An Awesome Federal Income Tax Prep Checklist

[Valerie Brasher-Tharp]

This 2006 federal income tax preparation checklist is divided into relevant categories to help you organize your tax information. As you receive or locate an item, check it off of the list. ...highlight and print the selection below:


Personal Information

Social Security Numbers

Yours
________________________________________________
Your Spouse's
________________________________________________
Dependents'
________________________________________________ ________________________________________________
________________________________________________
________________________________________________

Advance Child Tax Credit Payment

Copy of the IRS notice announcing the amount of your payment
Amount of the payment you received
________________________________________________

Childcare Costs

Cancelled checks or invoices
Childcare provider's name
________________________________________________
Provider's address
________________________________________________
Provider's tax ID or Social Security number
________________________________________________

Education Costs

Receipts for tuition (or cancelled checks) for post-high school education
Tuition statement - Form 1098-T

Adoption Costs

Social Security number or ID number of adopted child
________________________________________________
Receipts or cancelled checks for:
Legal fees
Transportation
Other costs

Income Tax Information

Income From Jobs

Forms W-2 for all employers for whom you and your spouse worked during the year

Investment Income

Interest income - Form 1099-INT
Dividend income - Form 1099-DIV
Proceeds from the sale of stocks, bonds, etc. - Form 1099-B
Confirmation slips or brokers' statements for all stocks, etc., that you sold in 2006
Schedule(s) K-1 (Form 1065) from investments in partnerships
Schedule(s) K-1 (Form 1120S) from investments in S Corporations
Income from foreign investments: Amount of foreign taxes paid (you can find this on the brokers' statements)
________________________________________________
Income from stock option exercises and sales:
Stock option agreement (showing type of options you received)
Stock option statement showing exercise prices of options
Form 1099-B for proceeds from stock sales
Sale of employee stock purchase plan shares:
Form 1099-B for proceeds from stock sales
Stock price on grant date
________________________________________________
Stock price on purchase date
________________________________________________
If the stock sale occurred before qualifying period began, Form W-2 showing "compensation income" from a disqualifying disposition

Income from State and Local Income Tax Refunds

Form 1099-G from state or local governments
State income tax return from 2005, if any
City income tax return from 2005, if any

Alimony Received

Bank statements or record of deposits

Business or Farming Income

Books/accounting records for your business, OR:
Invoices or billings
Bank statements
Cancelled checks for expenses
Payroll records
In addition you will need:

Invoices for major purchases of machinery, equipment, furniture
Logs or other records listing vehicle mileage
Inventory records, if your business maintains an inventory of goods or materials

If You Use Your Home for Business

Square footage of your home office area
________________________________________________
Total square footage of your home
________________________________________________
Total rent paid, if home is rented
________________________________________________
Mortgage interest reported on Form 1098
________________________________________________
Property tax payments from assessor's bill, cancelled checks, or impound records
________________________________________________
Homeowner's insurance premium payments
________________________________________________
Invoices for repairs and maintenance on your house
Utility bills

IRA/Pension Distributions

Form 1099-R for payments from IRAs or retirement plans
Account summary form for the year for your IRA accounts, or
Deposit receipts and contribution records
If you received a distribution from an IRA account, the most-recently filed Form 8606 (if you made contributions in prior years to IRAs that weren't deductible on your income tax return)

Rental Property Income

Profit and loss statements from your property manager, or
Checkbook or cancelled checks for expenses
Form 1099-MISC or other records for rental income paid to you
Mortgage interest reported on Form 1098
Property tax payments from assessor's bill, cancelled checks, or impound records
Record of suspended rental losses from prior years (usually shown on last year's income tax return)

Unemployment Income

Form 1099-G from your state unemployment agency, or
Unemployment check stubs and deposit records

Social Security Benefits

Form SSA-1099

Income From Sales of Property

If the property was sold in 2006:

Sales proceeds: Bill of sale, escrow statement, closing statement or other records
Cost of the property you sold: Invoices, receipts, or cancelled checks
Improvements made to the property: Invoices or construction contracts and cancelled checks
If the property was sold at a profit before 2006 on the installment basis:

Previous year's return – Form 6252, Installment Sales
Amount of principal collected on the installment note owed to you and the date you received each payment
________________________________________________
Amount of interest collected on the note
________________________________________________
Name, address, and Social Security number of the buyer
________________________________________________ ________________________________________________ ________________________________________________

Miscellaneous Income

Jury duty pay records
Form(s) W-2G for gambling and lottery winnings
Receipts for all gambling purchases
Form 1099-MISC for prizes and awards you received
Form 1099-MSA for distributions from medical savings accounts
Scholarship records (if you used the money for anything other than tuition, books, and supplies)
Director's fees receipts if you received money for serving on a corporate board of directors

Adjustments

IRA Contributions

Year-end account summary or bank statements

Student Loan Interest

Form 1098-E showing interest paid, or
Loan statements

Medical Savings Account Contributions

Account statements or
Cancelled checks

Moving Expenses

Invoices from moving companies or
Cancelled checks and
Paycheck stub for moving expense reimbursements

Self-employed Health Insurance

Insurance premium bills, or
Cancelled checks

Keogh, SEP, SIMPLE, and Other Self-employed Pension Plans

Year-end account summary, or
Cancelled checks

Alimony Paid

Cancelled checks

Educator Expenses

Cancelled checks for expenses paid for classroom supplies, etc.

Itemized Tax Deductions

Interest You Paid

Home mortgage interest:

Form 1098, or
Your mortgage statement or bill for January 2006
Points:

Form 1098 if you purchased a home in 2005
Your 2005 tax return if you refinanced in prior year and are deducting points on that loan over its life
Investment interest expense:

Brokers' statements showing margin interest paid
Loan statements for loans taken out to purchase investments

Charitable Donations

Cash donations:

Charity bills, receipts, or cancelled checks
Records of the mileage incurred for charitable purposes (such as Scouts). Note: Non-Katrina-related mileage is 14 cents per mile. Katrina-related mileage earns a .32 cents per mile deduction in 2006.
Donations of Property:

Receipts from charitable agency
Estimated value of property given
________________________________________________
Appraisal fees for expensive donations
________________________________________________
Other charitable donations:

Prior years' tax returns if you have unused charitable contributions (carryovers) from earlier years
Year-end paycheck stub if donations were paid through your wages

Casualty and Theft Losses

Description of property damaged or stolen
Receipts or cancelled checks showing cost of property
Insurance policy and insurance reports showing reimbursement
Appraisal fees if applicable
________________________________________________

Job Expenses

Reimbursement check stubs or reports from your employer
Union dues - paycheck stub for automatic withdrawals
Gifts to clients, etc. - receipts showing date, cost, and description
Supplies - receipts or bills
Property purchased for use in your work - invoices, receipts
Uniform and special clothing costs - bills or paycheck stubs showing deductions
Seminar fees - receipts or invoices
Professional publications and books - receipts or invoices
Receipts for small tools and supplies you purchased Job travel information:
Invoices, receipts, or ticket stubs for transportation
Mileage records per vehicle used
Hotel bills
Restaurant tickets showing name and address of establishment
Parking fee receipts
Job search expenses:
Long-distance call bills
Resume costs (printing, mailing, resume service, etc.)
Transportation bills and mileage records
Employment agency fees
Career counseling costs
Job-related educational expenses:
Tuition, fee, and book receipts for education that maintains or improves your present skills
Transportation receipts
Lodging receipts if you take classes away from home

Other Miscellaneous Tax Deductions

Tax return preparation fees - invoices or cancelled checks
Cost of income tax return preparation software and books - receipts or cancelled checks
Safe deposit box rental fees from bank invoice or statement
________________________________________________
IRA custodial fees (if paid from a non-IRA account)
________________________________________________
Payroll records for office workers managing your investments
Investment advice costs: invoices or bills

Medical and Dental Expenses

Medical bills or cancelled checks
Form SSA-1099 for Medicare premiums paid from your social security benefits
Year-end pay stub if premiums were paid through your wages (only if the deductions were after-tax)
Mileage records for trips to the doctor, clinics, etc. For 2006, the standard mileage rate for medical-related driving is 18 cents per mile.

Taxes

State and Local Income Taxes

Last year's state income tax return
Forms W-2
Cancelled checks for state estimates paid

Real Estate Taxes

Tax collector bills or cancelled checks
Form 1098 or closing statement if you bought, sold, or refinanced property in the current year

Personal Property Taxes

Tax bills or cancelled checks
Automobile licensing bills, if fees are charged annually based on value

Information on Household Employees

Wages paid during 2006
________________________________________________
Employee's Social Security number
________________________________________________

Tax Payments

Quarterly estimated tax payments - Records showing the date paid and amount
If you applied a tax overpayment from 2005 to 2006 - your 2005 income tax return
If you filed or plan on filing extensions for your 2005 tax return - Cancelled checks for payments you made with the extension

Direct Deposit Information

If you want your tax refund deposited directly into your bank account, you need your:

Routing number from the lower left side of one of your checks (usually the first nine digits)
________________________________________________
Bank account number from the bottom of the check or on a bank statement
________________________________________________

Foreign Bank Account Information

Name of financial institution
________________________________________________
Location of financial institution
________________________________________________
Account number
________________________________________________
Maximum value of account
________________________________________________

Energy-saving purchases

Bill of sale for a hybrid automobile purchased in 2006
Receipts for energy-saving improvements to your home in 2006

[Abel]

thanks a ton!