Full Disclosure

It bears repeating that anything unique about your family, your child, your job, may have a bearing on your taxes. Notify your preparer regarding the following.

  • Family events and changes, including deaths and adoptions. Adoptions get preferential treatment in some instances.
  • Persons for whom you are providing more than 50% of their support.
  • A job that is unique or unusual; and if your workplace is in a different state from your residence.
  • If you are a veteran or active military, your state may give you preferential treatment.
  • If you are a retired civil servant, your state may give you preferential treatment.
  • If your child is home-schooled or attends private or parochial school.
  • If any member of your family is disabled or blind.

Additional topics that need discussion.

  • How you obtain health insurance if not through an employer or Medicare; and if you are member of a faith-based health expense sharing ministry.
  • Loan or mortgage forgiveness, including student loans and credit card debt, whether or not you received a relevant tax form. In some cases, the forgiven principal and/or interest is taxable and in some cases, it is not, to be determined by additional details.
  • Donations to registered U.S. charitable organizations (not to individuals), even if not deductible on a federal tax return, may be deductible on a state tax return.
  • Likewise, in some states, mortgage interest paid, property taxes paid and some medical/optical/dental expenses may be deductible, regardless of how they are treated on a federal tax return.
  • If you did, or did not, engage in any way, acquiring or disposing of crypto-currency (e.g., Bitcoin, etc.).

Full disclosure to your tax preparer is essential in computing the correct amount of tax or refund, and avoiding penalties. As an example, you may consider information regarding an adoption to be sensitive and confidential, and not be inclined to disclose that your new child is adopted. However, after obtaining assurance from your preparer that your confidentiality will be respected, you should fully disclose your particulars.