Use the following checklist for better tax preparation on your income tax return. Not every category will apply to you. Just pick the ones that do apply and make sure you have that information available. When you're ready to prepare your income tax return using TurboTax software, you'll be surprised how much time you will save by organizing your information ahead of time.
Before you start - Tax Preparation
Personal information
Income tax information
Adjustments
Itemized tax deductions
Information on household employees
Tax payments
Direct deposit information
Foreign bank account information
Energy-saving purchases
Before You Start - Tax Preparation
Print this article. Check things off as you collect them, and enter information such as Social Security numbers and cash amounts.
If you maintain your financial data in a personal finance software program such as Quicken®, print a report of your financial transactions for 2007. This is an invaluable tax preparation resource as you prepare your income tax return and helps you clearly see where your money goes each year. Having this information in a report is much easier than going through your checks for the entire year.
As you review the report, highlight information you will need for your tax return or make notes to remind yourself of something later. If you need more information on a certain item, the report makes it easier to find the item on the computer when you need the detail. For example, if you know you paid check number 1077 to the IRS but don't know if it was for last year's balance due, an estimated payment for this year, or an extension payment, you can do a search for check number 1077 and get more detail.
Now you're ready to start gathering information. This 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.
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 2007
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 2006, if any
City income tax return from 2006, 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 ________________________________________________
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 2007:
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 2007 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
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