Does ice or snow have you stuck at home? It’s a great time to organize your tax documents and get to your tax advisor. Even if you do not have all your information just yet, we can get started.
Below are a few reminders of key information as you gather your documents:
- Stimulus and Advanced Child Tax Credits: Both items must be reconciled on your 2021 tax return and processing could be slowed down if the amounts reported do not agree to IRS records. To help with this process, the IRS began issuing letters earlier this month indicating the amounts received. Please retain these letters and include them with your tax information.
- Identity PIN: If you were a victim of fraud or identity theft and received a PIN, you should have received a letter in the mail with your 6-digit PIN. Please include this information with your organizer.
- IRA transactions: 1099s often do not tell the whole story. If you used part of your required minimum distribution for a qualified charitable distribution (QCD), please let us know the amount of the contribution and the charity to which it was paid. Also, if the distribution from your IRA was in fact a roll-over or ROTH conversion, we will need to know this as well.
- Cryptocurrency and foreign transactions: Reporting has become more robust on the individual income tax return. Please note in your organizer or discuss with your tax advisor if you have these transactions.
- Gifts to individuals: Gifts over $15,000 to an individual should be reported on a gift tax return. Please let us know and we can provide you with an additional questionnaire to capture the necessary information for reporting.
Stay safe and warm!
