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Tax Checklist - 2019

This form is to assist you in gathering your income tax information. Use it as a guide for information you need to provide. Please call or e-mail with any questions.

Also make sure to include all tax documents W2’s., 1099’s, 1098’s, 1095’s and any other information provided to you with reportable income.

For expenses, ie: Business, Medical, Rental; All I just need are your totals;

you should hold onto all your receipts.

GENERAL INFORMATION:

□ First, middle initial, and last names of taxpayers and dependents as written on the Social Security cards, and dates of birth for taxpayers and all dependents, especially new dependents.

□ Address (city, state, ZIP), telephone number and e-mail address.

□ Marital Status: Single ___ Married ___ Head of Household ___ Separated ___

□ Did you get married to a same-sex spouse in a state that legally recognizes same-sex marriage?

□ Number of Dependents: ___ Did any dependents have any income? Yes ___ No ___

□ Do all dependents live with you? Yes ___ No ___

TYPES OF INCOME AND TAX REPORTING FORMS:

□ Wages: All Forms W-2 □ Income from Rentals: All 1099-MISC

□ Pensions/Retirements: 1099-R □ Business Income: All 1099-MISC & 1099-K

□ Social Security: SSA-1099 □ Farm Income

□ Bank Interest: 1099-INT □ Alimony Received: Total amount

□ Dividends: 1099-DIV □ Unemployment: 1099-G

□ Commissions: 1099-MISC □ State Tax Refund: 1099-G

□ Tips and Gratuities □ Miscellaneous: Jury Duty, Gambling, Other

□ Sales of Stock, Mutual Funds: 1099-B □ NJ - Health Insurance Coverage 1095-A , 1095-B, 1095-C This is a new mandate from the State of NJ for tax year 2019 If you have no insurance they will assess a penalty, more than the IRS assessed for the 2018 tax year

Foreign Income Matters:

Did you have a financial interest in or signature authority over a financial account located in a foreign country?

Did you have any foreign financial accounts, foreign financial assets, or hold interest in a foreign entity?

BUSINESS INCOME & EXPENSE ITEMS: Not for Employees only Business Owners

This list is not all encompassing. If you don’t see an expense listed below, ASK ME!

Total (Gross) Income Advertising Auto: Parking &Tolls

Business Phone Expense Cell Phone Expense Subcontractors

Commissions Paid Insurance Interest Paid

General Office Expense Rent/Lease Fees Paid Legal or Professional Fees

Repairs Cleaning/Maintenance Dues & Publications

Equipment/Supplies Tools License Fees/Taxes Paid

Utilities Education Expense Association Dues

Bank/Credit Card Fees Postage Meals/Entertainment

Business Miles & Total Miles (A Mileage logbook is required) Hotel/Travel Expense

Asset Purchases (Date, amount and item)

ADDITIONAL ITEMS FOR RENTAL PROPERTIES:

Keys Condo/PUD Fees Management Fees

Mortgage Statements Yard Work Termite Treatment Expense

Utilities Mileage/Travel Other

ESTIMATED TAXES PAID:

Date of payment and amount paid for each Federal and State quarterly tax estimate.

Identity Theft: Did you receive an Identity Protection PIN from the Internal Revenue Service or have you been a victim of identity theft? If so, please provide the IRS letter.

**** HEALTH CARE INFORMATION **** (New for the State of NJ starting tax year 2019. NJ Will be assessing a significant penalty. The IRS no longer be assessing penalties for tax year 2019.

*** MUST ASK QUESTIONS !!!

*** Did you have qualifying health care coverage (employer group plan coverage or government-sponsored coverage) for every month of 2019 for you, your spouse and all members of your family as claimed on your tax return?

*** Did you or anyone in your family qualify for an exemption from the health care coverage mandate?

** Did you acquire health care coverage through: the Marketplace; On your own; Or your employer? --- If yes, provide Form(s) Marketplace 1095-A. Self Purchased -1095-B, Employer-1095-C.

Did you make any contributions to or receive distributions from a Health Savings Account, Archer MSA or Medicare Advantage MSA? If Yes, provide forms 1099-SA or 5498-SA

Organizing Your Deductions/ Credits

A deduction is an expenditure that will reduce your taxable income. There are two kinds of deductions: adjustments to income and itemized deductions. The adjustments to income are the better of the two, as they reduce adjusted gross income, or “AGI.” Itemized deductions reduce your taxable income.

DEDUCTIONS/CREDITS TO INCOME:

Self-employed Health Insurance IRAs /Keogh/SEPs Retirement Saver’s Credit

Health Savings Account (HSA) Teacher Expenses ($250 Max) Adoption Expenses

Penalty on Early Withdrawal of Savings Moving Expenses –only for Military Personal

American Opportunity/Lifetime Learning/Student Loan Interest/Education Expenses

* Total Alimony Paid: Must have name and Social Security number of recipient, and amount paid.

* Child Care/Day Care Credit: Must have name, address, Social Security number or EIN of provider, and the amount paid per child.

ITEMIZED DEDUCTIONS: **For those who Itemize deductions and work in NYS – your Employee Business expenses are allowed on the NYS Tax Return only.**

INTEREST

Mortgage Interest, Form 1098

MEDICAL: (Just provide me with your total amounts and Hold onto your receipts)

Medical & Dental bills Prescriptions Glasses/Contact Lenses

Out-of-pocket expenses Medical miles Lab fees

Hearing Aids Medical/dental/long term care insurance

TAXES: Remember this is now limited to $10,000 total for IRS; $15,000 for NJ: No Limit - NYS

Prior year state tax paid City/local tax Real estate tax

Personal property tax Other

CHARITABLE CONTRIBUTIONS: (Just provide me with your total amounts and Hold onto your receipts)

Church Boy/Girl Scouts United Way/CFC

March of Dimes American Heart Easter Seals

Red Cross MDA/MS YWCA/YMCA

Salvation Army FoodBank Payroll deductions

Out-of-pocket Volunteer Expenses Charitable miles Other

For donations, you need to have a receipt from the done organization, a canceled check, or record of payment to substantiate all contributions made. An itemized listing of all non-cash donations must be maintained with the receipts. List must include the Fair Market Value for each donation of non-cash items especially if amount is greater than $500.

Let’s look at some adjustments / itemized deductions to income in more detail:

Educator expenses apply to K – 12th grade educators, and are limited to $250 of documented supplies per qualified taxpayer. Expenses exceeding $250 can be taken as a miscellaneous itemized deduction.

A health savings account is an account set up exclusively for paying the qualified medical expenses of the account beneficiary or the beneficiary’s spouse or dependents.

Moving expenses include qualified out-of-pocket expenses or an employer reimbursement that was included in your W-2 form. If you received a non-taxable reimbursement, you cannot deduct the expenses.

Self-employment tax. If you are a sole-proprietor, active partner or have miscellaneous income subject to self-employment tax, you can deduct half of the self-employment tax.

Self-employed pension plans. You can deduct all qualified contributions to self-employed SEP, SIMPLE, and qualified plans.

Self-employed health insurance deduction. For this deduction you must be a sole proprietor or an active partner with net business income or a more than 2% shareholder of an S-corporation. The deduction is limited to net profit. Qualified long-term care insurance premiums, subject to age limitations, are also deductible.

Penalty on early withdrawal of savings is deductible and you will find this fee on your form 1099-INT. These penalties are typically incurred when you cash in a CD prematurely.

Alimony paid is deductible, but you must include the Social Security number of the recipient.

IRA deduction. Report only deductible traditional IRA contributions. Roth IRA contributions are not deductible.

Student loan interest. Up to $2,500 of the interest paid on a qualified student loan is deductible. There are income limitations. You will receive Form 1098-E from the entity to which you paid the student loan interest.

Tuition and fees deduction. Up to $4,000 of higher education tuition and fees can be deducted by taxpayers with an AGI under $80,000 if single, or $160,000 if married filing jointly.

Itemized Deductions

Medical expenses in excess of 10% of AGI are deductible as itemized deductions. If you or your spouse is age 65 or older by year end, you may deduct medical expenses in excess of 7.5% of AGI. Medical expenses are deductible in the year paid.

Taxes. State and local income taxes as well as real estate taxes for all property owned are deductible in the year paid. Most income taxes paid to a foreign country or US possession are either deductible as an itemized deduction or can be taken as a credit against tax.

Mortgage interest paid is deductible, with limitations. Mortgage interest is deductible on up to two homes with a combined secured acquisition debt of $1.1 million (home equity debt is generally limited to $100,000). Points on the purchase or a refinance to make major improvements are deductible, but they may need to be amortized over the life of the loan.

Charitable contributions must have written substantiation. If less than $250 is given at one time, the bank draft is sufficient. If the gift is $250 or greater, a written acknowledgement of receipt from the charity is required. In most situations, the charitable deduction is limited to 50% of AGI. Non-cash contributions are limited to the fair market value of the items contributed, if they are used items.

Casualty and theft losses are subject to a $100 deduction and a reduction of 10% of AGI per casualty loss. A casualty is damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.

Miscellaneous deductions subject to a reduction of 2% of AGI. ARE NO LONGER DEDUCTIBLE FOR EMPLOYEES! Except if you work in NYS

Other miscellaneous deductions are deductions that are not subject to the 2% of AGI reduction. Some examples are gambling losses up to the amount of gambling winnings, and special job-related expenses of the disabled. Still allowable to deduct if you itemize deductions.

Be sure to let your tax advisor know if you feel you could be eligible for any of these deductions.

As an enrolled agent (EA), your tax professional must take many hours of continuing education each year to stay up-to-date on the constant changes to the tax code. He or she had to pass a stringent three-part exam, or have relevant experience as a former IRS employee in order to qualify for the EA license. It’s reassuring to know that your tax advisor is an EA: licensed by the US Department of the Treasury, with unlimited rights of representation before the IRS.

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