Golden Rules
Never forget these — they protect the client, the return, and you.
Amounts you give clients are ALWAYS after our cost of service. NEVER FORGET!
If a 1095-A is presented, the 8962 MUST be added or the IRS rejects the return.
The 'Dependent' checkbox means the taxpayer can be claimed by someone else — NOT how many people they are claiming.
Only expense what the client has proof of on the Schedule C.
Preparer notes protect both you and the taxpayer — always document credits and supporting documents.
Always ask for referrals before the client leaves.
The 16-Step Return Workflow
Follow these steps in order for every return. Click a step to expand the details.
Tax Preparation Forms Cheat Sheet
Every form you will encounter, what it means, and when to use it.
Basic summary of the taxpayer's return and where you will find the AGI (Adjusted Gross Income) amount.
Income tax return for single and joint filers with no dependents.
Enter wages in Box 1 and Federal Tax Withheld in Box 2; the rest prefills automatically.
Self-employment / miscellaneous income. Link to a Schedule C.
Typically used for Lyft drivers and gig platforms. Link to a Schedule C.
Distributions from pensions, annuities, retirement plans, and IRAs.
Interest income from IRAs, stocks, and bonds.
Dividends and distributions — e.g., IRAs and 401(k)s.
Mortgage interest payments.
Student loan interest payments.
College tuition statement. The credit can only be claimed for 4 years — always ask if they have claimed it before.
Education/college credits: the American Opportunity Tax Credit and Lifetime Learning Credits.
Child Tax Credit for qualifying children.
Normally only get this credit if the person makes more than $25,000.
Credit for IRAs and 401(k)s. Use this form if lines 12, 13, and 14 are filled in on the W-2.
Medical and dental expenses, charity (including the value of donated items), home repairs, and mortgage interest payments. For W-2 workers only!
For small business owners and self-employed 1099 filers. Only expense what the client has proof of.
Marketplace coverage. This gets attached to the 8962 form — the return is rejected without it.
Health insurance coverage form. Also serves as proof of residency for the household.
Employer-provided health insurance form.
Attached to the 1095-A. Box 2 is only for full 12-month coverage; otherwise check box 3 and fill in the correct months.
MUST be completed before running the Verify tab. Documents due diligence for credits claimed.
The e-file signature authorization — always #5 on the bank application.
Power of Attorney form.
Tax Information Authorization form.