The relationship between you and your tax professional should be open and friendly, it’s a partnership and you need each other . It’s an ongoing discussion that changes over time and requires attention to detail. It takes having savvy interview skills.
You can always prepare your own returns, the code is based on an individual system and all of the necessary information and forms can be found, for free, at irs.gov. You can even do it by hand still. However, there are benefits to seeing a professional. Sometimes the benefits result in larger refunds. Nothing beats solid experience, know how and education.
The 1040EZ aka the short form:
- Your taxable income is below $100,000.
- Your filing status is Single or Married Filing Jointly.
- You don’t claim dependents; and
- Your interest income is $1,500 or less
The 1040A may be best for you if:
- Your taxable income is below $100,000
- You have capital gain distributions
- You claim certain tax credits
- You claim adjustments to income for IRA Contributions and student loan interest
You must use the 1040 aka the long form if:
- Your taxable income is $100,000 or more
- You claim itemized deductions
- You report self-employment income
- You report income from sale of property.
Items that you may need are:
- 1099’s – Taxable Income IRA or 401K, HSA
- 1098’s – Deductible interest and Real Estate Taxes
- Charitable Contributions
- Profit/Loss Statement (self-employed)
- Information on the sale of assets
- Dependent information