TAX QUESTIONNAIRE 2022

REFUNDS & BALANCES DUE

(3) Previously-provided and authorize use of bank account info?

If we used your bank account info for last year’s return and it has not changed, answer Yes if you want direct deposit/direct debit again.

If you are a new client you must provide a copy of a check associated with the account you wish to use for direct deposit or direct debit. Handwritten account info cannot be accepted.

ESTIMATED TAX PAYMENTS

(2) Expect significant changes to income in 2023?

If you expect other than minor changes to 2023 income and deductions you will need to provide detailed information so we can determine if your tax withholdings will be adequate, and for calculating estimated tax payments.

GENERAL

(1) Authorize taxing agencies to discuss return with preparer?

If you authorize us to discuss your return with IRS or the state taxing authority we will check a box on the return that authorizes us to communicate with them, if necessary.

(3) Has IRS disallowed or reduced any of your past tax credits?

If IRS has disallowed or reduced any previous tax credits it may impact your eligibility for current tax credits. If this occurred, you would have been notified by IRS.

(4) Did you (a) receive or (b) sell, exchange, gift of otherwise dispose of an interest in a digital asset?

Selling, exchanging or using virtual currency to make purchases requires tax reporting. You will need to provide a detailed transaction statement for the reporting. Also, if you received virtual currency as payment for property or services, tax reporting is required.

(5) Gift cash or property valued over $16,000 to any individual?

If you gifted cash or property (stock, real estate, etc.) valued more than $16,000 you may be required to file a gift tax return even though no gift tax is due.

(6) Did you exercise employee stock options?

If your employer made stock options available to you and you exercised them in the tax year there may be reporting required on your tax return. Do NOT answer yes to this if you merely sold stock in a publicly traded company.

(8) Pay $2,400 or more to a household employee (nanny, housekeeper)?

If you paid $2,400 or more to a nanny or housekeeper you may be required to file employment tax returns and Form(s) W-2. Failure to comply with this tax law can result in significant penalties.

(10) Make energy efficient improvements to your primary home?

For 2022 the lifetime limit of $500 for energy credits remains in place. The credit is allowed for energy efficiency improvements to your primary residence and includes exterior windows, skylights and doors, insulation materials and certain roofs. Energy property qualifying for the credit includes natural gas, propane or oil furnace meeting certain efficiency standards, electric heat pump/central air conditioner, and natural gas, propane or oil water heater.

DEPENDENTS

(2) Did you incur child care expenses while working?

To receive the Child and Dependent Care Credit, the child must have been under age 13 at the time of the care, and it must have been incurred so that you could work.

(3) Claiming a dependent who did not live with you?

Under certain circumstances you may be able to claim as a dependent someone who did not live in your household. The person must be a U.S. citizen or national, must be a relative, must not be the qualifying child of another taxpayer, must have gross income less than $4,400 for the year, and you must provide more than half of the person’s total support for the year.

(5) Any dependent provide more than half of their own support?

If your dependent(s) provided more than half of their own support you may not be eligible to claim certain tax benefits or credits for them. Support includes food, housing, clothing, medical, transportation, vacations, etc.

(6) Any dependent live with you less than half the year?

To claim certain dependent-related credits the dependent must have lived with you more than 182 days during the year. There is an exception for students who otherwise qualify as your dependent but were away at school.

(8) Did you pay more than half of all your home expenses?

To use the Head of Household filing status, you must have paid more than half the cost of keeping up your home, including mortgage interest, property taxes, utilities, insurance, etc.

(10) Are any of the following true for your dependents?
- Dependent had investment income exceeding $1,150, or
- Dependent had wages/earned income exceeding $12,950, or
- Dependent gross income was more than the larger of $1,150 or earned
income (up to $12,550) plus $400

The “Kiddie Tax” rules require dependents with certain types and amounts of income to file a return. In some cases the income may be reportable on the parent's return. The three bulleted items in this question list the income situations where a return must be filed. Note that investment income is interest, dividends and capital gains. Earned income is wages and self-employment income.

FOREIGN INCOME & ACCOUNTS

(2) During 2022 did you have a financial interest in or signature authority
over a financial account located in a foreign country, or were you the
grantor or beneficiary of a foreign trust?

Financial interest in or signature authority in a foreign financial account means you have a foreign bank account, a foreign investment account, a foreign annuity, or some other foreign financial located in a country other than the U.S. This question does NOT refer to U.S. investment accounts that hold foreign investments or receive income from those investments.

(3) Total value of foreign accounts exceed $10,000 at any time during 2022?

If you owned a foreign financial account as described above and the account value exceeded $10,000 at ANY time during the year, special reporting is required on your tax return. Failure to do so can result very large penalties up to $100,000 or 50% of the value of the account.

EDUCATION

(1) Receive Form 1098-T for tuition paid?

If you or your dependent paid tuition to a college or university and you want us to determine eligibility for the tuition credit (max $2,500) you MUST provide a copy of the 1098-T issued to the student by the school.

You must ALSO provide a student account history for the tax year if it is not included on the 1098-T, and it usually is not. The student can obtain this history by logging into the student.

We ask that you wait to deliver your tax information to us until you have obtained and included both of these documents.