Income Tax Preparation Another tax season is here! I suggest making an appointment as soon as possible after you have received all necessary paperwork. In addition to items listed on the preparation sheets, please also keep track of the following:
* All Forms 1099 for commissions, interest, dividends, etc.
* All material you received from the Internal Revenue Service or Minnesota Dept. of Revenue
* Any notices from corporations, investment trusts, etc., which advise of special income tax treatment of dividends
* If you own the house you live in, please bring a copy of your real estate taxes payable
* If you rent the house or apartment you live in, please bring copies of the CRP Form signed by your landlord.
* Form(s) 1095 you received from your insurance company or employer.
Long-term capital gains and qualified dividends may be non-taxed this year, depending on your taxable income. Minnesota is again offering a tax deduction for one half of the amount of charitable contributions over $500 for non-itemizers and credits for premiums paid for long-term care insurance. There may be a credit on social security taxed by the federal. Minnesota did not adopt the new federal tax rules and so you can itemize on Minnesota and take the standard deduction on the federal. Fill out the itemized deductions worksheet to see if that is the case.
If you participated in a retirement plan (including IRA), paid student loan interest, adoption expenses, costs for college tuition, or have a child under age 17, there may be additional credits to be claimed on your return.
All dependents need a social security number to claim the dependency credit.
Remember that for any payment of $600.00 or more by a business for labor, services, rent, etc. that you paid to an individual or company, you must file a Form 1099 by the end of January. On any interest payments of $10.00 or more for business interest, you must file a Form 1099 on an individual or company. All payments to attorneys must be shown on a Form 1099 for business expenses.
Please have the following form(s) filled out before your appointment. If you have any questions, jot them on the back of the form or call me at 320-967-4439 or send me an e-mail at firstname.lastname@example.org.
If you need to do some tax planning before year-end, you can schedule an appointment by giving me a call at 320-967-4439 as soon as possible.