What to Bring to a Tax Preparer

by David Barnes

Overview

The most useful document you can bring to a tax preparer is a completed tax organizer. An organizer helps you make sense of all your financial information for the year, but, more importantly, it prompts you to think about information many taxpayers miss in calculating income and deductions each year. Your tax preparer can't enter information on your tax return you don't tell him about.
Organizing Income Items

Enter the amounts from all income sources into the organizer, and bring the backup documents for W-2s, 1099s for interest, dividend or non-employee income, pension distribution statements, year-end broker statements, property sale (or purchase) documents and K-1s from any partnership, LLC or S-corp you have ownership in. Bring any records for income from a self-employed business.

Income Items Often Missed

The organizer will help you remember to include documents reporting your tax-exempt income. Even though it's excluded from taxable income, it's usually reportable to the IRS, and your paid preparer needs the document to determine how to report it. Include your Social Security statement if you receive benefits. The statement will show if you have a Medicare health insurance deduction. Other income information your preparer needs includes unemployment payments, alimony, scholarship or grant money, a state tax refund from the prior year and gambling winnings (and offsetting losses).
Deductions

A tax organizer will help you remember deductions you might otherwise miss--or not even know about: medical expenses, including long-term care premiums and medical miles driven to see providers; investment losses; taxes paid to local, county or state governments; mortgage insurance; and some losses from fire, storm or flood damage and theft. If you are self-employed, you may be entitled to deduct a portion of your home's rent or mortgage payments, upkeep and repairs, utilities and improvements. If you are employed and pay out-of-pocket expenses your employer doesn't reimburse you for, such as union dues, tools, equipment or supplies, include these in the planner and bring receipts.