Each year we encounter this question as we are gathering information for tax returns. We normally ask for a complete copy of the 1099. The questions we get is “Why do you need all the pages of the 1099 statement? You have the totals that get reported on the 1st page.” Here’s an explanation.
Depending on the types of investments you hold in your account the detail can give us information that provide for additional income and/or deductions. There are state deductions for some types of investments.
In addition we can double check that your sales have basis or question why they might not. Sometimes there are adjustments to alternative minimum tax if you are in the income range that this affects you.
Lastly, if you have tax exempt interest for federal part of that can be taxable to state. I realize that some of those statements can be 20+ pages. However, it is important that we get the full statement to make sure both your federal and state returns are properly reporting income and deductions.
A good rule of thumb: if the online login says “tax information” or the envelope says “important tax document,” we are going to want everything included in pdf download or envelope.
The Wassman CPA Services website and blog is meant to offer general information to our readers. 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.