Tax Season Preparedness

Tax PreparednessTax season is here and many adult children are asking themselves if their parents have all the documents at hand to prepare their taxes.  If they live in a care facility, we recommend talking with a tax expert as sometimes some or even all of the cost of assisted living can be claimed as a medical deduction. Below is a checklist of paperwork needed for taxes in addition to other important information someone else might need to have access to in order to help manage a loved one’s affairs.

  • Complete list of your parent’s assets, including their savings, checking, money market accounts, stocks, bonds, pension plans and retirement accounts.
  • Copies of state and federal returns from the past five years.
  • List of loans and debts, including credit cards and medical bills.
  • Insurance policies including life, health, disability, mortgage, homeowner’s, accident, auto insurance and contact information for their agent.
  • Names,  addresses and phone numbers of doctors, dentists, pharmacists, lawyer, tax advisor and accountant will be helpful.
  • Copies of Will, Healthcare Directive and Advance Directives.
  • Titles to motor vehicles.
  • Deeds to property
  • Safety deposit box location and keys.
  • Utility bills account numbers

Having a hard time getting your parents to share?  Offer to help find the information. Perhaps you provide a checklist for them.  It’s reassuring to know that your kids or spouse won’t be burdened by having to look for documents.