How to Help Your Accountant Prepare Your Tax Return

​Around January 1 each year, companies send 1040s and other tax documents to filers nationwide. You can help your accountant reconcile your taxes by following a few tips.

An enjoyable tax experience begins with the client's relationship with their tax professional. In addition to ensuring your tax professional has the requisite credentials (CPA or CFA), look for someone with patience, compassion, and a proven track record. Review the person's regulatory history with the Securities and Exchange Commission, which provides information related to the advisor's registrations and licenses that allow them to provide legal advice. This regulatory body also provides information related to the advisor's past employment history. Ultimately, this professional should be the go-to person for all your tax concerns and questions and with whom you feel comfortable discussing your life and financial goals. These issues play a role in determining tax liability.

Another way to prepare is to update the information the tax professional will need to prepare your tax return. Updated information includes essential personal/business information, physical and mailing addresses, telephone numbers, and, if applicable, direct deposit information. The client should also ensure that their tax preparer has updated contact information so they might communicate with them in case questions arise regarding the tax return.

Another strategy for helping tax preparers file their returns includes asking questions beforehand. Ask questions about any changes that will take place and how these changes might impact your tax status. Ask preparers how to improve your situation or reduce your tax liability. Ask what documents the tax preparer might need. Discuss deadlines and regulations that might impact your return, including when to submit specific paperwork outside of the April deadline and compliance-related questions that impact benefitting from a deduction or credit or avoiding paying extra that year.

Gathering and organizing documents can alleviate the stress of filing taxes with a preparer. In addition to documents you receive from employers, gather statements regarding bank accounts, brokerage firms, and any business partnerships. Common forms include the W-2, 1098, 1099-B, and other forms.

Other supporting documentation to take include receipts. Depending on the state you live in, you may save substantially on sales tax. You can also reduce tax liability by deducting business travel and other business expenses. You may be able to take deductions on property and investment-related taxes and charitable giving. However, you must have receipts showing you made these purchases and donations.

Schedule an appointment with your tax preparer as soon as you have organized all the information. Scheduling an appointment early may prevent excessive wait times since the closer to the tax filing deadline, the more clients the tax preparer will have. If you miss the deadline, you may have to pay interest on any taxes simply because you did not schedule an appointment early enough.

After the tax preparer has filed the return, begin preparing for the following year. Discuss life-changing events that will impact your tax liability, such as getting married, changing jobs, making new investments, making large purchases, and planning your estate. These discussions can help you collect information and documents you need for the next tax season.

William Martensen

Shop