Tax Planning Services

Tax Planning Services for Tax Preparation

Tax planningBasic planning strategy for tax preparation will consider income changes to changes in family size, from growth in capital gains to the potential impact of alternative minimum tax. Proper planning will help with the annual hunt for additional tax deductions and the proverbial “shoebox” of unorganized receipts. How well you prepare can directly impact how well you can engage in smart year-end tax planning.

Planning for tax prep doesn’t need to be complicated. A few simple steps in the organization and a little knowledge go a long way to a brighter future.

Plan Ahead

Good planning services for tax preparation can start with a filing system to save receipts. Having receipts on file will help you make accurate, informed choices at tax time. When filing time arrives, you may need a wide variety of information to achieve the maximum refund possible. Listed below is a guideline to help in your basic financial planning services for tax preparation.

Tax Planning Basics

Information about your income:

      • Income from jobs: You will need the W-2 forms for you and your spouse.
      • Investment income—various forms 1099 (-INT, -DIV, -B, etc.), K-1s, stock option information.
      • Income from state and local income tax refunds and unemployment: forms 1099-G.
      • Taxable alimony received.
      • Business or farming income—profit/loss statement, capital equipment information.
      • If you use your home for business—home size, office size, home expenses, office expenses.
      • IRA/pension distributions—forms 1099-R, 8606.
      • Rental property income/expense—profit/Loss statement, rental property suspended loss information.
      • Social Security benefits—Forms SSA-1099.
      • Income from sales of property—original cost and cost of improvements, escrow closing statement, canceled debt information (Form 1099-C).
      • Prior year installment sale information—forms 6252, principal and Interest collected during the year, SSN, and address of payer.
      • Other miscellaneous income—jury duty, gambling winnings, Medical Savings Account (MSA), scholarships, etc.

More Tax-Planning

      • Adjustments to your income:
      • Adoption costs—SSN of child, legal, medical, and transportation costs.
      • Alimony paid that is tax-deductible.
      • Business or farming income—profit/loss statement, capital equipment information.
      • Casualty and theft losses—the amount of damage, insurance reimbursements.
      • Charitable donations—cash amounts and value of the donated property, miles are driven, and out-of-pocket expenses.
      • Child care costs—provider’s name, address, tax id, and the amount paid.
      • Direct deposit information—routing and account numbers.
      • Education costs—forms 1098-T, education expenses.
      • Educator expenses.
      • Energy credits.
      • Estimated tax payment made during the year, prior year refund applied to the current year, and any amount paid with an extension to file.
      • Foreign bank account information—location, name of bank, account number, the peak value of the account during the year.
      • Home mortgage interest and points you paid—Forms 1098.
      • If you use your home for business—home size, office size, home expenses, office expenses.
      • Income from sales of property—original cost and cost of improvements, escrow closing statement, canceled debt information (Form 1099-C).

Don’t Stop Now

      • Income from state and local income tax refunds and unemployment: forms 1099-G.
      • Investment income—various forms 1099 (-INT, -DIV, -B, etc.), K-1s, stock option information.
      • Investment interest expense.
      • IRA contributions.
      • IRA/pension distributions—form 109.

      Itemized tax deductions and credits:

      • Keogh, SEP, SIMPLE, and other self-employed pension plans.
      • Medical and dental expenses.
      • Medical Savings Account (MSA) contributions.
      • Moving expenses (for tax years before 2018 only for federal returns, but your state might still allow it).

Other information:

      • More miscellaneous income—jury duty, gambling winnings, Medical Savings Account (MSA), scholarships, etc.
      • Other miscellaneous tax deductions—union dues, unreimbursed employee expenses. Also, uniforms, supplies, seminars, continuing education, publications, travel, etc.. Remember tax years before 2018 only for federal returns, but your state might still allow it.
      • Personal property taxes—vehicle license fee based on the value.
      • Prior year installment sale information—forms 6252, principal and Interest collected during the year, SSN, and address of payer.
      • Properly documenting the taxes, you’ve already paid can keep you from overpaying.
      • Real estate taxes paid.
      • Rental property income/expense—profit/Loss statement, rental property suspended loss information.
      • Self-employed health insurance payments.
      • Social Security benefits—form SSA-1099.
      • State and local income taxes paid.
      • Student loan interest.
      • Taxable alimony received.
We offer a full service of Tax Planning for both individuals and businesses.

Call us at (317) 929-1257

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