💼Profit and loss and balance sheet statements are crucial elements for starting a tax return.
📉A balance sheet is necessary if your revenue or assets exceed $250,000.
📝A depreciation breakdown list is required for depreciated items throughout the year.
💰W2s and 1099s are needed for payroll and contractor payments.
📅State taxes paid should be documented for deductions on federal taxes.
What is a balance sheet?
—A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholder equity at a specific period.
Why do I need a depreciation breakdown list?
—A depreciation breakdown list provides details of items that have been depreciated throughout the year, including purchase dates, amounts, and descriptions.
What are W2s and 1099s?
—W2s are forms used to report an employee's wages and taxes withheld, while 1099s are used to report payments made to contractors.
Why should I document state taxes paid?
—Documenting state taxes paid is important for federal tax deductions, as they may not be deductible on the state level.
Do I need a balance sheet if my revenue is under $250,000?
—No, a balance sheet is only necessary if your revenue or assets exceed $250,000.
00:00To start your tax return, you need several key elements.
00:13Profit and loss and balance sheet statements are crucial documents.
00:36A balance sheet is necessary if your revenue or assets exceed $250,000.
01:15A depreciation breakdown list provides details of depreciated items.
01:46W2s and 1099s are required for payroll and contractor payments.
02:00Document state taxes paid for federal tax deductions.
