What to include in a tax return

[JHZR2]

Hi,

This isnt so much tax help as it is tax protocol. For the first time, Im itemizing my tax deduction on my return.. Im getting about $4100 back from my good ol' uncle! Its all due to mortgage interest, property tax, writing off taxes paid to NJ and Philadelphia, etc.

My question is, what do I include in my return? For example, shall I include a copy of my NJ income tax and Phila. wage tax returns as proof that they were done and right? If I donated thinbgs to the Salvation Army, and each donation was under $500, do I need to give a stamped copy of the donation reciept (itemized list) for the IRS to review? For cash donations with reciept, do those have to be given as proof of donation, even if just petty amounts?

It seems that people could itemize a LOT more than they really deserve. I assume that some sort of proof should be provided, however, I do not see much information on what to give in other than the standard forms.

Any insight to this likely simple and stupid question would be most appreciated.

Thanks,

JMH

 

[TallPaul]

I have itemized for about the last 17 years. I would not include anything unless it is specifically asked for in the form. Normally, just your W2. All the rest remains in your files.

Yes larger donations require a receipt from the charity, but I have never included such receipts in my tax forms. Again, just keep with your records in case you ever get audited.

Look on page A-5 of your 2006 1040 Instructions. At the top left column it says "Gifts of $250 or more." Notice it tells you not to combine separate donations for this purpose, so if each donation is under $250 you wouldn't need a statement from the charty. I would keep a personal record of all donations under $250 that you don't have a receipt for, because it will look a lot better in an audit (which is unlikely). I have never been audited (hmmmm... I have never said that before, either. Hope I didn't just Murphy myself

).

 

[dwendt44]

"just keep with your records in case you ever get audited"
I agree.
Keep everything you think you might need. If you get called in (no necessarily an audit) you've got them handy.
Keep for seven years after (2014).

 

[CivicFan]

I see an audit in your future. Be ready for it and keep all the receipts/documentation for easy retrieval.

 

[williar]

For a paper return, not an electronic (e-file) return, you need to include W2s, 1099s, 1098s (shows interest, dividends, etc). As others said, just keep records of other deductions, such as home mortgate interest and donations.

I like to use tax software (TaxACT) because it tells you exactly what to send in. And e-file is free with the $20 deluxe version.

 

[TallPaul]

No way willar. I have itemized for 17 years and every year have 1099s, 1098s etc. and have never included them. All the data on 1099s and 1098s is reporte direct to the IRS by the issuer. It even says that on some of these forms. You don't have to send all that in. It is for your records.

Civic fan: On what basis do you see an audit in JHZR2's future?

 

[CivicFan]

Quote:

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Civic fan: On what basis do you see an audit in JHZR2's future?

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This: If I donated things to the Salvation Army, and each donation was under $500.

It implies multiple donations with at least one of them close to 500 dollars. IRS will probably scrutinize them.

 

[Bob Woods]

I like to use tax software (TaxACT) because it tells you exactly what to send in. And e-file is free with the $20 deluxe version.

Efile is free with the free basic program too.

 

[TallPaul]

Quote:

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Quote:

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Civic fan: On what basis do you see an audit in JHZR2's future?

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This: If I donated things to the Salvation Army, and each donation was under $500.

It implies multiple donations with at least one of them close to 500 dollars. IRS will probably scrutinize them.

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good point. While I have never been audited, I have never had much in non-cash donations.

 

[JHZR2]

Quote:

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Quote:

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Civic fan: On what basis do you see an audit in JHZR2's future?

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This: If I donated things to the Salvation Army, and each donation was under $500.

It implies multiple donations with at least one of them close to 500 dollars. IRS will probably scrutinize them.

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OK, fine, let me qualify. Ive made several donations to the salvation army, on multiple dates. Each was less than $500 and the total is less than $500. I have taken meticulous notes of everyything, and obtained multiple stamped copies of my donations for my records.

The reason I ask all of this is because this is the first time Ive itemized my return. Being an honest person, it seems like there are so many spots where people could take extra deductions, and without giving any rpoof, walk away with a fat deduction. Im right, In honest, and if they want to audit me, fine, theyre just wasting their time... But that was really the nature of my question - is it best to just send all the reciepots, etc right in my return, as a CYA type of measure? I collected them all to have proof of what I really did. I dont mind sending them, especially if it reduces my chances of an issue or hassle.

Again, simce Im being meticulous and honest, and desire to CMA, I want to do what is the standard and accepted thing.

Thanks for the insight!!

JMH

 

[eljefino]

Nope, save the receipts in the back drawer.

Conformity is the best way to avoid auditing. Having something to prove, or simply creating more paperwork to shuffle, can raise eyebrows.

 

[TallPaul]

When I was a kid, we went over to Canada a lot. My dad always worried about crossing the border, so instead of simply answering the border guy's questions, he would get nervous and start saying all kinds of stuff, "We have this and that and blah blah blah..." Seems we got searched more that way. When I went to Canada by myself years later, I had learned to just answer the questions, directly and succinctly. Anything more seemed to raise suspicion. I think adding a bunch of receits will only make you stand out.

Your whole Salvation Army donation was under $500, you should be fine.