CROWELL TAX & BUSINESS SERVICES, LLC 2019 Tax Preparation ... · General Engagement Letter for Individual Tax Return Preparation This letter is to inform you, the taxpayer, of the

CROWELL TAX & BUSINESS SERVICES, LLC

2019 Tax Preparation Fees Schedule for Family Daycare Providers $250 Federal & State Return Preparation for MN, IA, SD Residents (includes daycare business and all personal forms)*

All Other States: Contact Alaina for a Quote if you are a New Client $15 MN Property Tax Return Preparation $25 Additional State Tax Return Preparation $10 Dependent Tax Return Preparation $25 Additional Level 1 Business Forms (MLM/Network Marketing, Etc) $75-$125 Additional Level 2 Business Forms $30 Sale of a Home Used for Business $15 Sale of a Vehicle Used for Business $30 Depreciation Recapture $20 Electronic copy of your tax returns and supporting documentation saved on thumb drive in PDF format $30 Extension of Time to File Federal Tax Return $25 Discount for our Monthly Bookkeeping Clients *Fees will increase for any additional special tax situations. Will be discussed ahead of time. Contact me with questions!

Select Additional Services ____ I want my MN Property Tax Return prepared for a $15 fee. If you haven't received your 2020 Property Tax Statement, submit when you receive it and your return will be prepared at a later time. ____ I want an electronic copy of my tax returns and all supporting documentation on a thumb drive in PDF format for a $20 fee. ____ I want to sign up for Monthly Bookkeeping Services for $35 per month. Starting Month: ______________________

Checklist: We Cannot Begin Preparing Your Tax Returns Without These Items

____ Complete copy of 2018 Federal & State Tax Returns (new clients only) ____ Copy of Driver's Licenses/State ID's for Taxpayer & Spouse (new clients only) ____ Copy of Social Security Cards for Dependents (new clients only) ____ All 2019 Tax Forms you received or are expecting to receive ____ Payment Authorization (below) ____ Engagement Letter ____ 2019 Client Data Sheet ____ 2019 Income Tax Questionnaire ____ 2019 Due Diligence Questionnaire (if claiming any dependents and/or college credits) ____ 2019 Daycare Business Questionnaire ____ 2019 Business Use of Vehicle Form

Payment Authorization I authorize Crowell Tax & Business Services, LLC to initiate either an electronic debit or to create and process a demand draft against my bank account or debit/credit card according to the terms outlined below. I acknowledge that the origination of ACH transactions to my account must comply with the provision of United States law. I will be responsible for any NSF or returned item fees at a rate of $30 per occurrence, or actual cost if greater. Your payment will be run before tax preparation begins. Funds should be available the day you submit your returns for preparation.

Payment Options (Select One - Please Print Clearly)

_____Bank Account

Routing Number: ________________________________ Account Number: _________________________________

Bank Account Type: _____Checking _____Savings _____Business Checking _____Credit Card / Debit Card

Card Number: __________________________________________

Expiration Date: _____________ Security Code: ________

Customer Signature _____________________________________________ Date ___________________

Crowell Tax & Business Services, LLC 2019 Income Tax Preparation: What to Expect

Thank you for choosing us to serve you this tax season! We are excited to work with you.

Congress made some significant changes to our tax laws in 2018 and they are also in effect for 2019. There is an entirely new Form 1040, new schedules, and new additional verification needed to claim your dependents for some of the most basic tax credits. If you previously itemized your personal deductions, you may no longer qualify to do so since the Standard Deduction increased significantly. Income tax rates have decreased, child tax credit has increased. Personal exemptions no longer exist and some of you with multiple dependents will be impacted. Qualified small businesses will be allowed to reduce their taxable federal income by 20%. Those are just some of the basic changes that many of you will experience this year.

Enclosed is a custom tax packet that was created to support your recordkeeping method for the year and will guide you through collecting all of the details you should be providing about your business. There are also various required forms and questionnaires included for you to complete so we can prepare accurate tax returns on your behalf. Be sure to also submit all tax forms you received for 2019.

Submitting Your Tax Packet You can submit your tax packet for preparation either via the mail or by uploading to our secure online portal. Turnaround time is 7-10 business days from the day your complete tax packet is received. Returns are prepared in the order they are received. Failure to include fully completed tax packets or tax documents, or delay in responding to questions will result in a delay of timely completing your returns.

Submit Via Mail

Crowell Tax & Business Services 612 N. Sverdrup Ave Jackson, MN 56143

Upload to Online Portal When submitting to the portal, upload all of your documents in ONE message. Do not upload individual files in separate messages.

Existing Clients: Use Last Year's Login Info to access the portal through our website at www.crowelltaxes.com

New Clients: Request a portal account by sending your email address to [email protected]

The Process 1. Submit your Tax Packet via Mail or Portal

2. When your Tax Packet reaches the top of the list, your packet will be reviewed and payment for your returns will be ran.

3. Alaina will contact you with questions, items that need clarified, if information is missing, and/or if she thinks any expenses were overlooked.

4. Once your returns are complete, you will be provided with the details, a copy of the returns to review, and an E-File Authorization Form. If you have questions, Alaina is available via email or by phone appointment.

5. You and your spouse, if applicable, will print and sign the E-File Authorization Form, and upload the signed copy to the portal.

6. Once we receive the uploaded signed copy of the E-File Authorization Form in the portal, we will file your returns.

7. Final copies of your returns will be provided to you. If you mailed your tax packet, all of your documents and hard copies of your returns will be mailed back to you. If you uploaded your tax packet to the portal, hard copies of your returns will be uploaded to the portal for you to download. Please save a copy to a safe location within 10 business days. The portal is emptied on a regular basis.

Tax Packets Are Due No Later Than March 31, 2020 Packets Received After This Date Will Likely Need an Extension

General Engagement Letter for Individual Tax Return PreparationThis letter is to inform you, the taxpayer, of the services we will provide you, and the responsibilities you have for preparation of your tax return.

Tax Return Preparation• We will prepare your 2019 federal and state tax returns based on information you provide. Services for

preparation of your return do not include auditing or verification of information provided by you.• This engagement does not include any audit or examination of your books or records. In the event

your return is audited, you will be responsible for verifying the items reported.• The tax return preparation fee does not include bookkeeping. • Fees charged for tax return preparation do not include audit representation or preparing materials to

respond to correspondence from taxing authorities. • Preparation fees do cover limited assistance and consultation during the year. • The engagement to prepare your 2019 tax returns terminates upon delivery of your completed returns

and original documents to you. Please store your supporting documents and copies of your tax returns in a secure place for at least seven years. You may be assessed a fee if you request a copy in the future.

Taxpayer Responsibilities• You agree to provide us all income and deductible expense information. If you receive additional

information after we begin working on your return, you will contact us immediately to ensure your completed tax returns contain all relevant information.

• You affirm that all expenses or other deduction amounts are accurate and that you have all required supporting written records. In some cases, we will ask to review your documentation.

• You must be able to provide written records of all items included on your return if audited by either the IRS or state tax authority. We can provide guidance concerning what evidence is acceptable.

• You must review the return carefully before signing to make sure the information is correct. • Fees must be paid before your tax return is delivered to you or filed for you. If you terminate this

engagement before completion, you agree to pay a fee for work completed. A retainer is required for preparation of late returns.

Signatures. By signing below, you acknowledge that you have read, understand, and accept your obliga-tions and responsibilities and that you understand our responsibilities in preparing your tax returns as explained above. For a joint return, both taxpayers must sign.

Taxpayer Spouse Date

Privacy Policy. The nature of our work requires us to collect certain nonpublic personal information about you from various sources. We collect financial and personal information from applications, work-sheets, reporting statements, and other forms, as well as interviews and conversations with our clients and affiliates. We may also review banking and credit card information about our clients in the perfor-mance of receipt of payment. Under our policy, all information we obtain about you will be provided by you or obtained with your permission.

Our firm has procedures and policies in place to protect your confidential information. We restrict ac-cess to your confidential information to those within our firm who need to know in order to provide you with services. We will not disclose your personal information to any third party without your express permission, except where required by law. We maintain physical, electronic, and procedural safeguards in compliance with federal regulations that protect your personal information from unauthorized ac-cess. Please contact us with any questions regarding our privacy policy.

Crowell Tax & Business Services, LLC612 N. Sverdrup AveJackson, MN 56143

2019 Client Data Sheet New Clients Must Include copy of Driver's License & Social Security Card for Taxpayer & Spouse

Taxpayer's Info Spouse's Info

Last Name

Last Name

First Name

First Name

Middle Initial

Middle Initial

Social Security Number

Social Security Number

Date of Birth

Date of Birth

Age as of 12/31/19

Age as of 12/31/19

Occupation

Occupation

Cell Phone

Cell Phone

Email for Portal Account Home Phone

Mailing Address, City, State, Zip

Dependent Information: New Clients Only Must Include a Copy of the Social Security Card for all Dependents Dependent 1

Full Legal Name (First, Middle Initial, Last: ______________________________________________________________________

Social Security Number: ____________________ Date of Birth: __________________ Age as of 12/31/19: _________

Gender: _____________ Grade in School: _________ Number of Months Dependent Lived in Home in 2019: ________

__ Yes __ No Are you claiming this dependent for tax year 2019?

__ Yes __ No Do you anticipate a different taxpayer will try to claim this dependent for tax year 2019?

Dependent 2






Dependent 3






Dependent 4






2019 Income Tax Questionnaire Taxpayer Name(s): This form must be completed in full. "You" refers to both taxpayer and spouse- enter "?" if unsure about a question.

Direct Deposit Information for Refunds If you are due a refund & would like it direct deposited, provide information below. I want my refunds via paper check

Account Type: ___ Checking ___Savings Name of Bank: _______________________________________________

Routing Number: ______________________________ Account Number: ____________________________________________

2019 Estimated Taxes Paid Complete if you made estimated tax payments in 2019 or had any/all of your 2018 refund applied to your 2019 tax bill

Installment Date Paid Federal Date Paid State

First $ $

Second $ $

Third $ $

Fourth $ $

Amount applied from 2018? $ $

Total $ $

GEN

ERA

L Q

UES

TIO

NS

Yes No Have you received any notice from the IRS or state revenue department within the past year?

Yes No Did you have health insurance for you, your spouse, and all dependents for the entire year?

Yes No Did you purchase health insurance through a public exchange?

Yes No Did you pay or receive alimony in 2019? Amount Paid/Received: $

Yes No Are you a member of the military?

Yes No Were there any deaths in the family in 2019?

Yes No Were you divorced or separated in 2019?

Yes No Are either you or your spouse legally blind?

CH

ILD

REN

& E

DU

CA

TIO

N

Yes No Were any children born or adopted in 2019?

Yes No Did any of your children have income above $1,100 for the year?

Yes No Do any of your children have a disability?

Yes No Did you pay tuition related education expenses for yourself, your spouse, or dependents to attend college? If yes, provide Form 1098-T and the "Billing Account Activity Statement" showing detailed expenses and payments made to the college account. Both items are required to determine if you qualify for a credit.

Yes No Did you pay interest on a student loan in 2019? If yes, provide form 1098-E showing interest paid.

Yes No Did you pay for child or dependent care (daycare or preschool) so you could work or go to school? If yes Name of provider: Provider’s Tax ID#: Address: Amount paid for each qualifying dependent:

INV

ESTM

ENTS

Yes No Did you, or will you, contribute money to an IRA for 2019? If yes, provide details below Traditional IRA Roth IRA SEP IRA SIMPLE IRA Other: __________ Taxpayer $ $ $ $ $ Spouse $ $ $ $ $

Yes No Did you roll over any amounts from a retirement account in 2019? If yes, provide details with your packet.

Yes No Did you, or will you contribute money to a HSA for 2019? Amount Contributed $

Yes No Did you withdraw any funds from any type of retirement account in 2018? If yes, provide Form 1099-R

HO

ME

Yes No Did you purchase or sell a main home during the year? If yes, provide closing statement.

Yes No Did you previously claim the First Time Homebuyer Credit on prior year return? If yes, provide date of credit, amounts and years repaid to date.

Yes No Did you make any new energy efficient improvements to your home? If yes, provide details.

Yes No Did you move in 2019? Provide previous address below.

What Tax Forms Are You Providing Us for 2019? This Must Be Completed Please list all tax forms and the number of each form you are sending in your tax packet this year Form How Many? Form How Many?

W-2 (wages and tax statement) 1099-R (pensions, annuities, retirement, etc)

1099-MISC (misc income) 1099-DIV (dividends, distributions)

1099-INT (interest income) 1099-B (broker, barter exchanges)

1099-SA (HSA, MSA) 1099-C (cancellation of debt)

1098 (mortgage interest) SSA-1099 (social security benefits)

1098-T (tuition statement) 1098-E (student loan interest)

1095-A,B,orC (health insurance) Schedule K-1

Other: Other:

Other: Other:

Itemized Deductions- Optional Deductions must now exceed $12,200 for Single, $24,400 for Married Filing Jointly, or $18,350 for Head of Household to be a benefit. Do not provide receipts or documentation unless we request it. Medical Expenses: Must exceed 10% of income to be a benefit. Include costs for dependents. Do not include expenses reimbursed by insurance.

Casualty Theft Losses: If you suffered any sudden, unexpected damage or loss of property, or theft in a federally declared disaster area, provide details on a separate sheet.

Dentists $ Hospitals $ Miscellaneous Deductions: These are no longer deductible on the federal return. They may still be deductible on your state return. For use of home, auto mileage, or other job-related expenses, provide on a separate sheet. Indicate if any expenses reimbursed by your employer.

Doctors $ Insurance $ Equipment $ Prescriptions $ Eyeglasses $ Other $ Medical Miles @ 20¢ Dues $ Subscriptions $

Taxes Paid: Do not include taxes paid for business or rental use. Supplies $ Job Education $

Real Estate Tax - Residence $ Tax Prep Fees $ Job Seeking $

Real Estate Tax - Other $ Tools $ Legal Fees $

Personal Property Taxes $ Uniforms $ Licenses $

Balance paid in 2019 from prior year state returns. Do not include interest or penalties.

$ Union Dues $ Safety Equip $

Did you keep receipts for sales tax paid during 2019? Yes No Did you purchase a car, plane, boat, or home in 2019? Yes No Sales tax paid $ Purchase Paid $ Date

Other Deductions:

Gambling Losses $ Federal Estate Tax on IRD

$

Impairment Related Expenses

$ Loss from box 2, K1, Form 1065B

$

Interest Paid: Provide all Forms 1098 or lender information

Charitable Contributions: If over $500 in noncash charitable contributions, provide details of contributions. Rules require that the taxpayer retain documentation for all cash contributions.

Cash: List all donations made by cash and the qualifying organization it was made to in 2019.

Non-Cash: List the fair market value of the property you donated and the qualifying organization it was donated to. If a total of $500 or more was made in 2019, you need to provide a detailed list of all items donated in 2019 on a separate sheet.

Charitable Mileage @ 14¢ per mile

Signatures By signing below, you certify that you have included all tax related information for the year and that all information provided is true and accurate. For a joint return, both taxpayers must sign.

Taxpayer Spouse Date

2019 Due Diligence Questionnaire Crowell Tax & Business Services, LLC If you are not claiming any dependents and/or you did not have any college related expenses for 2019, you can skip this questionnaire. Under the new tax laws for 2018, the IRS expanded the due diligence requirements for paid tax preparers to further verify that taxpayers meet the requirements to claim certain tax credits and filing statuses. Previously, this level of verification was reserved for just a few tax credits. Now, this level of verification is required for even the most common tax credits, such as claiming your dependent children, and is required for 2019 as well. The IRS requires paid tax preparers to not only ask specific questions, but to also request specific documentation from you to validate and verify your eligibility to these credits. My failure to participate in these requirements will set me up for large penalties and could be cause for me to lose my license. Abbreviations used on this Questionnaire: CTC = Child Tax Credit ACTC = Additional Child Tax Credit EITC = Earned Income Tax Credit (Low Income Households) AOTC = American Opportunity Tax Credit (College Credit)

Please answer all questions honestly and to the best of your knowledge. Not all questions will apply to all taxpayers. If they do not apply to you, please answer them as NA (not applicable) so we know that you read the question and didn’t just miss it.

FOR NEW CLIENTS with Dependents: Please remember to submit copies of social security cards, birth certificates, and proof of residency (possibly school records or medical records showing the dependents name and YOUR address).

FOR TAXPAYERS CLAIMING COLLEGE TAX CREDITS: Please remember to submit copies of the FORM-1098T that you received from the college AND a copy of the Bursar’s statement (or account activity statement) from the college showing the Spring and/or Fall semester charges and payments. The credit applies to all payments made in cash or via student loans to tuition, fees, and related expenses.

If you have any questions, please do not hesitate to contact our office. We will be glad to assist you. If you qualify for the Earned Income Credit, there will be an additional packet for you to complete.

Section 1: To be Completed by All Taxpayers with Dependents 1. Are you married?________________________________________________________________________________________________ 2. Have you ever been disallowed the EITC/AOTC/CTC? If so, when?_______________________________________________________ 3. Did you live in the United States and where?___________________________________________________________________________ 4. If you are a single parent, where’s the other parent(s) of your child/children?_________________________________________________ 5. What is the name of the other parent(s)?______________________________________________________________________________ 6. Why is the other parent of the child/children not claiming the child?________________________________________________________ 7. Explain why the dependent(s) have different last names than the taxpayer___________________________________________________ 8. If you are separated/divorced, when did you last live in the same home?_____________________________________________________ 9. Do you have joint custody of your child? _____________________________________________________________________________ a. How long did the child live in your home during this tax year?___________________________________________________ b. How long did your child/children live in the other parent’s home during this tax year?_________________________________ c. How much income did the other parent have during this tax year?_________________________________________________ d. Do you have a signed Form 8332?__________________________________________________________________________ 10. Did anyone else live in the home that provides financial support for your child/dependent(s)?__________________________________ a. If yes, who lives there and how much do they pay________________________________________________________________ 11. Does the taxpayer have full custody of their dependent(s)?________________________________________________________________ 12. Is this your biological dependent(s) ?_________________________________________________________________________________ 13. How old were you when your oldest child was born that is listed on this return?_________________________________________________

a. If the taxpayer was under the age of 18, explain circumstances and who/how the child was cared for until the taxpayer was old enough to support and care for her own child_________________________________________________________________ 14. How many months did the dependent(s) live in your home during the tax year ?________________________________________________ 15. Can anyone else claim your dependent(s) as a dependent on their tax return?______________________________________________ 16. Is your dependent married?__________________________________________________________________________________________ 17. If you live alone, who babysits while you work (for children 12 & younger)? Name:____________________________________________ 18. Do you receive any other type of supplemental, non taxable income such as child support, welfare benefits, social security, etc? ____________________________________________________________________________________________________________ a. If so, how much and what kind?______________________________________________________________________________

Section 2: To be Completed if Your Dependent is NOT Your Biological Child 19. If this is not your biological child, what is your relationship to the dependent?___________________________________________________ 20. Did the dependent live in your home for more than 6 months?________________________________________________________________ 21. Do you have custody? ______________________ If so, through what court/agency?___________________________________________ 22. Who are the biological parents?_____________________________________________________________________________________ 23. Where do the biological parents live?________________________________________________________________________________ 24. What were the circumstances leading to the dependent(s) being placed in your home? __________________________________________ _______________________________________________________________________________________________________________ 25. Do you receive any financial aid for this child such as WIC, Medicaid, SNAP, listed on your health insurance policy, etc?__________ If yes, which ones?________________________________________________________________________________________________ 26. Are you listed as the guardian for this dependent(s) on school records, medical records, daycare records, or place of worship records?_________________________________________________________________________________________________________

Section 3: To be Completed if You or Your Dependent had College Expenses

List All Household Members Who Had College Expenses ____________________________________________________________________ 27. Which college did the student attend ?_______________________________________________________________________________ 28. Did student attend at least half time?_________________________ Degree Seeking? ________________________________________ 29. Did this student receive a tuition statement from the school?_____________ Other Books/Materials $___________________________ 30. Did this student work while attending school?________________ If so, how much did they earn?______________________________ 31. How many tax years have you claimed the AOTC?__________________ Drug Related Felonies?______________________________ PLEASE PROVIDE BURSAR STATEMENT OF ACCOUNT HISTORY AND COPY OF 1098T FORM FROM THE COLLEGE

Signatures

By signing this document, I certify that I answered the questions truthfully and to the best of my knowledge.

Taxpayer Date

Spouse Date

You are receiving this handout because you qualified for one or more of the following tax credits: Child Tax Credit, Advanced Child Tax Credit, Earned Income Tax Credit, and or the American Opportunity Credit. If you are audited by the IRS, you will need to be able to provide proof of your eligibility for the credits. We have outlined for you a list of documents and information you may need to keep with your tax records or be able to produce as proof of your eligibility. For Filing Status 1. Valid Social Security Cards for you, your spouse, and or your dependents. 2. Birth Certificates, Marriage Certificates, and/or Death Certificates to prove your filing status or to prove your relationship to your dependents. 3. Divorce Decree, Separation Agreement, or Decree of Maintenance to support your filing status. 4. If you lived apart from your spouse – Lease Agreement, Utility Bills, a Statement from Social Services, a Statement from a Clergy member, or other documentation to show that you lived apart for the last 6 months of the year. 5. For Head of Household Status - Household bills such as utilities, property tax, mortgage statements, rental agreements, or other household bills to show you maintained more than half the cost of keeping up the home for the entire year. To Prove Eligibility To Claim 1. Current custody order. 2. Parenting plan. 3. A signed copy of Form 8332, release of Claim to Exemption for Child of Divorced or Separated Parents to prove your ability to claim your dependents. 4. A signed copy of Form 8332, release of Claim to Exemption for Child of Divorced or Separated Parents to prove you revoked the noncustodial parent’s ability to claim your dependents. 5. School records, medical records, social service records, daycare records, or a letter (from the school, social service agency, healthcare provider, your landlord, a tribal official, a shelter, or a place of worship) to prove that the child lived with you. Letters must be on official letterhead and must specify the child’s name, the parent or guardian’s name, the child’s address, and the dates during the year that the child lived at the address. 6. Placement documents from an adoption agency, foster care agency, or the courts showing the child was placed in your home for foster care or adoption. 7. A letter from a physician or healthcare provider stating the permanent and total disability of your dependent. 8. Proof that you provided more than half of the child’s support: household bills, statement from child support agency, statement of government benefits you received, rental agreements, daycare receipts, medical payments. 9. For dependents age 18 through 23 – school records showing that they were considered a full time student for 5 months of the tax year. Records must show the child’s name and specific dates attended. To Prove Eligibility for Education Credits 1. Form 1098-T 2. Statement of amounts paid to school 3. Receipts and check duplicates showing amounts paid for tuition, fees, books, and supplies 4. Course syllabus 5. Course Transcripts 6. Documentation of any Employer provided education assistance 7. Proof of withdrawals from educational savings accounts 8. Proof of educational assistance received from veteran’s benefits 9. Proof of any other nontaxable educational assistance received For Self-Employed Persons Records of your Income and Expenses including but not limited to: 1. Bank Statements and Business Credit Card Statements 2. Invoices 3. Receipts 4. Mileage Logs 5. Vehicle Maintenance Receipts 6. Canceled Checks 7. Business Loan Agreements 8. Business Ledgers 9. Business License 10. Excise and/or Employment Tax Returns if Applicable

CROWELL TAX & BUSINESS SERVICES, LLC 2019 State K12 Education Subtraction/Credit Worksheet (not available in all states)

Form must be fully filled out to be considered for Credits/Subtractions if available in your state. You are required to keep receipts in case of an audit. In Minnesota, this is only available for your dependents in Kindergarten through 12th Grade.

Name: _________________________________________ Grade in School (as of 12/31/19): ____________________ Type of School: ____ Public ____ Private ____ Home School




Required School Materials Textbooks, paper, pens, pencils, notebooks, folders, etc. Do not include nonacademic items such as back packs, facial tissue, or book covers.

Child's Name Amount Paid for Required School Materials

Individual Instruction by Qualified Instructor Fees for individual instruction by a qualified instructor taught outside of the regular school day or year such as tutoring or music lessons.

Child's Name Instructor Type of Class Cost

Enrichment or Academic Classes Fees for enrichment or academic classes taken outside of the regular school day or year. Do not include private school tuition.

Child's Name Type of Class Paid To Cost

Instrument Expenses Fees for purchases or rentals of musical instruments used during the regular school day or year. Do not include private school tuition.

Child's Name Type of Instrument Paid To Cost

Transportation Costs Transportation costs paid to others for the regular school day.

Child's Name Paid To Cost

Private School Tuition Child's Name School Tuition Cost

Personal Computer Hardware & Educational Software $_______________ Total Cost Paid for in 2019

Attach Additional Sheets If You Have Additional Qualifying Expenses To Consider

Crowell Tax & Business Services, LLC

2019 Daycare Business Questionnaire

Taxpayer’s Name:________________________________________________ Tax Year: _________________

Business Address: __________________________________________________________________________________

EIN or SSN: _____________________ EXACT Daycare Start Date (Month, Day, and Year): _____________________

How many months did you operate your daycare in 2019? ____ All 12 Months or From _______ to _______

Additional Documents to Include (these must be provided with your tax packet)

___2018 Depreciation Schedule (required for new clients only) ___1099's Received for income sources such as CCAP, Grants, Scholarships, etc ___Annual Food Program Report (if applicable) ___Property Tax Statement ___1098 Mortgage Interest Statement

Hours Worked

In 2019, how many hours did you use your home for business purposes? Include hours children were present and hours you spent working in your home before and after children were present.

Space Use Provide details of what space in your home is being used for your daycare business. 1 (exclusive use), 2 (shared use), and 3 (never used) must equal your TOTAL. To qualify as an exclusive use space, your family must never use this space outside of daycare hours. Most providers use all of their home in one way or another for daycare use.

What is the total interior square footage of entire home, including garage?

1. From total above, what is the square footage of rooms exclusively used for childcare?

2. From total above, what is the square footage of rooms used for childcare and personal use (shared use)?

3. From total above, what is the square footage of any rooms never used for childcare?

Unreimbursed Meals Served in 2019 List all meals you served that were not reimbursed by the food program.

Breakfast ($1.31)

Lunch & Dinners ($2.46)

Snacks ($.73)

Self-Employed Health Insurance Premiums

$ If applicable, provide total of premiums paid to cover you and your family. Policy must be in name of self-employed individual or the business.

Wages Paid to Your Dependent Children Under 18 $ Name of Child: $ Name of Child:

$ Name of Child: $ Name of Child:

Other Recordkeeping

Seasoned Provider

Major Purchases List all purchases costing more than $200 here. Include taxes, delivery, shipping, installation fees, etc in the total. Make sure these expenses are NOT included in your daycare expense organizer. Attach additional sheets if needed. I may need to see receipts to verify.

Date Purchased

Date Placed in Service

Cost Business Use % Or Time/Space%

Item Description

Improvements For 2019 detail all home improvement and remodeling projects individually, along with total cost of each project. These expenses should not be included in your Daycare Expense Organizer. Include taxes, delivery, shipping, installation fees, etc in the total. Attach additional sheets if needed. I may need to see receipts to verify.

Date Purchased

Date Placed in Service

Cost Business Use % Or Time/Space%

Description

I hereby certify that I have included all income received in conducting my business including all Form(s)-1099 income, cash, checks, credit card/debit card income received. I have adequate written receipts, records, paid invoices, cancelled checks, books, or other methods to substantiate all expenses claimed. Crowell Tax & Business Services has explained all of the record keeping requirements for those expenses and also the consequences for failing to keep the records including full or partial disallowance of the expenses which will result in additional taxes, interest, and penalties. Signature __________________________________________ Date ___________________________________

NOTES:

CLIENT _______________________________________ TAX YEAR ________________

Everyone records their expenses a little differently. These are suggested categories and you do not need to provide totals for each category. If you use another category than listed, there is a section to list those. Please provide grand totals of your 100% business expenses and Shared business expenses by category. Do not reduce your Shared business expenses by your time/space percentage as we will do this for you. In the expenses below, do not include any large purchases over $200 nor any home improvements/remodels. These expenses must be looked at individually to accurately determine their individual tax treatment.

INCOME

Childcare Clients

Food Program Provide End of Year Statement

County/CCAP Provide Form 1099

Other

BUSINESS EXPENSES 100% Total Shared Total 100% Total Shared Total

Activities

Household Items

Advertising

Legal/Professional Fees

Arts & Crafts

Liability Insurance

Business Meals & Entertainment

Licensing & Training

Cell Phone

Office Supplies

Cleaning Supplies

Supplies

Curriculum Toys

Gifts

Travel & Lodging

Use this area to list any other expense categories you use to track your business expenses. Indicated if expenses are shared expenses or 100% business expenses. Add additional sheets of paper if necessary.

HOME EXPENSES 100% Total Shared Total 100% Total Shared Total

Cable TV/Streaming

Property Insurance

Internet

Property Taxes

Second Phone Line

Repairs & Maintenance

Mortgage Interest Utilities (Gas, Elec, Water,

Sewer, Recycling, Garbage)

Outdoor Expenses

Other:

Business Use Of Personal Vehicle Worksheet

FOR STANDARD MILEAGE RATE TAXPAYERS

Fill out a separate worksheet for EACH personal vehicle you use in your business.

Explanation of Business Use: _______________________________________________________________ License Plate No:__________________

Year and Make of Vehicle: __________________________________ Date Purchased & Original Cost: ____________________________________

If you sold this vehicle in 2019, provide date and sales price: ______________________________________________________________________

___YES ___NO Do/Did you lease this vehicle?

___YES ___NO Do you (or your spouse) have another vehicle available for personal use?

___YES ___NO Was your vehicle available for personal use during off-duty hours?

___YES ___NO Do you have sufficient evidence to justify the business miles?

___YES ___NO If Yes, can you provide, or will you be able to provide a mileage log? If you do not have sufficient evidence

to justify the business miles, we cannot use any Business Use of Mileage on your Tax Return.

MILEAGE DETAILS

Odometer Reading on 1/1/2019 Odometer Reading on 12/31/2019

Total Miles on this Vehicle during 2019 Total Business Miles on this Vehicle

Total cost for Business Tolls & Parking Expenses in 2019

Total amount of interest paid on any loans secured by this vehicle in 2019

Total amount of vehicle registration tax paid for this vehicle in 2019

Total of any reimbursement you received for the Business Use of your personal vehicle in 2019

I hereby certify that I have the required evidence (preferably a written log book) to substantiate the business use or mileage claimed. I have read the disclosure requirements on the bottom of this worksheet titled Understanding the Rules of Car & Truck Expenses.

Signature __________________________________________ Date ___________________________________

UNDERSTANDING THE RULES OF CAR & TRUCK EXPENSES If you use your vehicle for business purposes, you may be able to deduct vehicle expenses. You generally can use one of two methods to figure your vehicle expenses - ACTUAL or the STANDARD MILEAGE RATE. Whether you use actual or the standard mileage rate, you must keep records to show when you started using your vehicle for business along with your cost or other basis of your vehicle. Your records must also show the BUSINESS miles and the TOTAL miles you drove your vehicle during the year. Your mileage log should indicate where you went, who you saw and your business purpose along with the number of miles traveled. If you use your vehicle for both business and personal purposes, your expenses will be divided between business and personal use.

If you are self-employed and have an “office-in-the-home”, you are allowed to take the mileage from your home for any business miles. If you do not have an “office-in-the-home”, you cannot take the mileage from your home to the first business stop or from your last business stop to home. These are considered commuting miles and are not deductible.

Hauling tools or instruments in your vehicle while commuting to and from work DOES NOT make your commuting costs deductible. The use of your vehicle to display material that advertises your business DOES NOT change the use to business, nor does making business calls on your vehicle phone while commuting to work. Fines for traffic violations are also not deductible.

If you are leasing a vehicle that you use in your business, you can deduct the part of the lease payment that is for the business use of the vehicle. You cannot deduct any payments you make to “buy” a vehicle even if they are called lease payments. You can also choose the standard mileage rate for leased vehicles instead of actual expenses.

If you deduct ACTUAL EXPENSES, you must keep records of the costs of operating the vehicle as well as your mileage. Interest on vehicle loans is NOT deductible if you are an EMPLOYEE. This interest is considered personal interest and is not deductible. By choosing to deduct Actual Expenses and depreciate your vehicle, it reduces your cost of the vehicle. When you sell your vehicle, you will need to report the sale on your tax return. You may show a profit on the sale, causing a taxable event. By trading in your vehicle, the cost basis in your new vehicle will be reduced by the depreciation taken on the old vehicle. One rule the IRS never forgets - If you receive a benefit today, you will pay for it later! The

STANDARD MILEAGE RATE is the most commonly used method. This option requires less paperwork and recordkeeping than the actual method. If you want to use the standard mileage rate, you must choose to use it in the first year that you place your vehicle in service. The standard rate assumes that all of your vehicle expenses are included in the rate allowed. Included in this rate is also an allowance for depreciation. In addition to the standard rate, you can deduct any business-related parking fees and tolls. Self-employed persons are also allowed interest paid on their loan. Parking fees at your place of employment and commuting tolls are not deductible.

Tax Year 2019 CLIENT NAME