No Receipts Needed

Tax time can often be overwhelming. Not sure what documents to provide us? Take a look at this list of questions to determine the necessary documents you need for your 2022 tax preparation and leave that shoebox full of receipts at home.

Work
Did you work in 2022?

  • Provide the W-2 from each employer you worked for in 2022. Employers have until January 31st to supply W2 forms to you.

Investments
Did you earn any interest income from the money you have sitting in a bank or investment account?

  • Provide the Form 1099-INT showing how much was earned. If the interest received on any account was less than $10, you will not receive this form and will not be required to report the interest income.

Did you own any stocks that paid dividends in 2022?

  • Provide the Form 1099-DIV.

If you sold any stocks in 2022, make sure you have Form 1099-B to show the sale. This form will be provided from the brokerage through which your stock was held.

Other investments/income
Did you receive any distributions from a retirement plan?

  • Make sure to provide the Form 1099-R.

Did you collect Social Security income?

  • Provide the Form 1099-SA .
    • If you plan to start collecting Social Security or taking distributions from a pension or IRA in 2023, let’s talk so we can help you plan for the tax impact!

Did you put money into your IRA during 2022? If so, that contribution can help offset some of your income! If you didn’t contribute yet but want to take advantage, it’s not too late. You have until April 18th, 2023, to make a 2022 IRA contribution.

Did you sell any cryptocurrency during the year? If so, you’ll need to report the sale on your tax return.

  • You will need to gather the price you purchased the crypto for, as well as the price you sold it for. The purchase date and sale date are also necessary.

Home
Are you a homeowner? If so, then be sure to provide the amount you paid in property taxes in 2022.

  • If you have a mortgage on your home, then look for Form 1098 from the mortgage company to show the amount of interest paid on your mortgage for the year.
  • Did your mortgage get sold to a new servicer during the year? Or did you refinance during the year? If you can answer “yes” to either of these questions, make sure to get a Form 1098 from ALL mortgage servicers you made payments to in 2022.
    • While not all taxpayers are able to take advantage of that amount on their federal return (only taxpayers who take the itemized deduction will see an effect from their property taxes), the State of New Jersey also provides a deduction for your property taxes paid.

Do you rent your main residence? If so, NJ state did not forget about you. New Jersey renters are able to take a deduction of 18% of the rent paid on their main residence each year!

Expenses
Did you have any out-of-pocket medical expenses in 2022? If so, it may make a difference on your tax return. Aside from the benefits for those who itemize on the federal income tax return, anyone can take advantage of the medical expense deduction regardless of whether you use those expenses on your federal tax return.  For NJ, the medical expenses must only exceed 2% of your income, which is much lower than the federal 7.5% threshold.

  • Some examples of out-of-pocket medical expenses you may want to total up for 2022 include:
    • Doctor/dentist/eye care co-pays
    • Prescription and over-the-counter medication
    • Glasses/contacts
    • Therapy
    • Wheelchairs or other medical related equipment
    • Improvements made to your home to accommodate a medical issue such as a wheelchair ramp

Was your health insurance provided through the health insurance marketplace (such as GetCoveredNJ)? If you are covered by the marketplace, the IRS will not allow you to file your tax return unless you report the information from Form 1095-A on your tax return. All you need to do is provide the Form 1095-A to us, and we’ll take care of the rest!

Unless you think you may itemize for tax year 2022, there’s no need to page through those credit card statements to find the charitable donations.

  • Provide us with the total amount of your donations for the year and keep a record of those receipts for yourself.

Did you purchase an electric vehicle in 2022?

  • If so, you may be eligible for a credit up to $7,500. Please provide a copy of the vehicle bill of sale.

Did you or any of your dependent children attend college in 2022?

  • If so, please make sure to obtain a copy of Form 1098-T from the college or university. This form contains the information needed to take advantage of the American Opportunity Credit or Lifetime Learning Credit, allowing a deduction of up to $2,500 for each eligible student.

Did you pay any childcare expenses for a child 13 years or younger during 2022?

  • If the answer is yes, whether that be a year-round daycare, or the two weeks you sent your child to soccer camp over the summer, you may be able to deduct those expenses on your tax return. Be sure to provide the name, address, and Employer Identification Number (EIN) of the institution, as well as the amount you paid them during the year when you send in your tax information.

Are student loans still bogging you down?

  • If you paid any interest on them in 2022, be sure to get Form 1098-E from your loan provider as you may be able to use some of that interest you paid (up to $2,500) to offset your taxable income.

If you spent a lot of time in Atlantic City this summer, you may receive a Form 1099-G from the casino reporting your winnings for the year. If you weren’t so lucky though, you can offset your gambling winnings with any losses you had during the year.

Be prepared for the upcoming tax year. Put your shoes back in your shoebox.

Bernicker, Eiger and Lang “Making Life Less Taxing”