What Questions Do Tax Preparers Ask Clients?

Meeting with a tax preparer is a collaborative process to accurately report your financial year. Arriving prepared with your documents and information helps the preparer ensure accuracy, which can lead to a maximized refund or minimized tax liability. The questions a preparer asks are designed to guide them through your financial situation to assemble a complete and correct tax return. Being ready with answers allows your tax professional to focus on complex calculations and strategic decisions rather than basic data entry.

Foundational Questions About You and Your Household

The first questions establish your identity and household composition. You will be asked for your full legal name, date of birth, and Social Security Number (SSN), along with the same information for your spouse, if applicable. This data must match government records to prevent processing delays.

For any dependents you claim, the preparer will need their:

• Full name
• Date of birth
• Social Security Number
• Relationship to you
• Number of months they lived in your home during the tax year

Your preparer will also ask about your marital status as of December 31st of the tax year, as this determines your filing status. An incorrect SSN or a misspelled name can cause the IRS to flag your return, so providing accurate information is important for claiming dependents and securing a more favorable filing status.

Questions to Identify All Sources of Income

After establishing your household, the preparer’s focus shifts to your income, as the IRS requires all income to be reported unless excluded by law. You will be asked about salary or wages from an employer, which requires you to provide your Form W-2. The preparer will also ask if you worked for yourself or received payments for contract or freelance work to identify self-employment income. For this, you should have any Forms 1099-NEC for payments of $600 or more, or a Form 1099-K if you received over $5,000 through a third-party payment network.

Next, the preparer will inquire about investment income, such as interest or dividends, or if you sold stocks, bonds, or other property during the year. You will need Form 1099-INT for interest, Form 1099-DIV for dividends, and Form 1099-B for proceeds from broker transactions. Other questions will cover different income streams, such as unemployment benefits (Form 1099-G) or distributions from retirement accounts like an IRA or 401(k) (Form 1099-R). Be prepared to discuss rental or royalty income (Form 1099-MISC) or income from partnerships or S-corporations (Schedule K-1).

Questions to Maximize Your Deductions

Your tax preparer will explore deductions to reduce your taxable income, starting with whether you should take the standard deduction or itemize. The choice depends on whether your itemized deductions exceed the standard deduction, which for the 2024 tax year is $14,600 for single filers and $29,200 for those married filing jointly. If itemizing is a possibility, the preparer will ask about eligible expenses.

Homeowners will be asked about mortgage interest (Form 1098) and real property taxes paid. You will also be asked about state and local income or sales taxes paid to determine your state and local tax (SALT) deduction, which is capped at $10,000 per household per year. Questions about cash or non-cash donations to qualified charities will require you to have bank records or written acknowledgments. The preparer will also ask about out-of-pocket medical expenses, as you can only deduct the amount that exceeds 7.5% of your adjusted gross income (AGI).

You will also be asked about “above-the-line” deductions that can be taken without itemizing, such as contributions to a traditional IRA or payments for student loan interest. You can deduct up to $2,500 in student loan interest paid, as reported on Form 1098-E.

Questions to Uncover Eligible Tax Credits

After deductions, the focus shifts to tax credits, which reduce your tax liability dollar-for-dollar. A preparer’s questions are often tied to specific life events and expenditures.

Family and Dependent Credits

Questions like, “Did you have a child, adopt a child, or have a new dependent last year?” help determine eligibility for the Child Tax Credit. Another common question is, “Did you pay for childcare for a dependent under age 13 so you could work or look for work?” Answering yes may lead to the Child and Dependent Care Credit, which requires the care provider’s name, address, and Taxpayer Identification Number (TIN), plus the total amount you paid for care.

Education Credits

Your preparer will ask, “Did you, your spouse, or a dependent pay for tuition or fees for post-secondary education?” This question explores eligibility for the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC). You will need to provide Form 1098-T, Tuition Statement, from the educational institution to substantiate these expenses.

Clean Vehicle Credits

Expect questions about vehicle purchases, such as, “Did you purchase a new or used clean vehicle?” For a new clean vehicle, the credit is up to $7,500 but is subject to restrictions on the vehicle’s price, its battery components, and your income. For a used clean vehicle, the credit is 30% of the sale price up to a maximum of $4,000, and the vehicle must cost $25,000 or less. For either credit, you may be able to transfer it to a registered dealer at the point of sale to directly lower the purchase price.

Home Energy Credits

Your preparer will ask about home improvements, such as, “Did you make any energy-efficient home improvements?” This may qualify you for the Energy Efficient Home Improvement Credit. This credit is 30% of your costs for items like new windows and doors, with a general annual limit of $1,200. A separate annual limit of $2,000 applies to electric heat pumps and certain other equipment. You will also be asked, “Did you install new clean energy property, such as solar panels or geothermal heat pumps?” This could make you eligible for the Residential Clean Energy Credit, which is 30% of the total cost with no maximum credit amount.

Questions Regarding Tax Payments and Past Filings

The final questions involve taxes you have already paid and your recent filing history. Your preparer will ask if you made any federal or state estimated tax payments, so you should have records of the payment dates and amounts. You will also be asked to provide a copy of last year’s tax return, especially if you are a new client. The prior-year return is used to check for carryover items, like capital losses or charitable contributions, and helps maintain consistency in reporting.

Be prepared to discuss any letters or notices you have received from the IRS or a state tax agency. These documents may contain information about adjustments or other issues that need to be addressed with your preparer. To facilitate a refund or payment, you will be asked how you want to receive your refund or pay any amount due. For a direct deposit, you will need to provide your bank account and routing numbers, as this is the fastest way to receive your money.