1040 Tax Organizer

Office locations and phone numbers

East Side:Ste 105, 2100 NE Broadway: 503-288-2000.

West Side: 13405 NW Cornell Road: 503-646-5600.

You can book your appointment online by visiting our booking site.

Please book your appointment and then check the "Yes, I have an appointment booked" box, above.

You may be able to claim a tax credit or other benefits if you provided support for another person and meet the requirements. Use this section of the tax organizer to provide information about your child or other person who you supported during the year.

There are several rules that IRS applies to determine if you qualify to claim a person as your dependent.  These rules include:

1. Support: Did you provide support to the dependent?
2. Relationship to you: Your relationship to the dependent
3. Relationship of others: Who else lived with the dependent?  What is their income and relationship to the dependent?
4. Support from others: Did the dependent or any other person or agency help to provide support for the dependent?
5. Residency: The number of months of the year the dependent lived with you 
6. Age and income of the dependent
7. Custody: Is there a split custody agreement or divorce decree that awards dependency?
8. Citizenship: Is the dependent a US citizen, resident or greencard holder?
9. Student: Was the dependent a student?
10. You: Are you the parent of the dependent?

The Child and Dependent Care Credit provides tax savings for certain costs of caring for your dependent so that you can go to work or school.

• You may be eligible to claim childcare credits on both your federal and state returns.  
• You may claim costs paid for the care of your child under age 13 or a disabled dependent or spouse of any age.
• You may claim costs for sending your child to after school programs and summer camps if these camps serve as childcare to enable you to work, go to school or look for work. 
• You must keep proof of your expenses in the form of cancelled checks and receipts.
• You must describe the relationship of the provider to your child. For example: None, grandparent, sister, aunt, etc.

IMPORTANT:

Review this information before moving to the next part of this organzier.

 Did you answer yes to:

1. Self-Employment (1099NEC) income?  If yes, click this link to be directed to our Self-Employment Organizer page.
   
   
2. Rental Income?  If yes, click this link to be directed to our Rental Income Organizer page.

Reporting Requirements

If you were a U.S. citizen or greencard holder, or if you were a U.S. resident for tax purposes because you met the substantial presence test during the tax year, you are required to:

1. Disclose ownership foreign financial assets
2. Disclose a beneficiary interest in, or signature authority over a foreign trust
3. Report ownership of foreign pension, RRSP, superannuation funds, or any other kind of foreign retirement 
4. Report receipt of foreign gifts and inheritances
5. Report if you have a 10% or greater ownership of a foreign corporation, LLC, or partnership, of if you are an officer of a foreign corporation or LLC
6. Report ownership of Passive Foreign Investment Company (PFIC) interests, interest in foreign investment funds, such as foreign mutual funds or real estate investment groups
7. Report report your worldwide income, even if you did not live in the United States at any time during the current or prior years
8. File FinCEN Form 114a if the agregate value of your foreign financial assets exceeded $10,000 U.S. dollars at any time during the tax year

Your worldwide income includes any income you earned from investments, business interests, wages, self employment, gross rental income, pension or other form of retirement income, social security, capital gains, interest, dividends, crypto, etc.

Foreign Trusts, Gifts or Inheritances
U.S. law requires you report receipt of foreign gifts and inheritances in the following situations:

1. You received a gift or inheritance from an individual or a group of related individuals valued at more than $100,000.
2. You received a gift from a foreign corporation valued at more than $10,000.
3. You received property from a foreign trust.
4. You contributed property to a foreign trust.

Reporting requirements for foreign income, assets, trusts, gift an inheritances can be complex.  IRS can impose steep penalties for failure to report ownership of foreign property, or transactions with foreign trusts. 

Please complete our Foreign Income or Assets Tax Organizer to provide our staff with information we need with respect to your foreign income, assets and other foreign interests.

Medical Expense Worksheet

• You may deduct unreimbursed medical expenses, to the extent they exceed 7.5% of your income, as an itemized deduction
• If you are self employed, you may be able to deduct the cost of your health insurance premiums, even if you don't itemize deductions
• If you are age 66 or older, you may be able to claim medical expenses as a deduction on your Oregon return even if you do not qualify to claim expenses on your federal return. IF you qualify, indicate total expenses paid for taxpayer and spouse.
• If you withdrew money from your health savings account, you must use the money to pay qualified medical expenses.
• The range of medical expenses deductible under the law is quite broad. It is worthwhile to keep track of all medical expenses and to tax plan by paying large medical bills in a single year rather than paying them over time.
• You may deduct medical costs paid by credit card or other loan.

Charity Worksheet

You may be able to deduct amounts that you donated to charity.  The rules for claiming charitable deductions are as follows:

1. Oregon-only deductions - You can itemize on your Oregon return even if you claim the standard deduction on your federal return. 
2. If you are itemizing deductions on your IRS or state returns, you can deduct:
   1. All cash contributions made to qualified nonprofit organizations. 
   2. The value of used property that you donate to charity.  The following rules apply to deducting donated property:
      • It must be personal property that you own.
      • You must provide the cost of each item you donated.
      • You must provide your estimate of the used fair market value (FMV) of the property you donated.
      • You must provide the name and address of the organization you donated to.
      • You must provide the purchased date and donation dates.
      • Cars are limited to a $500 deduction unless the charitable organziation provides documentation allowing a higher deduction.
   3. You may be able to deduct volunteer expenses, including auto miles, and supplies.  
3. Political contributions are NOT deductible.  However, if your income is under $100,000 ($200,000 if married), you may be able to claim a credit on your Oregon return.
4. You must keep written records that prove you donated the money or property.  Proof includes:
   • A receipt from the charitable organization.
   • Evidence of the donation in the form of a canceled check, credit card, or bank statement.

Complete the Charitable Donation Worksheet below if you would like to claim this deduction on your return.

Please provide the amount of each estimated tax payment you made to the IRS, state or city for this tax year.

Receipt of Refund & Payment of Tax

We recommend direct deposit for refunds and direct debit for tax payments.  If you want direct deposit or debit, we will need you to provide us with accurate account information.  You can attach a voided check, or other evidence of your bank information.  

Terms of Engagment

Thank you for choosing Pacific Northwest Tax Service to assist you with preparation of your tax return(s). This letter confirms the terms of our engagement with you and outlines the nature and extent of the services we will provide.

We will prepare your federal, state, county, and city income tax returns for the year(s) you identify in this Agreement.  We will depend on you to provide the information we need to prepare complete and accurate returns. We may ask you to clarify some items but will not audit or otherwise verify the data you submit. Tax organizers are available on our website at www.pnwtax.com. We encourage you to use these organizers to help you collect the data required for your return. Our staff can also provide you with paper copy of the organizer if you request one.

Payment of Retainer
Payment of a non-refundable retainer is required at the earlier of:

1.    The date you schedule your appointment, or

2.    The date you deliver this tax organizer and/or other documents to us.

 

Amount of retainer:

New Clients:  
Individual Tax Return Retainer - $325 
Individual with Sch. C or E - $650  
Business Tax Return Retainer - $800 
Returning Clients: 
Business Tax Return Retainer - $650 
Individual Tax Return Retainer - $325 

Tax Return Preparation Procedures
To help ensure we deliver you with the best possible service, it is important that you understand the procedures involved in the preparation of your return which are as follows:

Step 1.  Information collection
We ask you complete this tax organizer and deliver documents to us at least one week prior to your scheduled tax preparation appointment. You may deliver documents to us by dropping them off at our offices, by uploading them to our SecureFilePro portal system or by mail/delivery service.  

Step 2.  Analysis and preparation
Prior to your tax appointment, we will review and analyze the tax documents and other information you have provided to us. Our staff will contact you via email or phone to request additional information or documentation that we need, and to ask questions to clarify the information we already have.  Please provide any requested documents or information as quickly as you can.  If you cannot deliver the requested information before your appointment, we may need to reschedule your appointment.

Step 3.  Tax Return Appointment
At your appointment, you and your tax preparer will be able to:

·         Ask and receive answers to any questions either of you might have.

·         Review your completed tax return.

·         Make any necessary corrections to your return.

·         Present required documents for you to sign (paper or electronic format)

·         Review tax preparation invoice and make payment.

Step 4.  Signing Your Return 
You should carefully review your return and notify your preparer of any required changes you believe should be made. It is especially important to advise your preparer of incorrect names, addresses, tax identification numbers, or bank routing and account numbers. You should also ensure that income and deduction amounts seem accurate.

Both you (and your spouse if filing jointly) must sign the following forms before we can electronically file your return:

Form 8879 (E-File Authorization Form).
Pacific Northwest Tax Service Engagement Letter.
Direct Deposit and/or ACH Payment Authorization (if you have elected to receive your refund or pay your taxes directly from your bank account)
Due diligence forms may need to be signed for taxpayers receiving certain tax benefits such as the earned income credit, child tax credit or head of household filing status.
State 8879, 8453 or other e-sign authorizations may also need to be signed for certain state returns.
Dropbox e-signing procedures

We use the Dropbox, e-signature service which allows you to authenticate and sign your return from your computer or smart phone. The following rules apply to e-signing your return:

Look for an email from Dropbox sign.
Your access code password for e-signing signing your return is your full 9-digit SSN.  Enter your SSN, including dashes, in the following format (000-00-0000).
Joint filers receive and sign e-sign documents in separate emails. Taxpayer and spouse will each use your own SSN.
Signing at our offices

If you prefer to sign paper forms, you may do so at our offices.  Your tax preparer, or our front desk staff can print the required forms for you when you come in.  Please have your ID ready to present to our staff at this time.

Step 5. Payment of Tax Preparation Fee
Your tax preparation bill must be paid before we finalize and electronically file your return. You can pay your invoice in any of the following ways:

1.    Authorize.net e-invoice allows you to pay your bill online.

2.    Phone into our offices with your credit or debit card.

3.    In person at our offices with debit or credit card.

Paying by check
We do not accept checks except in the cases of trust and estate returns. We will wait for your check to clear before we e-file your return.

Step 6. Tax Consultant Review and Error Check
After you have signed Form 8879 and paid your tax preparation fees, your return will be routed to our processing department where it will be error-checked. If significant errors are discovered, your preparer will contact you to notify you of the errors. You will be provided with a corrected copy of your return, and you will be asked to sign a new Form 8879 which you will need to sign and return to us before we will file your return.

Step 7.  E-filing and Finalization of Return
When review of your return is completed by our Designated Consultant, your return will be electronically filed with the IRS and applicable state(s). After your return(s) are accepted by the IRS and applicable state(s), our front desk staff will contact you to notify you by phone, email and/or text message that your return has been finalized.

Step 8: Delivery of tax return & return of original documents
We will upload an electronic copy of your return to your secure portal.  Please let your tax preparer know if you want a paper copy of your return. The additional cost of a paper printout is $30.

If you delivered paper tax documents to our offices, you will be able to pick your documents up after your tax return has been electronically filed and accepted by IRS and state.  Our front desk staff will contact you via phone, e-mail and/or text message to notify you paperwork is ready for pickup. You can stop by our offices during normal business hours to pick up your documents. Any documents not picked up within 4 years will be destroyed.

Accounting services
Pacific Northwest Tax Service offers bookkeeping, accounting, and payroll services for small business. These services are offered separately from our tax preparation services and are not included in the cost of preparing your return. The hourly rate for bookkeeping and payroll is $125/hour outside of tax season. We do not do bookkeeping during tax season. Complex accounting services performed by our senior accounting staff or CPA, are billed at a rate of $325/hour. Our work will not include procedures to find defalcations or other irregularities. Accordingly, our engagement should not be relied upon to disclose errors, fraud, or other illegal acts, though it may be necessary for you to clarify some of the information you submit. We will, of course, inform you of any material errors, fraud, or other illegal acts we discover.

Unclear law
Should we encounter instances of unclear tax law, or of potential conflicts in the interpretation of the law, we will outline the reasonable courses of action and the risks and consequences of each. We will adopt, on your behalf, the reasonable alternative that you select.

Penalties for late payment of tax
You are solely responsible for making timely payment of taxes that you owe. The law imposes penalties when taxpayers underpay or make late payment of their tax liabilities (amounts owed) including:

Estimated tax penalty: If you underpay taxes during the year, you can be assessed an estimated tax penalty.
Late payment penalty: If you pay taxes after the April 15 filing deadline, you can be assessed late filing penalties, late payment penalties and interest on amounts you owe.
 
IMPORTANT: An extension of time to file does not give you more time to pay your tax. You are solely responsible for paying your tax on time. You should remit any amount you owe by the tax filling deadline with your timely filed Form 4868. You may also pay taxes owed online with the IRS and your state.

Price Schedule
We generally charge a flat fee for each form and worksheet that is included with preparation of your tax return. A time charge may apply for additional bookkeeping or consulting services. Our fee for preparing your returns will be based upon the Price Schedule posted in our offices. More information about our pricing can be found on our website at https://www.pnwtax.com/1040-individual-tax-return-pricing.

Return and retention of original documents
We will return your original records to you at the end of this engagement. You should securely store these records along with all supporting documents, canceled checks, credit card statements, etc., as these items may later be needed to prove the completeness or accuracy of your return. We will retain copies of your returns, W-2s and certain other required documents for a minimum of 4 years, after which these documents will be destroyed.

End of Engagement
Our engagement to prepare your tax returns will conclude with the delivery of the completed returns to you (if paper filing), or your signature and our subsequent submittal of your tax return (if e-filing). If you choose not to e-file your returns or are not able to e-file your returns with our office, you will be solely responsible for filing the returns with the appropriate taxing authorities. We will not mail paper returns to the government for you. Review all tax-return documents carefully before signing them. 

Identity theft alert and use of secure portal
The IRS strongly advises all taxpayers to avoid sending valuable personal information via email. Cyber-thieves routinely target tax return preparers, banks, medical offices, and other businesses that store confidential information that can be used to steal your identity. We are committed to the protection of your information and therefore maintain the following policies for security reasons:

We will not email copies of your tax return to you, and we strongly advise that you do not email your valuable information to your tax preparer.
Instead, we request that you use our SecureFilePro cloud-based portal. The portal allows you to send and receive information in a secure environment. Information on how to use the portal is found on our website at www.pnwtax.com. Click on the User Instructions link in the upper left corner of the landing page. Your tax preparer will set up Portal access for you at your request.

IRS rules require that we verfiy your identity and receive copies of income and deduction statements.  Documents that we need to see are as follows:

New clients

• State ID or Driver's license for both taxpayer and spouse.
• Copy of your most recently filed prior year returns.

New and Returning Clients

Income Statements - Please provide copies of any of the following income statements that you received for the year.  Some of these statements may need to be downloaded from the payor's website.

• Form W-2 wage statement
• Form 1099R - Retirement income statement
• Form 1099SSA - Social security income statement
• Form 1099 INT - Interest income statement
• Form 1099 DIV - Dividend income statement
• Form 1099 B - Sale of stocks or bonds statement
• Schedule K-1 (distributive share of income from a partnership, S corporation, trust, or estate)
• 1099G - Unemployment income or state refund statement
• 1099C - Cancelled debt
• 1095A - Health insurance exchange coverage
• 1099HSA - Health savings account
• 1099 anything else - any other type of 1099 document you received

Deduction Statements - Please provide copies of the following documents:

• Form 1098 - Mortgage interest statement (if your mortgage was sold or if you refinanced during the year, you may have more than one statement)
• Property tax payments - If you paid property taxes directly (not through your mortgage) we need to know the dates and amounts of all property tax payments you made
• Form 1098T - Tuition paid
• Form 1098E - Student loan interest paid
• Form 1098C - Donation of auto
• Medical - It is not necessary to provide us with copies of your receipts, however you should keep receipts and other records of your medical expenses for at least the next three years.
• Charity - It is not necessary to provide us with copies of your charitable receipts, however you should keep receipts and other records that proove your deductions for at least the next three years.

Other Documents - please review this list and provide additional documents if any apply to you:

• Purchase of Home or Other Real Estate - Settlement statement from purchase of home, rental property or other real estate.
• Refinance of Real Estate - Settlement statement from any refinance of your home or other real estate that occured during the year.
• Sale of Real Estate -
  • Settlment statement from the purchase and and subsequent refinances of your home, rental property or other real estate that you sold during the year.
  • Settlement statement from the sale of real estate.

Additional organizers, quickbooks files, or spreadsheets

You may also attach the following documents and files:

• Copies of other organziers from our website that you have completed, such as rental, self employment or foreign income or assets
• Excel spreadsheets that detail income or expense items
• Word or PDF documents that detail income or expense items

Payment of a non-refundable retainer is required at the earlier of:

1. The date you schedule your appointment, or
2. The date you deliver this tax organizer and/or other documents to us.

Please indicate if you have already paid your retainer.

The retainer is applied towards the cost of tax preparation services.