It's time to prepare your 2010 tax return. Your accountant asks for tax records before she prepares last year's tax return. What should you bring along to the meeting? Within reason, the correct answer may be "whatever you can carry."
Bring any W-2, 1099, K-1, bank and broker statements, quarterly statements from an asset manager, and any foreign earnings received. Your accountant needs to evaluate your earnings, dividends, interest earned, payments received and-if you earned any-gambling winnings. If you bought or sold a collectible asset, like gold coins or baseball cards, information about these transactions should be provided to your accountant.
If your accountant doesn't supply a tax return checklist, here are items to bring along to your meeting. Not every item on the list will apply to everyone. As a caveat, bring anything to your accountant that requires discussion.
Financial
Make sure your accountant has the information she needs to deduct costs of
- Accounting and legal fees (especially if you've changed advisors since last tax year)
- Refinancing costs of a mortgage, such as points and fees paid
- Safe deposit box used for your business or stock and bond certificates
- Investment-related expenses (such as fees paid, costs of special accounts, and margin)
- Penalties paid for withdrawal of time deposits or savings plans
- Information about early retirement plan withdrawals
- Alimony payments
- Daily planner to show appointments, meetings, and events
Education
- Interest paid on student loans
- Lifetime Learning and Hope credits (these federal financial aid credits may offset tuition payments for some people)
- Ask your accountant about costs for your students' internships, travel, and required certifications for any study program.
Charity
- Mileage used in the performance of charity work (You'll receive less to drive your car or personal vehicle for charitable work than in the performance of your job: 0.14 per mile in 2010.)
- Meals, hotels, gasoline, rental car, public transportation or any costs you pay out-of-pocket when performing charity work.
- Donations of clothing or other goods (Bring receipts for the accepted value by the recipient of your donations.)
Work and Employment-Related
- Uniforms required by your job
- Dues paid to associations or unions
- Laundry or cleaning charges during business trips
- Newspapers and industry-related materials needed for your work
- Costs of your home office (talk to your accountant: see IRS Tax Tip 2010-53)
- Job search costs and expenses
- Fees paid to recruiters or search professionals, if applicable
- Mobile phone charges required for business
- Software and office products unreimbursed by your employer
- Unreimbursed business miles or any unreimbursed portion of business miles unpaid by your employer, on your personal vehicle(s) (bring a mileage log for this deduction)
- Out-of-pocket charges copies, print, documents, and miscellaneous unreimbursed business expenses
- Continuing education and credential costs required for business
- Job-related moving costs
Your Home
- Property taxes assessed on personal vehicles, boats, marine equipment, recreational vehicles
- Property and casualty losses, including theft
- Commissions paid to a real estate agent or property management fees related to rental property
- Home office (see above)
- Tax credits related to installation of solar panels and clean energy
- Home care services for an elderly or disabled family member
Health Care and Medical
- Eyeglasses, lenses, contact lenses, and hearing aids
- Home equipment needed for disability (yourself and family members)
- Costs of care for disabled family member
- Private duty nurse fees
- Home health care costs for elderly or disabled family members
- Doctor-prescribed weight loss treatments and programs
- Smoking cessation and drug rehabilitation and abuse treatments and programs
- Orthopedic shoes and orthotics, walkers, crutches and scooters
- Medical mileage costs (0.165 per mile in 2010, less than unreimbursed business mileage
- Medical rehab and skilled nursing facilities costs
- Health insurance premiums (especially important for self-employed people)
Miscellaneous
Ask your account about these or any other items now:
- Hybrid car (clean fuel credit
- Gambling loss
- Client errors
- Payments to employer for jury duty pay (if not reimbursed