Tips For Completing the Paper Tax Organizer

Use a pencil for easier changes.

Do not enter wage and pension information.
Always submit W-2’s and W-P’s. (See below for more information.)

Don’t enter the same information twice. If you don’t know where the information goes, make your best guess and place a question mark beside it.

The column on the right side of each page shows amounts that were on your prior year tax return. Review this column for items that applied the prior year and may be relevant this year. Also compare the amounts to see if their difference seems reasonable.

Use separate worksheets to accumulate figures to arrive at a total for each item and only enter totals on the organizer. If you prefer to use the organizer as a worksheet, circle, or Hi-Light the final figure for the tax return.

Self-Employed:

Minimize the number of expense categories you use. (See the last paragraph of the Minimize Your Tax Preparation Fees page for details.)

I have customized your organizer. Most, if not all, of the expenses categories you used the previous year in your business are listed in the “Other Expense” section at the end of the business expense section. Use this section to enter expenses, as it will prompt you for items that may have been missed. This also makes data entry for me more efficient.

Assets that would normally be depreciated (i.e. tools, furniture, fixtures, equipment, etc.) can be included in “supplies” as long as they cost less than $100 and therefore need not be detailed on the Asset Acquisition page. Always keep depreciable assets that cost $100 or more (i.e. tools, furniture, fixtures, equipment, etc.), business meals, penalties and fines separate, as they require special treatment.

Office in the Home: If you have an Office in the Home, enter your home mortgage interest and real estate taxes on the Office in Home page, not on the itemized deduction page. Don’t enter twice.

Vehicle Expense: Enter the personal property taxes paid on the business vehicle on the Vehicle Expense (Form 2106) page, not on the itemized deductions page. If you are using the mileage method for your vehicle expense deduction (business miles multiplied by the current year cents per mile rate), the only “actual” expense items to enter are personal property taxes, parking, tolls and interest paid.

Self-Employed Health Insurance: If you are self-employed and you, or your spouse, were not covered by a health insurance plan by your employer, enter the total premiums paid on the Adjustments to Income page, not under medical expenses on the Itemized Deductions page. If you, or your spouse, were covered by an employer plan, enter the amount under medical expenses on the itemized deductions page.

Additional information on What Documents to Submit

The purpose of the organizer is to increase accuracy and reduce tax preparation fees. In addition, it lets you know what information was contained in your prior year return so that you can compare current year data to the previous year to determine if the current year amounts seem reasonable. It also helps you determine what information you may need for the current year.

When you submit the original documents with the organizer, it takes more time to process the return. I have to compare the organizer with the documents to see if there is any missing information, or amounts entered in error. I have an obligation to check your input on the organizer if the original documents are included with the organizer. If original documents are submitted, it increases the chance of duplicating information and/or missing information. If you don’t want to pay me to check your work, don’t submit original documents except for forms W-2, 1099-R & W2-G.

I always need the original documents for wages (W-2), pension and IRA distributions (forms 1099-R and W2-G). Submit dividend statements (1099-DIV) if you are not clear on what information to enter. Submit settlement statements (HUD-1) from real estate loans and the purchase, and/or sale of property. In addition, if there is tax-exempt interest or dividends, I will need the original documents, as this can be a complex issue.

If at any time you have information that you are not sure where to place the data in the organizer, submit the document and/or enter a question mark, or comments, next to the information entered in the organizer. More importantly, please call me if you need clarification on any issue. If you are confident with the information you entered in the organizer, do not submit original documents. I always need the original documents for wages (W-2), pension and IRA distributions (forms 1099-R and W2-G).

The 10% organizer discount applies to fees incurred for the input of data to the tax return from the organizer. If half of the data comes from original documents and the other half from the organizer I give the 10% discount on the data entered from the organizer, but no discount for entering data from the original documents. If original documents are submitted I charge for the additional time required to process this information. This extra charge does do not apply to up to the first two W-2s, 1099-Rs, or W2-Gs. The fee for Federal form 1040 and the Virginia form 760 includes processing for up to two W-2s, 1099-Rs, and W2-Gs.

As stated earlier, my goal is to keep fees as low as possible, while maintaining quality and accuracy. However, my primary goal is to provide a comfort level for you and to reduce stress associated with the requirement for filing income tax returns.

I am here to serve you. I am flexible and always open to discussing any concerns, comments, desires and any suggestion that you may have. You can reach me at 540-825-2771, 305-451-4224, or send me an email to info@danghazel.com