Checklist fr Preparing Yur Incme Tax Return Use the fllwing detailed checklist t gather infrmatin fr preparing yur incme tax return. Nt every categry will apply t yu. Just pick the nes that d apply and make sure yu have that infrmatin available. When yu re ready t prepare yur return using a TurbTax prgram, yu ll be surprised hw much time yu will save by rganizing yur infrmatin ahead f time. Befre yu start Persnal infrmatin Incme infrmatin Adjustments Itemized deductins Infrmatin n husehld emplyees Tax payments Direct depsit infrmatin Freign bank accunt infrmatin Befre Yu Start Print this article. Check things ff as yu cllect them, and enter infrmatin such as Scial Security numbers and cash amunts. If yu maintain yur financial data in a persnal finance sftware prgram such as Quicken, print a reprt f yur financial transactins fr 2004. This is an invaluable resurce as yu prepare yur tax return, and helps yu clearly see where yur mney ges each year. Having this infrmatin in reprt frm is much easier than ging thrugh cancelled checks r yur check register fr the entire year.
As yu review the reprt, highlight infrmatin yu will need fr yur return r make ntes t remind yurself f smething later. If yu need mre infrmatin n a certain item, the reprt makes it easier t find the item n the cmputer when yu need the detail. Fr example, if yu knw yu paid check number 1077 t the IRS but dn t knw if it was fr last years balance due, an estimated payment fr this year, r an extensin payment, yu can d a search fr check 1077 and get mre detail. Mst sftware packages have a variety f reprts that yu can print t help with yur specific needs. Nw yu re ready t start gathering infrmatin. This checklist is divided int relevant tax categries t help yu rganize yur infrmatin. As yu receive r lcate an item, check it ff f the list. Persnal Infrmatin Scial Security Numbers Yurs Yur Spuse's Dependents' Advance Child Tax Credit Payment Cpy f the IRS ntice annuncing the amunt f yur payment Amunt f the payment yu received Childcare Csts
Cancelled checks r invices Childcare prvider's name Prvider's address Prvider's tax ID r scial security number Educatin Csts Receipts fr tuitin (r cancelled checks) fr pst-high schl educatin Tuitin statement - Frm 1098-T Adptin Csts Legal fees Transprtatin Other csts Incme Infrmatin Incme Frm Jbs Frms W-2 fr all emplyers fr whm yu and yur spuse wrked during the year Investment Incme Interest incme - Frm 1099-INT Dividend incme - Frm 1099-DIV Prceeds frm the sale f stcks, bnds, etc. - Frm 1099-B
Cnfirmatin slips r brkers' statements fr all stcks, etc. that yu sld in 2004 Schedule(s) K-1 (Frm 1065) frm investments in partnerships Schedule(s) K-1 (Frm 1120S) frm investments in S Crpratins Incme frm freign investments - Amunt f freign taxes paid (yu can find this n the brkers' statement) Incme frm stck ptin exercises and sales: Stck ptin agreement (shwing type f ptins yu received) Stck ptin statement shwing exercise prices f ptins Frm 1099-B fr prceeds frm stck sale Sale f emplyee stck purchase plan shares: Frm 1099-B fr prceeds frm stck sale Stck price n grant date Stck price n purchase date If stck sale ccurred befre qualifying perid begins, Frm W-2 shwing "cmpensatin incme" frm a disqualifying dispsitin Incme frm State & Lcal Incme Tax Refunds Frm 1099-G frm state r lcal gvernments State incme tax return frm 2003 City incme tax return frm 2003, if any Alimny Received Bank statements r recrd f depsits Business r Farming Incme Bks/accunting recrds fr yur business, OR:
Invices r billings Bank statements Cancelled checks fr expenses Payrll recrds In additin yu need: Invices fr majr machinery, equipment, furniture, etc. purchases Lgs r ther recrds listing vehicle mileage Inventry recrds, if yur business maintains an inventry f gds r materials If Yu Use Yur Hme Fr Business Square ftage f yur hme ffice area Ttal square ftage f yur hme Ttal rent paid, if hme is rented Mrtgage interest reprted n Frm 1098 Prperty tax payments frm assessr's bill, cancelled checks, r impund recrds Hmewner's insurance premium payments Invices fr repairs and maintenance n yur huse Utility bills IRA/Pensin Distributins Frm 1099-R fr payments frm IRA r retirement plans Accunt summary frm fr the year fr yur IRA accunts, r Depsit receipts and cntributin recrds
If yu received a distributin frm an IRA accunt - the mst-recently filed Frm 8606, if yu made cntributins in prir years t IRAs that weren't deductible n yur return Rental Prperty Incme Prfit and lss statements frm yur prperty manager, r Checkbk r cancelled checks fr expenses Frm 1099-Misc r ther recrds fr rental incme paid t yu Mrtgage interest reprted n Frm 1098 Prperty tax payments frm assessr's bill, cancelled checks, r impund recrds Recrd f suspended rental lsses frm prir years (usually shwn n last year's return) Unemplyment Incme Frm 1099-G frm yur state unemplyment agency, r Unemplyment check stubs and depsit recrds Scial Security Benefits Frm SSA-1099 Incme Frm Sales f Prperty If the prperty was sld in 2004: Sales prceeds - Bill f sale, escrw statement, clsing statement r ther recrds Cst f the prperty yu sld Invices, receipts, r cancelled checks Imprvements made t the prperty Invices r cnstructin cntracts and cancelled checks
If the prperty was sld at a prfit befre 2003 n the installment basis: Previus year s return Frm 6252, Installment Sales Amunt f principal cllected n the installment nte wed t yu and the date yu received each payment Amunt f interest cllected n the nte Name, address and scial security number f the buyer Miscellaneus Incme Jury duty pay recrds Frm(s) W-2G fr gambling and lttery winnings Receipts fr all gambling purchases Frm 1099-MISC fr prizes and awards yu received Frm 1099-MSA fr distributins frm medical savings accunts Schlarship recrds (if yu used the mney fr anything ther than tuitin, bks, and supplies) Directr s fees receipts if yu received mney fr serving n a crprate bard f directrs Adjustments IRA Cntributins Year-end accunt summary r bank statements
Student Lan Interest Frm 1098-E shwing interest paid, r Lan statements Medical Savings Accunt Cntributins Accunt statements r Cancelled checks Mving Expenses Invices frm mving cmpanies r Cancelled checks and Paycheck stub fr mving expense reimbursements Self-emplyed Health Insurance Insurance premium bills, r Cancelled checks Kegh & SEP Pensin Plans Year-end accunt summary, r Cancelled checks Alimny Paid Cancelled checks Educatr Expenses
Cancelled checks fr expenses paid fr classrm supplies, etc. Itemized Deductins Hme mrtgage interest: Frm 1098, r Yur mrtgage statement r bill fr January, 2005 Pints: Frm 1098 if yu purchased a hme in 2003 Yur 2002 tax return if yu refinanced in prir year Investment Interest Expense: Brkers' statements shwing margin interest paid Lan statements fr lans taken ut t purchase investments Charitable Dnatins Cash dnatins: Charity bills, receipts, r cancelled checks Recrds f the mileage incurred fr charitable purpses (Scuts, etc.) Dnatins f Prperty: Receipts frm charitable agency Estimated value f prperty given Appraisal fees fr expensive dnatins Other charitable dnatins:
Prir years' tax returns if yu have unused charitable cntributins (carryvers) frm earlier years Year-end paycheck stub if dnatins were paid thrugh yur wages Casualty & Theft Lsses Descriptin f prperty damaged r stlen Receipts r cancelled checks shwing cst f prperty Insurance plicy and insurance reprts shwing reimbursement Appraisal fees if applicable Jb Expenses Reimbursement check stubs r reprts frm yur emplyer Unin dues - paycheck stub fr autmatic withdrawals Gifts t clients, etc. - receipts shwing date, cst, descriptin Supplies - receipts r bills Prperty purchased fr use in yur wrk - invices, receipts Unifrm and special clthing csts - bills r paycheck stubs shwing deductins Seminar fees - receipts r invices Prfessinal publicatins and bks - receipts r invices Receipts fr small tls and supplies yu purchased Jb travel infrmatin: Invices, receipts, r ticket stubs fr transprtatin Mileage recrds per vehicle used Htel bills Restaurant tickets shwing name and address f establishment Parking fee receipts Jb search expenses: Lng-distance call bills Resume csts (printing, mailing, resume service, etc.) Transprtatin bills and mileage recrds
Emplyment agency fees Career cunseling csts Jb-related educatinal expenses: Tuitin, fee, and bk receipts fr educatin that maintains r imprves yur present skills Transprtatin receipts Ldging receipts if yu take classes away frm hme Other Miscellaneus Deductins Tax return preparatin fees - invices r cancelled checks Cst f tax return preparatin sftware and bks - receipts r cancelled checks Safe depsit bx rental fees frm bank invice r statement IRA custdial fees (if paid frm a nn-ira accunt) Payrll recrds fr ffice wrkers managing yur investments Investment advice csts: invices r bills Medical & Dental Expenses Medical bills r cancelled checks Frm SSA-1099 fr Medicare premiums paid frm yur scial security benefits Year-end pay stub if premiums were paid thrugh yur wages (nly if the deductins were after-tax) Mileage recrds fr trips t the dctr, clinics, etc. Taxes State & Lcal Incme Taxes Last year's state incme tax return
Frms W-2 Cancelled checks fr state estimates paid Real Estate Taxes Tax cllectr bills r cancelled checks Frm 1098 r clsing statement if yu bught, sld, r refinanced prperty in the current year Persnal Prperty Taxes Tax bills r cancelled checks Autmbile licensing bills, if fees are charged annually based n value Infrmatin n Husehld Emplyees Wages paid during 2004 Emplyee s scial security number Tax Payments Quarterly estimated tax payments Recrds shwing the date paid and amunt If yu applied a tax verpayment frm 2003 t 2004 yur 2003 incme tax return If yu filed fr an extensin fr yur 2003 tax return Cancelled checks fr payments yu made with the extensin
Direct Depsit Infrmatin If yu want yur refund depsited directly int yur bank accunt, yu need yur: Ruting number frm the lwer left side f ne f yur checks (usually the first nine digits): Bank accunt number frm the bttm f check r n bank statement: Freign Bank Accunt Infrmatin Name f financial institutin Lcatin f financial institutin Accunt number Maximum value f accunt