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Venable Accounting Inc. - Checklist

Information needed to prepare your return...

This is meant to serve only as a guide for gathering and organizing your paperwork. It is designed solely to provide general guidance to the reader, and is not intended to be a subtitute for personalized professional advice based on a particular factual situation.  Thus, the information provided in this Guide does not constitute professional accounting or legal advice and should not be interpreted as such.  Although we have made every reasonable effort to ensure that the information is accurate, Venable Accounting Inc offers no warranties, expressed or implied, on the information provided in this Guide.  The user of the information contained herein accepts it "as is" and assumes all responsibility for its use.

• New Client?  Copy of last year's return if possible.
• All income statements:  W-2 Forms, Interest and dividends statements,  Annuity or pension statements, State tax refunds, Unemployment compensation, Social Security benefits received, Commissions or rents, K-1's from corporations, partnership or trusts.
• NEW:  Did you receive an Economic Recovery Payment?   Those eligible to receive SSA, SSI, Railroad Retirement or Veterans Disability compensation or pension benefits should have received a $250 Economic Stimulus Payment last year.  
• NEW:  Did you buy your principal residence between 4/9/08 and 4/30/2010?  Substantial homebuyer credits (up to $8,000) may be allowed.  If you have not already applied for this credit please bring in closing statements.
• NEW:  Did you purchase a NEW vehicle between 2/16/09 and 1/01/2010?  You may qualify to take a deduction for the sales tax you paid, even if you do not itemize.  Bring in the detailed sales receipt.
• Property taxes paid in 2009 (regardless of what year they are for).  You may be able to take a deduction even if you do not itemize.
• If you are itemizing: Amount of medical expenses paid including Health Insurance premiums (if not pre-taxed from your employment), Doctor or hospital co-pays, Prescription drugs (non prescription health supplements do not qualify), Vision care, eyeglasses, contact lenses and solutions, Mileage back and forth to doctors or hospitals (you must have a mileage log**), Forms 1098 Statement of Mortgage Interest Paid, Receipts and cancelled checks for charitable contributions, Sales Tax - you can use the tables or actual receipts, but don't forget receipts for vehicles, boats, mobile homes, recreational vehicles, motorcycles, airplanes, leased vehicles - the sales tax paid on those items get added to the tables. If you paid State Income Tax to another state, you'll have the option of taking State Tax or Sales Tax, but not both, Job expenses such as un-reimbursed mileage (you must have a mileage log**), uniforms, Union dues, hotel and meal expenses for out-of-town travel.
• If you re-financed your home in 2009:  copies of the settlement statements to check for possible deductions. 
• If you sold real estate, stock or a mutual fund during the year we need a description of the property, dates of purchase and sale, purchase and selling price, expenses of sale, for real property -- a list of improvements and your settlement statements for both the purchase and sale.
• Estimated Payments (ES) you made for 2009.  Don't forget the January 15, 2010 payment which was the 4th quarter 2009 tax payment.
• Child Care Expense including amount paid for each child, name, address and ID number of provider (required to take the credit) for children up to age 13.  If the child turned 13 during 2009 you can deduct those expenses paid up to the 13th birthday.
• If you have rental property:  rental income and list of expenses, depreciation schedule if it was rented in prior year or purchase information if this is the first year.
• If self-employed:  Your total income and list of expenses, mileage log if you are taking auto expense, health insurance premiums paid on insurance you purchase yourself, depreciation schedule if you have property placed in service in a prior year.  Save on bookkeeping fees by totaling the year's income and expenses by category.  Call to see if we have a worksheet for your type of business.  The IRS allows a home office deduction if you use the office regularly and exclusively for business.  If you qualify we'll need the amounts paid for utilities, home insurance and repairs, the square footage of the office and square footage of your home.
• Education expenses for post-high school including tuition and books.  NEW in 2009 the Hope Credit has been renamed the American Opportunity Tax Credit and is allowed for the first 4 years of post-secondary education.  Also NEW, the credit includes expenses for course materials.  The Lifetime Learning Credit is still available for an unlimited number of years and still allows just tuition and fees (not course materials).
• Educators.  Congress has extended the Teachers Classroom Expense Deduction for 2009 for up to $250 of out-of-pocket costs without itemizing.  (Amounts over the $250 are still an itemized deduction subject to the 2% of AGI limitation.)
• IRA's - Be sure to let us know if you made contributions to or took distributions from your IRA. Remember -- you have until April 15th to make your IRA contributions.  The maximim contribution for 2009 is $5,000 ($6,000 if age 50 or above).  Phase out rules apply for active participants in your employer's retirement plan.  You may also be eligible for the Retirement Savers Credit.  If so, we will need copies of your 2007 and 2008 returns (if we did not prepare them).  The lookback rule for distributions relating to this credit are 1/1/2007 through 4/15/2010.
• Were you born in 1939? The IRS normally requires that distributions from regular (not ROTH) IRA's commence by April 1 of the year following the year you turn 70 1/2.  However, those distribution rules were suspended for 2009.  If you turned 70 1/2 in 2009 you did not have to take a distribution.  If you turned 70 1/2 in 2008 you were still required to take a distribution no later than April 1, 2009.  (As of this writing you will be required to take your 2010 distribution, however stay tuned to this web site for late developments as we understand Congress is considering extending this provision.)
• Did you sell your residence in 2009?  If you owned and lived in it 24 out of the 60 months before the sale you may be able to exclude up to $250,000 of the gain ($500,000 if you and your spouse both qualify).  There are a few exceptions to the 24/60 time limits.  New in 2009, limitations apply if you've used the home for nonqualified use (ie rental, vacation home, office in home).
• Energy credits - The energy credit is back for 2009 and 2010 with a new $1500 lifetime limitation.  It is available even if you previously took energy credits.  We'll need the manufacturer's certification showing the amount of this credit and dated receipt. 
• Child with Investment Income:  The Kiddie Tax applies to children up to age 19 (age 24 and a full-time student) with investment income over $1,900.
• Non-custodial Parent claiming child:  If you are NOT the custodial parent but claim the child as a dependent you must attach Form 8332 to your return.  The form must be signed by the custodial parent.
• Child Tax Credit stays at $1,000 maximum per child for 2009.  The child must be under age 17 on December 31, 2009.  The credit phases out if your income is too high.  New for 2009, more of the credit may be refundable due to changes in how it is calculated.

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