Reminder: Tax Records Needed for 2018 Returns

Tax filing season kicks off in a few weeks. What records should you assemble? Due to recent tax law changes, you may not need all the records you've kept before. Here are several key areas to focus on:

• Personal information: You still must provide your Social Security number (SSN), and SSNs for your spouse and dependents.

• Employment information: Have all Forms W-2 for you and your spouse. A self-employed person must report income from Forms 1099-MISC and Forms K-1, plus information for calculating the new deduction on qualified business income (QBI).

• Child expenses: Provide information for claiming the increased Child Tax Credit (CTC) and Child and Dependent Care Credit. This may include details for a dependent care provider.

• Investments: Include all information on various Forms 1099 for capital gains and losses (including cost/basis information), dividends and interest. Fortunately, this can often be scanned electronically.

• Retirement plans/IRAs: Report contributions to plans and IRAs, the value of accounts and distributions received on Forms 1099-R.

• Rental properties: This requires records of income received and expenses paid in 2018, including amounts, dates and places.

• State and local taxes (SALT): Recent legislation limits annual SALT deductions to $10,000 for 2018-2025, but itemizers still need relevant records of SALT payments.

• Charitable donations: If you itemize, you generally need records for both monetary gifts and donations of property, plus appraisals for property valued above $5,000.

• Mortgage interest: Itemizers must have Forms 1098 for mortgage interest on acquisition debts that remain deductible.

• Medical expenses: Collect records and receipts for medical expenses that may push you above the "floor" of 7.5 percent of adjusted gross income (AGI) for 2018.

• Education expenses: Provide information required for claiming higher education credits, including Forms 1098-T.

​
Under the new legislation, you may not need records this year for miscellaneous expenses, many casualty and theft losses, moving expenses and home equity debts. Call if you have tax record questions about your particular situation.

---