You need bring all the income statements that you may have, W2 form from your job, form 1099misc, yearend statement of interest earned from the bank and etc…
Medical expense, health insurance, property tax and state tax, mortgage interest, charity contribution, and miscellaneous expenses on your job are deductible. However, the total deduction has to exceed the standard deduction for you to benefit from this itemized deduction.
There are some dependency tests beside the support, such as his income, age, residence, and relationship to qualify someone as your dependent. Bring the question up to the tax preparer to decide the claim. You will need the dependent’s social security number and date of birth if he qualifies.
If you do not have mortgage interest and many large deductible items, you can count number of heads in your household that you can claim on income tax return. This number is your exemption number.
There are many other factors beside the job or salary to decide different refund amounts. For example, his tax withholding, his children and their ages, his expenses, his eligible credits and so on can make a big different.
You need have a list of stocks sold throughout the year. It’s best to present it on an Excel spreadsheet, with date bought, date sold, sale price and purchase price. It’s very helpful to the tax preparer if you separate the long term stocks which were held over 12 months. The long term gain is taxed at a cap lower than tax rate for high income individuals.
Basically, any expense incurred to earn the income is deductible. Some examples are advertise, car and truck expense, travel, office rent, labor cost, supplies, repair and maintenance, tax and license, mortgage interest and so on…
The determination is complex, but is based on whether the person for whom the services are performed has the right to control how the person performs the services. It is not based merely on how the person is paid, how often the person is paid, or whether the person works part-time or full-time.
There are three basic categories of factors that are relevant to determining worker classifications:
- Behavioral control
- Financial control and
- Relationship of the parties