When I Meet With My CPA …

Derive happiness in oneself from a good day’s work, from illuminating the fog that surrounds us.

- Henri Matisse

Believe it or not, I don’t do my own taxes.

Sure, I know the tax code much better than your average professional (it is, after all, a big part of what we do around here), but I’m learning to live my life by a simple philosophy:

If I can delegate it, do so.

Now, of course, that little motto carries a bunch of “caveats” and exceptions. For instance, I can *technically* delegate almost every aspect of running my firm, but that wouldn’t exactly be wise. Just like you can technically delegate pretty much every aspect of raising children, but there are just some things that only Mommy or Daddy can do.

But the process of preparing taxes lends itself to being done by someone who sees these forms every day, who knows the pitfalls (they see them weekly), and can accomplish in two hours what will take me ten.

(A little bit like estate planning, actually. < ahem > )

But just because I delegate, doesn’t mean I dump! I’m a pretty good planner–if I do say so myself — so, I thought I’d share with you a little checklist I threw together to make sure I don’t miss anything when I meet with my CPA.

This will help YOU to delegate this sometimes-painful process effectively. I hope it’s helpful!

Oh..and if you need a good CPA in the area, I know of someone that can certainly help you.

Just one more note regarding last week’s blog on building financial character (and character overall) for kids.  Check this friend’s website out for ideas on how you can instill character in your kids.  www.kidofcharacteroffer.com

Rowel Manasan’s

“Straight Talk” Personal Strategy

Manasan’s Tax-Time Checklist

This list is mostly complete–but I’m always looking to add to it! Let me know if you think I missed anything.

Personal Data

Social Security Numbers (including spouse and children)

Child care provider tax I.D. or Social Security Number

Employment & Income Data

W-2 forms for this year

Tax refunds and unemployment compensation: Form 1099-G

Miscellaneous income including rent: Form 1099-MISC

Partnership and trust income

Pensions and annuities

Alimony received

Jury duty pay

Gambling and lottery winnings

Prizes and awards

Scholarships and fellowships

State and local income tax refunds

Unemployment compensation

Homeowner/Renter Data

Residential address(es) for this year

Mortgage interest: Form 1098

Sale of your home or other real estate: Form 1099-S

Second mortgage interest paid

Real estate taxes paid

Rent paid during tax year

Moving expenses

Financial Assets

Interest income statements: Form 1099-INT & 1099-OID

Dividend income statements: Form 1099-DIV

Proceeds from broker transactions: Form 1099-B

Retirement plan distribution: Form 1099-R

Capital gains or losses

Financial Liabilities

Auto loans and leases  (account numbers and car value) if vehicle used for business

Student loan interest paid

Early withdrawal penalties on CDs and other fixed time deposits

Automobiles

Personal property tax information

Department of Motor Vehicles fees

Expenses

Gifts to charity (receipts for any single donations of $250 or more)

Unreimbursed expenses related to volunteer work

Unreimbursed expenses related to your job (travel expenses, entertainment, uniforms, union dues, subscriptions)

Investment expenses

Job-hunting expenses

Education expenses (tuition and fees)

Child care expenses

Medical Savings Accounts

Adoption expenses

Alimony paid

Tax return preparation expenses and fees

Self-Employment Data

Estimated tax vouchers for the current year

Self-employment tax

Self-employment SEP plans

Self-employed health insurance

K-1s on all partnerships

Receipts or documentation for business-related expenses

Farm income

Deduction Documents

State and local income taxes

IRA, Keogh and other retirement plan contributions

Medical expenses

Casualty or theft losses

Other miscellaneous deductions

I think this list is pretty complete, but as I said before, I’d love to hear feedback on anything I may have missed.  I hope this helps!

To your family’s financial and emotional peace!