sale of livestock / other items
• Cost of items bought for resale
  • Beginning inventory for accrual method of accounting
  • Sale of products you raised
  • Ending inventory for accrual method of accounting
• Total cooperative distributions
• Did you use unit-livestock-price or farm-price inventory method?
• Total agricultural payments
• Commodity Credit Corporation (CCC) loans:
  • CCC loans reported
  • CCC loans forfeited
  • Crop insurance proceeds:
  • Amount received in tax year?
  • You elect to defer to next tax year?
  • Amount deferred from previous tax year?
• Car & truck expenses Repairs & maintenance
• Chemicals Seeds & plants purchased
• Conservation expenses Storage & warehousing
• Custom hire (machine work) Supplies purchased
• Employee benefit programs
• Taxes
• Feed purchased
• Utilities
• Fertilizers & lime
• Veterinary
• Breeding
• Medicine
• Freight & trucking Other expenses
• Gasoline, fuel, & oil
• Insurance (other than health)
• Interest – mortgage (paid to banks, etc.)
• Interest – other
• Non-W-2 labor hired
• W-2 wages paid
• Pension & profit-sharing plans
• Rent – vehicles, machinery, & equipment
• Rent – other (land, animals, etc.)

Business use of the Home

• What is the total square footage of your home that was used regularly and exclusively for business?
• What is the total square footage of your home?
• For daycare facilities not used exclusively for business, complete the following questions
  • How many days during the year was the area used?
  • How many hours per day was the area used?
  • Was the daycare facility was in operation for the entire year?
• Mortgage interest?
• Real estate taxes?
• Insurance
• Rent
• Repairs & maintenance
• Utilities
• Other expenses

For more on this please contact me.