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Tax Preparation Tips

HollyP
Employee Tax Expert
1 10 821

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It is helpful to get organized before you start preparing your tax return. Let’s review some of the information that you can gather now to save time when working on your taxes.

First, make sure that you have the Social Security numbers and dates of birth for you, your spouse, and your dependents.

Next, gather all documents related to your income from wages, investments, state and local tax refunds, unemployment, alimony (if the divorce was finalized prior to January 1, 2019), business or farming, retirement distributions, rental properties, Social Security benefits, the sale of property, and any other miscellaneous sources. 

It is also important to gather information regarding adjustments to your income such as contributions to retirement and pension plans, student loan interest payments, contributions to Medical Savings Accounts (MSA), moving expenses, self-employed health insurance premium payments, alimony payments (if the divorce was finalized prior to January 1, 2019), and educator expenses.

Then you’ll want to collect your information for itemized deductions and credits. This includes child care costs, education costs, adoption costs, energy-efficient home improvement costs, home mortgage interest payments, investment interest expenses, charitable donations, casualty and theft losses, medical and dental expenses, and other miscellaneous tax deductions.

You should also get together any information about the taxes that you’ve already paid. This includes state and local income taxes, real estate taxes, estimated taxes, and personal property taxes.

Lastly, you will need your direct deposit information and any foreign bank account information. 

For more details on everything that you will need to quickly and accurately prepare your tax return this year please check out our article, Tax Preparation Checklist.

10 Comments
helioresearch
New Member

I want to ask a question about filing status when filing for a person with dementia

[email address removed]

helioresearch
New Member

With a spouse who has dementia and therefore a dependent, would there be more financial benefit to file jointly as we always,  or to file as a single person with a dependent? 

VolvoGirl
Level 15

If you are married you can not file Single.  You still file a Joint return.

Tatabox8
New Member

Hi,

 

I have a question for filing a zero tax return for a terminated (cancelled) LLC. We started an LLC at the end of 2021 and purchased equipment. We didn’t end up having time to setup and start our business with full time jobs and other commitments. We decided to cancel our LLC. I was wondering if I can still claim the business expenses even though we never earned income?

 

Thank you for your time!

 

TeresaM
Employee Tax Expert

No, you are only able to deduct business expenses or start-up costs in the year your business is open and there is income generated. If that has not happened by Dec 31st of that tax year, no expenses are deductible.


For further information, please see Chapter 7 of the IRS publication for Business Expenses.
IRS Publication 535
 

Tatabox8
New Member

Thank you for that information! 

 

I was told that I have to file a final zero return for the state of California. If I purchase turbo tax Business, will the software guide me how to fill out the form as it does my usually personal taxes.

 

Thanks!

Tatabox8
New Member

The return form is 568. I forgot to mention it above.

 

MichelleLO
Employee TurboTax Specialist

California Form 568 is included in TurboTax Individual (Personal) tax products. For more information on when Form 568 will be available, please see the below help article.

State forms availability table for TurboTax individual (personal) tax products

@Tatabox8

andrejules2
New Member

I received payment for a medical settlement from a law firm in Texas. It came because I had suffered from Non-Hodgkins Lymphoma, which was due to my use of Round-Up. How do I list the 2 payments?  

Vanessa A
Employee Tax Expert

Settlement payments for physical illness is not taxable.  Unless, you took a medical expense deduction in a previous tax year, there would be no need to report your settlement.

 

If you did itemize your expenses, then you would only report an amount equal to your itemized medical expenses in previous years. You would report this amount as Miscellaneous Income by clicking the following:

  • Federal
  • Income
  • Scroll down and click show more next to less common income
  • Start next to Miscellaneous Income
  • Walk through the steps to enter your income
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