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Tax Documents you need for income taxes:
Most of this information is covered in our electronic questionnaire. Returning clients should have received an email from Prospect with instructions on how to access the questionnaire. If you are a new client, please contact us if you have not received access yet.
Here is a list of common, “official” forms you may receive.These forms are normally made available to you by January 31. The forms will either be mailed to you or available for download from the issuer’s website.
- 1098-T
- 1099-R
- SSA-1099
- W-2
- 1099-Int
- 1099-NEC
- 1099-Misc
- 1099-Div
- 1099-B
- 1098
- 1095
- Form 5498
- K-1
- W-2
- 1095-B
2023: Premium Tax Credit, Child Tax Credit, EITC, and more:
Premium Tax Credit:
- Form 1095-A, IRS Form issued to taxpayers who had health insurance coverage through CoveredCA.com or another government marketplace
- Form 3895, CA equivalent of the Form 1095-A. Issued from CoveredCA.com
Child Tax Credit & Earned Income Tax Credit:
- Taxpayers who qualify for either one or both credits must provide proof that the dependent lived with them
- Don’t be surprised if your tax professional asks for paperwork documenting this. Common documents used can be Form 1095s, school/medical statements, etc.
- In anticipation of this, please include proof with the documents that you drop off.
If these documents apply to you, they are necessary for us to have to properly complete the tax return. Filing a return without providing this information will adversely impact the time it takes to process your return and the refund.
2021: Advanced Child Tax Credit, Economic Impact Payments, and more:
- Letter 6419, containing the amount of Advanced Child Tax Credit payments received by the taxpayer for 2021 and the number of qualifying children used to calculate the advanced payments
- Letter 6475, containing the amount of Economic Impact Payments received by the taxpayer for 2021, including initial payments and any “plus-up” payments received
- Form 1095-A, IRS Form issued to taxpayers who had health insurance coverage through CoveredCA.com or another government marketplace
- Form 3895, CA equivalent of the Form 1095-A. Issued from CoveredCA.com
If these documents apply to you, they are necessary for us to have to properly complete the tax return. Filing a return without providing this information will adversely impact the time it takes to process your return and the refund.
Stock Trading:
Your broker (i.e TD Ameritrade, Fidelity, Charles Schwab, etc) will issue a 1099-B that should have the proper information to calculate capital gain. If you have a large number of transactions, please provide us with the 1099-B and an Excel Spreadsheet that can be downloaded from your broker’s online account.
Cryptocurrency:
- “Rewards” from crypto staking are subject to tax. If you earned more than $600, the crypto platform (i.e Coinbase, Gemini, Blockfi, etc.) will issue you a 1099. If less than $600, you should still report this amount on your tax return.
Cryptocurrency buying and selling
- Cryptocurrency becomes a taxable event when you either:
- 1. trade a cryptocurrency for another cryptocurrency (i.e. using Bitcoin to buy Ethereum) or,
- 2. sell a cryptocurrency for fiat currency (i.e. selling Bitcoin and receiving US Dollars)
- Cryptocurrency becomes a taxable event when you either:
- Traders who have more than 20 or so trades should consider using a software to assist with accumulating the trades, due to the complexity of tracking Crypto. We recommend www.taxbit.com
- Prospect will need the proper report from TaxBit or a report that details the information we need.