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Income Tax Preparation Checklist

This is the time of year when many of us are busy preparing and gathering the information necessary for the completion of our 2013 income tax returns. Below are several items that you should be aware of as it relates to this process.

By the second week of February, you should have received your forms W-2 (employment wages) and any 1099R (retirement income), 1099-INT, or 1099-MISC (other income) statements for 2012, as well as your social security benefits statement, if applicable. You should also begin receiving forms 1099-DIV and 1099-B for any directly-owned investments such as mutual funds.

If you own a brokerage account, you will likely find that you will not receive your consolidated brokerage tax statement until the beginning of March at the latest. To reduce the possibility of having to send amended tax statements due to late or corrected reporting by various investment companies, many brokerage firms have opted to delay mailing these consolidated statements.

Other considerations may include real estate taxes paid, mortgage interest, medical expenses, investment advisory fees, forms K-1, estimated income tax payments, charitable donations (whether by check or in-kind), etc.

The 2013 individual income tax landscape is very similar to 2012. There were minor increases to personal exemptions, standard deductions, and tax-bracket thresholds. Higher income taxpayers will notice the return of the 39.6% federal marginal tax bracket (which kicks in at $400,000/$450,000 of taxable income for individual/married taxpayers). Also single/married households with more than $200,000/$250,000 of adjusted gross income may be faced with an additional 3.8% tax on any investment income as a new Medicare Surtax which went into effect in 2013.

We encourage you to consult your tax preparer to determine if you are eligible to make a 2013 contribution to a Traditional IRA or a Roth IRA. The maximum contribution limit to either type of account for 2013 is $5,500 ($6,500 if you had turned 50 by 12/31/2013). 2013 contributions to individual retirement accounts should be made no later than April 15, 2014.

Whether you elect to self-prepare your income tax returns or hire a professional, we suggest you make all efforts to determine that you are taking advantage of any available opportunities for tax savings or tax deferral. In particular, retirement account contributions may serve the dual benefit of helping to reduce income taxes now while providing additional income during retirement.


Douglas J. Bauer, President and CEO of AllSquare Wealth, began his career in the financial services industry in 1975 and is a Certified Financial Planner (CFP®) practitioner.  His primary responsibilities include overseeing the direction of the firm, client development, and the servicing of existing client relationships.

 As part of assisting clients with their overall wealth management needs, AllSquare Wealth offers income tax preparation services for individuals, estates, trusts, and small businesses

AllSquare Wealth Management is a Federally Registered Investment Advisory Firm.
AllSquare Wealth Management, LLC is a registered investment adviser.


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