It’s time to get to work collecting tax forms! As you know your accountant will be needing all the information coming in the mail saying “tax documentation.”
There are the basic tax forms the W-2s for employees, 1099s for those that are or have been self employed during the year, 1099s or K-1s for investment income, and 1098s for mortgage interest. In addition to those tax forms don’t forget your personal property and real estate tax receipts these are used to help you get more deductions. Also if you or you have a dependent are in college make sure to get that 1098-T for the tuition paid. If you are out of school and paying student loans you will need that 1098-E; many times your lender makes these available online.
While I’m sure many of you are familiar with these tax forms there is some additional information your accountant will need this year with the new health insurance requirements. If you were able to take advantage of the marketplace then you will be receiving a form 1095-A. This will let your accountant know what months you had insurance and what you paid.
If you were not able to take advantage of the marketplace to purchase insurance then your accountant will still need all of this information. Be sure to let your accountant know what months you (and your family) had coverage and what you paid each month.
If your employer paid for your health insurance you need to know which months they paid for during the year, and if you chose to add your family to that plan you will need to make sure to include what months they were covered and how much you paid for that coverage. You will need to document what you paid for health insurance each month of the year for both you and your family (in some cases you may have had more than one health insurance plan during the year that will need to be documented). In addition to the insurance information, your accountant will need to know the household income so if you have dependents or others living with you, you will need to include their income.
Not only should you make sure to have all the applicable forms but make sure to let your accountant know if you have had any income or expenses during the year that are different from prior years to see if those items could affect your return or if you should be receiving additional forms that you have not received yet.
The Wassman CPA Services website and blog is a means of providing general information to the user. The information provided is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service. You should contact Wassman CPA Services for advice concerning specific matters prior to making any decisions.
