Individual Client
Business Client
Individual Client
New for 2020:
Taxpayers may be able to claim the recovery rebate credit if they met the eligibility requirements in 2020 and one of the following applies to them:
- They didn’t receive an Economic Impact Payment in 2020.
- They are single and their payment was less than $1,200.
- They are married, filed jointly for 2018 or 2019 and their payment was less than $2,400.
- They didn’t receive $500 for each qualifying child.
People who received a federal tax refund in 2020 may have been paid interest. The IRS sent interest payments to individual taxpayers who timely filed their 2019 federal income tax returns and received refunds. Most interest payments were received separately from tax refunds. Interest payments are taxable and must be reported on 2020 federal income tax returns. In January 2021, the IRS will send a Form 1099-INT, Interest Income, to anyone who received interest of at least $10.
New this year, taxpayers who don’t itemize deductions can take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For more information, people should review Publication 526, Charitable Contributions.
Personal information:
The IRS needs to know exactly who’s filing and who is covered in your tax return. To do this, you will need Social Security numbers and dates of birth for you, your spouse, and your dependents, along with the following information, based on your circumstances.
Information about your income:
- Income from jobs: forms W-2 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/or unemployment: forms 1099-G
- Taxable alimony received (Applicable to divorces finalized before January 1, 2019)
- 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 – Please request a template from us to fill out the information.
- Social Security benefits—forms SSA-1099
- Income from sales of property—original cost and cost of improvements, escrow closing statement, cancelled debt information (form 1099-C) – Please request a template from us to fill out the information.
- 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.
Adjustments to your income:
The following can help reduce the amount of your income that is taxed, which can increase your tax refund or lower the amount you owe.
- IRA contributions: we can help you set up an account and fund it
- Energy credits
- Student loan interest
- Medical Savings Account (MSA) contributions
- Moving expenses (for tax years prior to 2018 only for federal returns but your state might still allow it)
- Self-employed health insurance payments
- Keogh, SEP, SIMPLE and other self-employed pension plans
- Alimony paid that is tax deductible (Applicable to divorces finalized before January 1, 2019)
- Educator expenses
- Education expenses
Itemized tax deductions and credits:
The government offers a number of deductions and credits to help lower the tax burden on individuals, which means more money in your pocket. You’ll need the following documentation to make sure you get all the deductions and credits you deserve.
- Child care costs—provider’s name, address, tax id, and amount paid
- Education costs—forms 1098-T, education expenses
- Adoption costs—SSN of child, legal, medical, and transportation costs
- Home mortgage interest and points you paid—Forms 1098
- Investment interest expense
- Charitable donations—cash amounts and value of donated property, miles driven, and out-of-pocket expenses
- Casualty and theft losses—amount of damage, insurance reimbursements
- Other miscellaneous tax deductions—union dues, unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.) (for tax years prior to 2018 only for federal returns but your state might still allow it)
- Medical and dental expenses
Taxes you’ve paid:
Properly documenting the taxes you’ve already paid can keep you from overpaying.
- State and local income taxes paid
- Real estate taxes paid
- Personal property taxes—vehicle license fee based on value
Other information:
- Estimated tax payment made during the year, prior year refund applied to current year, and any amount paid with an extension to file.
- Direct deposit information—routing and account numbers
- Foreign bank account information—location, name of bank, account number, peak value of account during the year- Please request a template from us to fill out the information.
Business Client
New for 2020:
If you have received any 2020 COVID-19 related grants, economic injury disaster loans (EIDLs), or paycheck protection program (PPP) loans, please contact for further guidance.
Income
Be sure to include all income sources when creating your small business checklist. This could include income from your day-to-day operations as well as any investment or ancillary income.
- Gross receipts from sales or services
- Sales records for accrual-based taxpayers (accounts receivable)
- Returns and allowances
- Business checking/savings account interest (1099-INT or statement)
- Other income, including rental income, federal and state gasoline or fuel tax credit or refund
Cost of Goods Sold
Some categories may not apply each tax season, so you should only include what applies for 2020 on your small business tax checklist. If you produce, purchase, or sell merchandise in your trade or business, you’ll need to take your inventory into account at the beginning and end of the year.
- Beginning inventory total dollar amount
- Inventory purchases
- Ending inventory total dollar amount
- Items removed for personal purposes
- Materials and supplies
Expenses
A wide range of costs can fall under applicable business expenses. Don’t miss recording any of these on your small business tax preparation checklist. Our tax pros will help you find each and every deduction you deserve.
- Advertising
- Phones (landline, fax or cell phones related to business)
- Computer & internet expenses
- Transportation and travel expenses
- Local transportation – Did you take any business trips this year? You’ll want to include your mileage along with any car and truck expenses. For public transportation, parking and tolls, you should include your contemporaneous log (recording of transactions as they happen) or receipts.
- Travel away from home – You should account for mileage or actual expenses if you drove – or airfare for any flights. Be sure to include costs for hotels; meals and tips; and taxi fares and tips. Remember to include any miscellaneous expenses, such as your internet access (hotel, internet café, etc.).
- Commissions and fees
- Contract labor expenses paid to subcontractors and independent contractors
- Depreciation
- Cost and first date of business use of assets
- Records relating to personal use of assets
- Sales price and disposition date of any assets sold
- Documentation of prior-year depreciation
- Amortization of intangible assets (e.g., patents or copyrights held)
- Business insurance
- Casualty loss insurance
- Errors and omissions
- Other
- Interest expense
- Mortgage interest on building owned by business
- Business loan interest
- Investment expense and interest
- Professional fees
- Lawyers, accountants, and consultants
- Office supplies
- Pens, paper, staples, and other consumables
- Rent expense
- Office space rent
- Business-use vehicle lease expense
- Other
- Office-in-home
- Square footage of office space
- Total square footage of home
- Hours of use, if operating an in-home daycare
- Mortgage interest or rent paid
- Homeowner’s or renters’ insurance
- Utilities
- Cost of home, cost of separate improvements and first date of business use
- Wages paid to employees
- Employee benefit expenses
- Other expenses
- Repairs, maintenance of office facility, etc.
- Estimated tax payments made (including property taxes and sales taxes if applicable)
- Other business–related expenses
- Health insurance – Whether you’re a sole–proprietor who is covering their family, a partner or you have S corporation shareholders, you’ll want to account for premiums paid on behalf of those individuals. Also, you should gather information on your spouse’s employer provided insurance if applicable.