The Bottom Line
The Bottom Line is where Klatzkin’s advisors provide analysis and insight into key developments in taxation, accounting, and other issues and how they affect businesses and individual taxpayers.

Tax Preparation Checklist

By MICHELE D. SLOCUM, CPA

February 2, 2021

Angela Lawrence, Quality Control Coordinator at Klatzkin, contributed to this post.

With 2020 now in the rearview mirror, it’s a good time to start thinking about the documents you’ll need to prepare your tax return.  It can be a lot to keep track of, so we’ve provided a handy checklist of documents to keep an eye out for or to start collecting over the next couple of weeks, as the 2021 tax filing season officially kicks off on February 12th. Since every business and individual is different, these may not all apply to your situation, but it’s a good starting point.  Due to the pandemic, providing the necessary documentation to your accountant will be very important this tax filing season, as many individuals will meet virtually with their tax advisor.

Business

  • 2020 year-end and January 2021 bank statements
  • Accounts receivable aging report
  • Accounts payable aging report
  • Inventory count
  • Quarterly sales tax filings
  • Quarterly payroll tax filings
  • Breakdown by the state of sales and services to customers
  • Loan statements that show the principal balance at 2020 year-end
  • Documentation regarding Paycheck Protection Program (PPP) loans, such as signed loan agreements and forgiveness applications

Individual

  • All relevant 2020 W-2’s
  • 1099’s including interest, dividends, brokerage accounts, Social Security and pension/IRA distributions, rental income, unemployment, and self-employment income
  • 2020 K-1 statements
  • Real estate purchase or sales documentation
  • Documentation for charitable contributions, medical expenses, mortgage interest, and property taxes
  • List of federal, state, and local estimated tax payments made for 2020
  • Payments to childcare providers
  • A list of any significant changes in your situation from the prior year (e.g., the birth of a child, marriage, divorce, etc.)
  • Documentation or information regarding any stimulus payments received during 2020

Contact Us

If you are a client and would like a link to upload your documents safely and securely, please contact the Klatzkin advisor with whom you usually work. If you have questions about the checklist items outlined above, your 2020 taxes, or your plans for 2021, Klatzkin can help. For additional information, click here to contact us. We look forward to speaking with you soon.

©2021 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and does not constitute accounting, tax, or financial advice. Please consult your advisor concerning your specific situation.

About the Author

Michele is a Manager focused on serving the tax planning, reporting, and compliance needs of real estate, professional service and nonprofit organizations. She enjoys working to find tax-saving opportunities, many created through tax reform, including Section 199A deductions, bonus depreciation and capital gains deferral through investment in Qualified Opportunity Zones.    Going beyond the expected...

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