As the year winds down, the tax reporting forms begin to arrive and we want to remind you which ones we need you to accumulate and send to us with your tax information. First, there are a couple of new forms this year that most people will see, and which we need you to provide to us:
__ IRS Notice 1444-C for the 2021 stimulus check; and
__ IRS Letter 6419 for those folks that received the advance child credit.
Speaking of the advanced child credit, if you received it in advance, please understand that your refund this year may be greatly reduced!
We still need the annual information forms that are sent to you for tax purposes. As a reminder, here is a simple checklist:
__ W-2 for wages __ W-2G for gambling __ 1099-Int for interest
__ 1099-DIV for dividends __ 1099-B Brokerage __ SSA-1099 Social Security
__ 1099-NEC for income __ 1099-Misc for income __1099-K for income
__ 1099-R for retirement __ 1099-G for refunds & unemployment
__ 1099-Int for mortgages __ 1098-T for tuition __ 1099-SA for HSA’s
__ K-1 forms from investments in S corporations or partnerships
__ Form 5498 for IRA values __ IRA and Roth IRA contributions for 2021
__ Child care costs, and the name, address, amount, and ID # of the recipient
__ Charitable donations-total amounts and recipients
__ Property tax paid on your home, property, or cars
__ Estimated tax payments and dates
__ Any letters you received from the IRS or state tax authorities
__ Our engagement letter
If you have a small business or rental property we can provide you with a separate checklist for those activities if needed.
Again, IRS scrutiny of foreign accounts means that you need to be absolutely clear about any non-US accounts or income so that we report it correctly.
If you have bought and/or sold a home in 2021 we need the closing statements on both purchases and sales.
Finally, in some tentative year-end planning, we are reasonably certain that Federal income tax rates will increase in 2022, so tax deductions will be more valuable next year vs. this year, and if you have any control over year-end bonuses it would be wise to call us and see if they would be better to receive them before the end of 2021 or wait until 2022.
Every year we are reminded how much we value your business, and we want to once again say thank you. Please call us with any questions.