A form, which needs to be filed by Individuals having incomes from different sources
To prepare such form certain basic questions need to ask client few of them are
1. Status of filling as the deduction is based on the status of individual
2. Dependents details (SSN, DOB & Relationship)
3. Now come to the income parts, (ask for supporting documents for income Received during the year)
• Ask whether they get any W2 (i.e. wages details Along with the taxes withheld )
• Details for other income (for interest Form 1099-INT ) even exempt interest need to be reported in form 1040
• Also ensure that client has any foreign accounts & trust if any then needs to report the same in FBAR
• Details with respect to income from capital gain (i.e. consolidated statements from broker : Form 1099-B)
• Details with respect to dividend income (form 1009-DIV) which shows details of qualified dividend (taxed at lower rate)
• With respect to CG Ensure the cost basis for cost not provided in form 1099-B
• Details with IRA Contribution (Form 5498)
• Even asked client whether any income received with respect to business or rental property (Financials for the same)
• Pension and Annuities
• Most Important is details and supporting documents with respect to deduction consider in Schedule A based on that it determined that whether itemized and standard deductions
• Inquire With respect to child and dependent care expenses incurred during the year
The best way to make one questioner for client ask them to revert into the so that you can get all your answers at one stretch and no more follow ups for supporting
just basic briefing of income in form 1040 .
source_ IRS
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