| > | | | | supports your file format. |
| Being prepared for your tax appointment can really | | | | Brush up on relevant tax law/tax changes. While |
| pay off in terms of maximizing deductions and | | | | this it is not always possible for the non-tax |
| minimizing tax as well as lowering fees charged by | | | | professional to be fully versed on tax law, the more |
| your preparer! Additionally, you should be able to walk | | | | informed you are, the better you will be able to assist |
| away from your tax appointment with peace of mind | | | | in the return preparation process, provide important |
| that your returns are complete and accurate and | | | | information, and keep unnecessary questions to a |
| maybe even with some tax savings advice that you | | | | minimum. Visit the IRS website ( and the website for |
| can really use. | | | | your state department of taxation/revenue — |
| Finding a Preparer | | | | you will most likely be surprised how taxpayer friendly |
| First of all, finding a tax professional to work with is a | | | | these sites can be. |
| very important decision. A tax professional is not only | | | | Compile your questions into an organized list. Try to |
| a tax preparer, but someone who can provide you | | | | avoid asking questions haphazardly/at random during |
| with advice on tax issues and assist you with tax | | | | your tax appointment or making multiple phone calls to |
| planning. You want to find someone who is not only | | | | your preparer in the same manner. This is not an |
| professional and competent, but who is also a good fit | | | | efficient use of your time or your preparer’s. |
| for you and your specific needs. | | | | Be on time for your appointment. While we are all |
| Selecting a preparer solely based on price is not | | | | busy, there is probably no one as pressed for time as |
| necessarily in your best interest. Preparers who are | | | | a tax preparer during tax season. If you are late, this |
| preparing many returns at lower prices may be more | | | | could take away from the time the preparer can |
| concerned with the quantity of returns prepared than | | | | spend with you. It is important to keep in mind that your |
| the quality of the returns prepared. Returns that are | | | | preparer may have appointments with other clients |
| rushed through may have errors or omissions which | | | | before and after your appointment. Accordingly, keep |
| you are ultimately responsible for. A thorough, accurate | | | | in mind that it is possible for your appointment or the |
| return where deductions have been maximized | | | | one before yours to run a few minutes over the |
| legitimately should be your primary tax preparation | | | | scheduled/allotted time, so be patient. |
| goal. | | | | Avoid distractions during your tax appointment. Chit |
| If possible, it is best to assess your situation and look | | | | chatting with your preparer, cell phones and pagers, |
| for a preparer early. This will allow you more time to | | | | and bringing children with you to your tax appointment |
| find a preparer that is a good fit for you and to | | | | can create unnecessary distractions for your preparer |
| possibly even take advantage of a tax planning | | | | which could result in unintentional errors on your tax |
| consultation that could save you more money in taxes. | | | | returns. Your preparer needs to be able to fully |
| Keep in mind that if you wait to call around until tax | | | | concentrate on the task at hand. |
| season (mid-January through mid-April), it may be | | | | Do not delay getting information to your preparer. If |
| challenging to find someone who will be willing or able | | | | after your tax appointment you need to get back with |
| to speak with you over the phone in much detail about | | | | your preparer with additional information, do so |
| your specific situation. | | | | immediately so your return is still fresh in your |
| If you find that it is tax season already and you have | | | | preparer’s mind and to avoid the last minute |
| not decided on the tax professional that you will be | | | | April 15th rush. Remember, your preparer has many |
| using, there are a few ways that you can find out | | | | other clients to deal with. Thus, he/she cannot be |
| more about some of them without taking up much of | | | | expected to call to remind you that he/she is still |
| their time on the phone. If you have access to the | | | | waiting on information from you. You should take |
| Internet, you can check out websites of local tax | | | | responsibility for getting additional information needed |
| professionals to find out more about their businesses, | | | | to your preparer and for following up in regards to |
| their credentials, and the services that they offer. You | | | | your returns in process. |
| can also check with family and friends to get some | | | | As for some specific items that you will not want to |
| referrals. | | | | forget to bring to your appointment: |
| One last point about finding a tax preparer that you | | | | Make sure you have all documents related to |
| really need to know — they are not all the | | | | income. Examples include wage statements (Forms |
| same! Did you know that only a few states require | | | | W-2s); pension and retirement income (Forms 1099-R); |
| any kind of licensing or registration of preparers? Thus, | | | | interest and dividend income (bank statements and |
| in most states, just about anyone can open up a tax | | | | reports, Forms 1099-INT, Forms 1099-DIV); |
| preparation business. Did you know that they all do not | | | | self-employed business income; lottery or gambling |
| have full-time, year-round hours? This is important in | | | | winnings; Social Security; unemployment compensation; |
| case you have questions or problems after your | | | | rental income; commissions; and tips. |
| taxes are prepared. You should do your homework | | | | Provide documentation of expenses and losses. |
| when checking out potential preparers - find out about | | | | Examples include self-employed business expenses; |
| their licensing/credentials, education, experience, and | | | | lottery or gambling losses; expenses from rentals; |
| availability throughout the year. Two professionals that | | | | medical and dental expenses; unreimbursed |
| you should consider in your search are Certified Public | | | | employment-related expenses; job-related educational |
| Accountants (CPAs) and Enrolled Agents (EAs). They | | | | expenses; job search expenses; moving expenses; |
| each must meet strict criteria to obtain their | | | | and child care expenses (to include care |
| designations as well as adhere to a strict code of | | | | provider’s full name, address, and tax ID or |
| professional ethics and meet annual continuing | | | | Social Security number). |
| professional education requirements. | | | | Provide documentation related to your home. |
| Getting Prepared and Organized | | | | Typically, home ownership provides many great tax |
| Once you find a preparer that you want to work with, | | | | benefits. If you buy or sell a home during the year, |
| you will want to be well prepared and organized to | | | | make sure you bring complete documentation |
| ensure that you get the most from his/her time and | | | | regarding the sale or purchase of a home. Additionally, |
| service. Being organized and prepared can reduce not | | | | bring information/statements related to real estate and |
| only your tax liability, but your tax preparation fees as | | | | personal property taxes and mortgage and/or home |
| well. | | | | equity loan interest paid. |
| Before proceeding with the actual pre-meeting | | | | Documentation related to miscellaneous income or |
| preparation steps and specific items that you should | | | | debt. Other items to bring documentation on, if |
| bring to your tax appointment, it should be noted that all | | | | applicable, include, but are not limited to: sales of stocks |
| preparers do not actually meet with their clients face | | | | and bonds; state and local tax refunds; alimony paid or |
| to face to prepare their returns. Some just have clients | | | | received; estimated or foreign taxes paid; and cash |
| drop off or mail their information. Once the returns | | | | and non-cash charitable donations. |
| have been prepared, they mail the returns to their | | | | Information on new dependents to be claimed on |
| clients or have the clients pick them up. Would you feel | | | | your tax return or changes to dependents. If you have |
| comfortable not meeting with your family physician for | | | | had a baby, gotten married, have begun supporting a |
| your child’s annual physical exam? There is so | | | | relative, etc., your preparer will need name, Social |
| much more you can get out of the tax preparation | | | | Security number, and date of birth information (also |
| process by meeting and working with the preparer! | | | | discussed below). A name change is another example |
| The following are steps that you should take before | | | | of such information that your preparer will need. |
| meeting with your tax preparer: | | | | If you are not sure if something has tax implications, |
| Schedule your appointment early. The earlier in the | | | | bring the related document or information and ask! |
| tax season you schedule your appointment, the less | | | | Furthermore, if you are a new client to your preparer, |
| likely it will be that your preparer is dealing with many | | | | you will need the following items/information as well: |
| stressed-out, last-minute clients. Additionally, you will be | | | | Your prior year tax returns to include relevant |
| more likely to get an appointment for a day and time | | | | supporting items such as Forms W-2s. Not only your |
| that fits well into your schedule. | | | | Federal return, but also your state and any local |
| Review last year's return. This will remind you of | | | | returns. There are items on your prior year returns that |
| any tax issues or situations that you will need to | | | | may carry forward to your current tax returns. |
| discuss with your preparer as well as remind you of | | | | Additionally, the returns allow the preparer to better |
| items that you will need for your appointment. | | | | understand your tax situation. |
| Organize all receipts and paperwork. The | | | | Full names, Social Security numbers, and dates of |
| shoebox or similar method is not the best for | | | | birth for all persons that will be included on your tax |
| your tax appointment, unless you want to pay your | | | | returns. It is very important that names and Social |
| preparer to sort, organize, and add up receipts. Have | | | | Security numbers given to your preparer exactly |
| your receipts organized and totaled by category. Have | | | | match up with what is on the individual’s Social |
| other relevant documents organized by category. | | | | Security card. Bringing actual Social Security cards to |
| Gather all tax-related mail that you receive to | | | | your appointment helps to ensure this. Additionally, |
| include pre-printed tax forms, tax booklets, and tax | | | | dates of birth must be accurate. When such |
| reminder notices. These items often will include | | | | information is not accurate, this can cause your return |
| information that is helpful to your preparer in regards to | | | | to be rejected for processing or otherwise cause a |
| your situation. Many tax clients assume that because | | | | delay in processing of your returns. |
| their preparer uses tax software that there is no need | | | | In addition to the above listed items, your preparer may |
| to bring these items to their tax appointment. | | | | have some additional required items, such as a valid |
| Prepare information on unusual situations. If you | | | | state issued identification card or driver’s license |
| have any unique tax situations or liabilities, prepare to | | | | for each taxpayer. |
| discuss them. This includes any past problems you | | | | Remember, even though the preparer bears some |
| may have had. | | | | responsibility, you are ultimately responsible for your |
| Bring relevant computer data files. If you track your | | | | tax return. So finding a great preparer and being |
| finances with a program such as QuickBooks or Excel, | | | | prepared and organized will help ensure that you |
| bring the data file(s) with you. Having the data file(s) | | | | recognize the greatest tax savings possible and that |
| handy might assist in answering any last minute | | | | your tax appointment goes smoothly! |
| questions. Call first to make sure the preparer's office | | | | |