What Do I Need to Give My Accountant for Taxes?

To accurately file taxes, providing your accountant with complete and organized documentation is important. This practice helps ensure compliance with tax laws, supports all claims for deductions and credits, and can lead to a more favorable tax outcome. Gathering all necessary information before your appointment streamlines the tax preparation process, minimizing potential errors and delays.

Essential Personal and Foundational Details

Your accountant will begin by requesting fundamental personal and identifying information to accurately prepare your tax return. This includes the full names, Social Security Numbers (SSNs), and dates of birth for yourself, your spouse, and all dependents. Providing current addresses and contact information is also a standard requirement.

Supplying your prior year’s tax return, such as Form 1040, provides your accountant with valuable financial history. This helps identify carryovers and ensures consistent reporting.

Bank account details, including routing and account numbers, are necessary for direct deposit of refunds or direct debit of taxes owed. New clients may also need to provide identity verification documents, such as a photo ID.

Income Documentation

Various forms and records are essential for accurately reporting all sources of income to your accountant. If you are employed, Form W-2, Wage and Tax Statement, from each employer will report your wages, salaries, and tips. This form also details the taxes withheld from your pay throughout the year.

For interest earned from financial institutions, you will receive Form 1099-INT. Similarly, Form 1099-DIV reports dividends and distributions from stocks and mutual funds. These forms ensure all investment income is properly accounted for.

If you are an independent contractor or self-employed, Form 1099-NEC, Nonemployee Compensation, will report payments received for services. You should also maintain thorough records of any other self-employment income not reported on a 1099-NEC, along with all associated business expenses. For retirement income, Form 1099-R reports distributions from pensions, annuities, IRAs, and other retirement plans.

Social Security benefits are reported on Form SSA-1099, while unemployment compensation is detailed on Form 1099-G. If you receive income from rental properties, comprehensive records of both rental income and expenses are necessary. For income from partnerships, S corporations, or trusts, you will receive a Schedule K-1.

Other income sources also require documentation, such as Form W2-G for gambling winnings, issued if winnings exceed certain thresholds. Alimony received under divorce or separation agreements executed before 2019 is taxable income for the recipient and needs to be reported.

Deductions and Credits Documentation

Documentation for deductions and credits is important for reducing your taxable income or directly lowering your tax liability. For itemized deductions, you will need records of medical, dental, and vision expenses not reimbursed by insurance. Property tax statements and records of state and local income tax payments are needed for the State and Local Tax (SALT) deduction.

If you are a homeowner, Form 1098, Mortgage Interest Statement, reports the mortgage interest paid on your home. Records of cash and non-cash charitable contributions to qualified organizations are also necessary, including acknowledgment letters for donations above certain thresholds.

Adjustments to income also require specific forms. Form 1098-E, Student Loan Interest Statement, reports student loan interest paid. Records of traditional IRA contributions are needed to claim this deduction. For Health Savings Account (HSA) contributions and distributions, Form 1099-SA is the relevant document.

Various tax credits also require specific information.
For the Child Tax Credit or Credit for Other Dependents, details about qualifying children or dependents are required, including their Social Security Numbers and dates of birth.
Education credits rely on Form 1098-T, Tuition Statement, and records of other qualified education expenses.
The Child and Dependent Care Credit requires information about your care provider, including their name, address, and Taxpayer Identification Number (TIN) or Employer Identification Number (EIN), along with the amounts paid for care.
Records of qualifying home energy improvements are needed for residential energy credits.

Investment, Property, and Other Specific Situations

More specialized financial situations also necessitate specific documentation. For investment sales, such as stocks, bonds, mutual funds, or cryptocurrency, Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, reports the proceeds. It is important to provide accurate cost basis information for these investments if it is not reported on Form 1099-B, as this affects the calculation of capital gains or losses.

Real estate transactions, like the sale of a home or rental property, are reported on Form 1099-S, Proceeds From Real Estate Transactions. In addition to this form, you should provide details about the original purchase price, closing statements from both the purchase and sale, and records of any capital improvements made to the property, which can increase the cost basis and reduce taxable gain.

Records of any quarterly estimated tax payments made to federal and state authorities are important to ensure proper credit against your total tax liability. If you have foreign financial accounts, you may need to provide information for FinCEN Report 114 (FBAR) or Form 8938, depending on the aggregate value of these accounts.

For those with business income and expenses beyond what is reported on a 1099-NEC, detailed records are necessary for completing Schedule C, Profit or Loss From Business. This includes all income and itemized expenses, such as advertising, office supplies, and business travel.

Casualty and theft losses require documentation of losses incurred from federally declared disasters. This might include police reports, insurance claims, and appraisals to determine the extent of the loss. Health coverage statements like Form 1095-A (Marketplace Health Insurance Statement), 1095-B, or 1095-C may be relevant, though their importance for federal tax purposes has changed since the repeal of the Affordable Care Act’s individual mandate penalty.