Personal tax filing (including Schedule C self-employed), is underway from now to April 15th , extended to October 15th if you file proper paperwork.  Today is a great time to check off what you have received from other people, banks and institutions.  So, to help you maximize your tax savings this year and get proactive with your tax strategy, here’s our BayCPAPlus essential checklist to organize your records before going to your favorite CPA’s office. 

Business owners take note - if you’re organized as a partnership or LLC or S-corp, the deadline for filing the business returns is March 16th. Calendar-year C corporation tax returns are due by April 15.  Six-month extensions can be requested as in personal tax filing.

1. Income

• W-2 forms : employers must issue these by Jan. 31st, so you should’ve received them in physical mailbox  or your email box by mid-February. If not, please contact your HR or payroll department.

• 1099-MISC : if you are a contractor earning more than $600, you should also receive this by mid-February.  Please contact whom you have performed your services for.

• 1099-K :  If you’re paid via a third party such as Uber, Paypal, or Amazon.

• 1099-INT & 1099-DIV :  banks or financial institutions will issue these for your interest and dividends.

• 1099-B: if you have stock transactions during 2019, brokerage companies will send these to you.

• 1099-R or 1099-G : if you have distribution from retirement plans or receive payments from the government, you need to gather these too.

• K-1 : if you have invested in other businesses, or if you are a beneficiary of a trust/estate.

• If you have rental property : what are the total rents you receive on each property?

2. Expenses & Deductions

• If you have a business or farm, you will have your profit and loss statement as of 12/31/2019, which will show all your expenses and deductions for your business.  

• Traditional IRA or SEP retirement account contributions: this may also qualify you for saver’s credit. There’s still time to make 2019 IRA contributions, until April 15. 

• Educational expenses :  Form 1098-T and/or 1098-E are needed in order to claim education expenses or loan interest.

• Medical bills : Especially those with long-term severe illnesses.

• Mortgage interest : Form 1098.   If your mortgage payment includes an amount escrowed for property taxes, that will be included on the form too.

• Charitable donations :  Where are your receipts for charitable donations, for example, churches, Salvation Army where donate your clothing? 

• Classroom expenses : If you’re a school teacher or other eligible educator, do you have receipt for classroom supplies?

• If you have rental property : what are the expenses for advertising, cleaning, and maintaining of the place?  Property tax and mortgage interest too.

• If you have a home office for your self-employment : what is the square footage of that home office vs. the total adobe?

3. Credits

• American Opportunity and Lifetime Learning credits : Form 1098-T is required to qualify.

• Child Tax Credit and Adoption Credit : the standard Child Tax Credit is worth up to $2,000 per child/dependent. If you added to your family through adoption, you might be eligible for additional tax credits.  Have you information on how much you paid on child care, or adoption expenses?

• Retirement savings contributions credit (aka the Saver’s Credit) : brokerage statements will show how much you have contributed for 2018 and 2019.

• Renter’s credit :  please indicate if you rent your residence in the state of California.

• Energy credit : did you install solar panel, or buy a Tesla?

• Business credit : if you are a business owner, did you make investment and/or hire people?  This is a good start to talk to a CPA.

4. Tax Payments

• Property taxes : The statement the County Collector has sent to you around September each year.

• State and local taxes : We get the income withholding from your W-2.  The tax on a major purchase, however, can be added to the table amount, so keep those receipts.

• Estimated quarterly payments : for business owners and self-employed individuals, did you make quarterly estimated payments?

Other (Very) Relevant Tax Info

• 2017 & 2018 Tax Returns : This is a must if you are going to work with a new CPA.  We want to make sure we have the history so that we don’t miss usable deduction carried over, or simply we have good continuity to avoid issues down the road.

• Incorporation paperwork :  If you have incorporated during the year, LLC, Partnership, or Corporation, or elect to be treated as S-Corp, please have the organization papers, Secretary of State filing papers, and EIN for the business. 

To help you gather the data, here is a handy dandy Google sheet you can use - simply hit ‘File’ > ‘Make a Copy’, and you’ll have your very own master list to use to plan your 2019 Tax Filing. You’re welcome!