What documents do I need for a tax review?

Everyone’s life is different, and similarly, everyone’s tax return is different.  

To perform a tax review, the first step is to determine why the review is being performed.  If a tax review is completed to ensure that, although your year has not changed, you were unhappy with last year’s outcome, then an analysis of withholdings throughout the year is necessary. However, if a tax review is needed due to a change between years, then a more detailed review can be performed in a specific situation.  

As a starting point, the following documents are used to perform a tax review:

  • The prior year’s tax return – This provides guidance on where to start the review.
  • The most recent YTD income statements:
    • If you are a salaried worker, this would mean a YTD pay stub for all jobs worked during the year
    • If you are an hourly worker, this would mean a pay stub for a typical work week as well as a YTD pay stub if the most recent pay stub has a reduced number of hours
    • If you receive a pension, a YTD statement of pension income and withholdings
    • If you take distributions from pre-tax accounts, a YTD accounting of the distributions taken and withholdings from each
  • Details of any significant changes in investments, such as any gains / losses on sales made during the year or new investments made which earn interest and / or dividends
  • Updates to any deductions for the year such as:
    • Mortgage changes
    • Charity contributions
    • Childcare expenses
  • It is also important to put together any information about significant changes between tax years.  

Tax reviews can be a detailed, but important part about staying up to date on your finances and removing the uncertainty out of tax season. 

Have questions? Schedule a complimentary consultation for assistance with your specific situation. We’d love to help!