How to Prepare for Your Tax Preparer: A Step-by-Step Guide

While the IRS hasn’t officially announced when it will start accepting tax returns, the agency typically begins in late January.  So now is the time to gather your financial documents and get ready for that all-important meeting with your tax preparer. Whether you’re a seasoned filer or this is your first time working with a professional, being well-prepared can save you time, reduce stress, and even lower your tax bill. Here’s a comprehensive guide to help you make the most of your meeting.

  1. Organize Your Personal Information

Before diving into financial documents, make sure you have the following ready:

  • Identification: Bring a valid government-issued photo ID.
  • Social Security Numbers: Have your Social Security Number (SSN) and those of your dependents.
  • Previous Year’s Tax Return: This provides your preparer with a starting point for this year’s filing.
  1. Gather Income Documents

Your tax preparer will need a complete picture of your earnings for the year. Common documents include:

  • W-2 Forms: For wages earned as an employee.
  • 1099 Forms: For income from freelance work, investments, or other sources.
  • Investment Income Statements: Including dividends, interest, and capital gains.
  • Business Income Records: If you’re self-employed, compile your income and expenses.

Tip: Double-check that all income sources are accounted for to avoid errors.

  1. Compile Expense and Deduction Records

Deductions can significantly lower your taxable income. Prepare records for:

  • Medical Expenses: If applicable, include receipts for medical bills and prescriptions.
  • Charitable Donations: Keep receipts for cash and non-cash donations.
  • Home Office Expenses: For remote workers or self-employed individuals.
  • Education Costs: Gather tuition statements (Form 1098-T) and other educational expenses.
  • Childcare Costs: Include receipts and the provider’s tax identification number.
  1. Review Major Life Changes

Certain life events can affect your taxes. Inform your preparer if you experienced any of the following:

  • Marriage or divorce.
  • The birth or adoption of a child.
  • Buying or selling a home.
  • A new job or retirement.
  • Changes in residency or state of employment.
  1. Prepare Business-Related Documentation

If you own a business, come prepared with:

  • Financial statements, such as a profit and loss statement.
  • Receipts for significant business expenses.
  • Vehicle mileage logs if you use a personal car for business purposes.
  1. Know Your Questions and Concerns

Write down any questions or issues you want to discuss with your tax preparer, such as:

  • How to maximize your refund.
  • Estimated payments for the next tax year.
  • New tax laws that might affect your situation.
  1. Choose the Right Preparer

Ensure the tax preparer you choose is qualified and experienced. Look for:

  • Appropriate credentials (e.g., CPA, EA, or tax attorney).
  • Positive reviews or referrals.
  • A clear understanding of your financial situation.
  1. Understand Payment Terms

Before your meeting, ask about:

  • The fee structure (hourly, flat rate, or percentage of refund).
  • Additional costs for specific services like audit assistance.
  1. Bring a Positive Attitude

Taxes may not be fun, but a positive, proactive mindset can make the process smoother. Approach your meeting with an open mind and a readiness to collaborate.

Final Thoughts

Preparing for your tax preparer is about more than just paperwork—it’s about understanding your financial picture and ensuring nothing gets overlooked. By following these steps, you’ll be well on your way to a successful tax season, peace of mind, and possibly even a bigger refund.

We here at WILFAM Tax can help make your filing season a great experience. Start organizing today!