Tax Organizers

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Tax Organizers

During the past year we had several situations where clients forgot they made estimated tax payments. In the past, IRS would credit the taxpayer for the extra payment(s) and refund the money. This year the IRS ran each client with such an error through their fraud detection protocol. Due to this change in process, in the year of the pandemic, some clients still have not received the refund of their 2019 overpayment.

As the returns get more complicated and penalties more severe, using the Tax Organizer as a tool will help minimize missed items of income, incorrect estimated tax payment information, or missed deductions to which you may be entitled.

We have shortened the length of our tax organizer in attempt to make it less daunting. To help you use it as a tool in providing to us your tax information. For most of the information we just need you to use a check mark to confirm the information is still the same and/or that you have included the supporting document W2/1099/Mortgage statement for that item of income or expense.

However, we do need you to fill out the tax Organizer in the following areas:
Personal information -If we inherited your return from Phil or Richard it is possible that they used a 1/1/xx date for your birthday. Please check your personal information carefully updating your address, email, telephone numbers if they changed. We also need to know if there are any chances in dependents – parents, new births or graduation from college.

Tax payments – If you made estimated tax payments during the year please check your bank statements to confirm the checks cleared your bank account. Maryland has been very bad in accurately processing estimated tax payments. Please break out each payment made separately and list the check number, payee, amount, and date of payment.

Medical expenses -Only provide receipts for nursing home letters LTC 1099 or medical deduction items for which you have questions. Otherwise, use the space in the tax organizer to provide summarized information for hospital, doctors, independent care, prescriptions, and medical supplies.

Charitable contributions -- You must have a receipt for each charitable contribution that you claim on your income tax return. This would include a letter from the charity or a canceled check. No tax deduction Is allowed for contributions made in cash or for which you do not have a receipt. For non-cash contributions please provide

  • the Name of the charity,
  • the charities address,
  • the date you made the contribution
  • your estimate of Fair market value

If you need a way to value your dontations try using Goodwill's donation calculator tool.

If you are giving Non-cash contributions in excess of $5000 in appraisal may be required

Taxpayers claiming the standard deduction are still entitled to a $300 charitable contribution deduction.

The section of questions -- this helps us find unusual transactions or certain reporting requirements that bear substantial penalties if missed, including but not limited to,

  • foreign transactions,
  • crypto currency transactions.

Your answers to these questions assist us in making sure all items of income or expense are included in your tax return.