CARL WATTS & ASSOCIATES

December 10, 2012

www.carlwatts.com
office@carlwatts.com
Washington DC
 tel/fax 202 350-9002
TOP
Prepare for the Preparer and
Your 2012 Tax Return
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Expense records:

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Interest (mortgage interest, home equity loan interest, home improvement loan interest, student loan, etc.);

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Medical expenses (eye care, dental care, doctors, prescriptions, insurance premiums, etc.);

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Contributions to IRA, Keogh, SEP, etc. and penalties for early withdrawals from saving accounts;

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Taxes paid (state income taxes, real estate and personal property taxes, etc.);

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Purchase or sale of real residence;

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Expenses from rental property;

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Educational expenses (1098-T);

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Educator expenses;

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Child and dependent care expenses;

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Household employees expenses (wages, unemployment tax, federal income tax, etc.);

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Alimony paid (not child support);

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Charitable contributions (cash and non-cash);

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Business expenses unreimbursed by your employer (vehicle expenses; travel expenses, office supplies, equipment, meals & entertainment, etc.);

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Moving expenses;

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Expenses for energy efficiency improvements to your residence;

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Losses from theft or casualties;

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Other miscellaneous expenses (job search expenses, gambling losses, tax preparation fees, etc.);

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Other records:

  • Copies of previous year tax returns;
  • Documents for unique tax situations.



Additional tips:

If you are uncertain about the usefulness of some of your documents, make a list or bring them with you to consult with your tax preparer.

If you are missing forms (W-2’s or 1099’s for instance), contact your employer, bank or broker to ask for a copy, or you can get copies of your tax documents from the IRS.

Make a list of all the questions you want to ask your tax-preparer.

Remember, your tax preparer is not responsible for the information you supply, so please double check to make sure it is accurate.

If you don’t have all your information on time, you can always apply for an extension, but keep in mind you still need to pay your due taxes by tax day, which in 2013 is on April 15.

Make sure to keep copies of your tax returns (as well as all related documents) for at least three years starting on tax return due date.

If filling out a tax organizer seems like a lot of work on your part, try to see it as a good exercise on how to organize your tax documents in the future, it will certainly look much easier the following year.

One important suggestion for this year, keep an eye out for late year legislative changes that can impact your future taxes.

And, of course, always remember we are always here, ready to be of service to you.


It doesn’t have to be very complicated, it doesn’t need to hurt or worry you, and it can even be worth doing … yes, it’s your tax return that we’re talking about.

The 2012 tax return is no different from any other year, except if you have some specific or delicate matters to deal with.

In any case, all you need to do is call your tax professional and they would deal with it all.

What you should know is that any tax professional is going to ask you for all kinds of information, documentation, data and statements, cards and records.

First of all, do you need to file an income tax return?

The IRS says that you must file a federal income tax return if your income is above a certain level, which varies depending on your filing status, age and the type of income you receive.

Even if you don’t have to file, there still are some very good reasons you may want to:

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Get money back if you had federal income tax withheld from your pay or you made estimated tax payments; or

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Get all the credits you are entitled to.

What kind of documents do you need for your tax return?

To have everything organized, most tax prepares will provide you with an income tax organizer to help you supply all needed information.

Whether you are an old-fashioned shoebox user or a well-organized person, here is a checklist of the most commonly needed papers.

Identity records:

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Social Security cards for yourself, spouse and dependents;

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Driver’s license or other identification cards.


Income records:

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All W-2 forms;

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Forms 1099-R (pension, retirement, annuity);

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1099-SSA (Social Security benefits);

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1099-MISC (rent, royalties, independent contractors income);

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K-1 forms (profit from partner/shareholder distribution);

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1099-G (state income tax refunds, lottery winnings, unemployment compensation);

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Forms 1099-INT (interest received);

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1099-DIV (dividends received);

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1099-S (sale of real property);

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1099-B (sale of securities);

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Alimony received (not child support);

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Other income documents (lease agreements, gambling income, prizes and awards, jury duty, etc.).