| The following list includes the 10 items you are likely to | | | | rolled them into another plan. The same information |
| need when preparing your tax return. Although you | | | | must be submitted to the IRS. |
| may be required to provide additional information, this | | | | 8. Interest / Dividend Income (US or foreign) (form |
| list brings you the most common items we have | | | | 1099-INT, 1099-DIV) - |
| identified based on hundreds of our clients' tax returns. | | | | Those forms summarizes the interest and dividend |
| 1. IRS form W2 -summarizes your annual taxable | | | | payments you have received during the year from |
| wages, federal income tax withheld, social security | | | | your bank, brokerage firm or any other U.S. source. |
| withheld, Medicare withheld and state income tax | | | | The information provided to you is also submitted to |
| withheld. Additionally your contribution to an employer | | | | the IRS. |
| based retirement plan is also listed on the W2. | | | | 9. Stock Sales and cost (form 1099-B) - |
| 2. Rental Income and Expenses, Cost of Property, | | | | Summarizes the proceeds you have received from |
| Date property placed in service - | | | | selling stocks during the year. The form lists the symbol |
| Rental income include actual payments received by | | | | of the stock sold, date of sale and number of units |
| the tenants during the tax year. As a cash basis tax | | | | sold, proceeds received and commission paid. To |
| payer, do not include any payments still owed by the | | | | calculate capital gains or losses you must assign cost |
| tenant for the year, only payments received. Rental | | | | to each of the stocks you have sold, and then need to |
| expenses include: management fees, mortgage | | | | group the stocks into 2 categories: long term (stocks |
| interest, insurance, condo fee, cleaning, utilities, | | | | held for a year or more) and short term (stocks held |
| advertising, travel to and from the property, real estate | | | | for less than a year). |
| taxes, legal and other professional fees and brokerage | | | | 10. Business Income and Expenses (or employee |
| commissions. Cost of property and date placed in | | | | un-reimbursed expenses) - |
| service are necessary to calculate depreciation. | | | | - Home office - if you use portion of your residency as |
| 3. Family members: Names, DOB, Social Security | | | | home office |
| Numbers, Full Address - | | | | - Job search - resume writing, interview travels, fax |
| To calculate personal exemptions, child tax credit, | | | | and phone calls, retainer paid to a job search firm |
| education credit, and child care expanse credit. | | | | - Professional expenses - courses and licenses |
| Additionally EIC ("Earned Income Tax Credit") is also | | | | - Investment expenses - margin interest |
| calculated using this information. | | | | - Travel - business travel or work related travel |
| 4. Mortgage Interest Payments in 2005 (or form 1098) | | | | - Seminars - to keep you up to speed |
| -form 1098 summarizes your annual mortgage interest | | | | - Professional literature - books to maintain your |
| payments and any real estate taxes paid through your | | | | experience and knowledge |
| mortgage escrow account. | | | | - Tax preparation expenses - payments to tax |
| 5. Property tax payments in 2005 (or form 1098) - | | | | advisor or tax software |
| If you pay your real estate taxes independently of the | | | | - Legal expenses - if it was paid to generate income |
| mortgage escrow account you will need copy of your | | | | Tax USA Inc. ------------ Tax USA, Inc. is a complete |
| property tax year for the year or copies of cancelled | | | | tax, accounting and financial management firm |
| check with which you paid your property tax. | | | | specializes in small businesses, corporations and high |
| 6. Child care expenses paid in 2005 (for each child and | | | | income individuals. Tax USA Inc.'s mission is to exceed |
| per child care provider) - | | | | clients' expectation by providing superb tax, accounting |
| The information necessary to calculate child care | | | | & financial Management services. We offer our clients |
| expenses credit includes names and social security | | | | tax, accounting and bookkeeping services, CFO |
| numbers of the children, names, addresses and tax ID | | | | Outsourcing, Budget Review and Business Plans, Cash |
| numbers of the day care providers. | | | | Flow Management, Payroll Services and Entities' |
| 7. Amount of money taken out from 401K (or form | | | | Incorporation. |
| 1099-R) - | | | | Our Clients We focus on small and mid size |
| The IRS requires that your 401K company reports to | | | | businesses, non-profit organization and high income |
| you on IRS Form 1099-R any distributions that you | | | | individuals. Client list comprised of corporations, |
| took from your retirement plan last year even if you | | | | non-profit organizations and high-tech employees. |