Updated 1/15/2024

Reviewing a client’s tax return can always be an informative exercise to ensure you understand all sources of their income and their tax liabilities for the prior year. This is true for existing clients with whom you have been working and is especially true for new clients as a way to familiarize yourself with their situation.

In this checklist, we highlight points to consider on your client’s tax return if they are working, including:

• Review the client’s filing status. If they are married should they automatically file jointly with their spouse or might there be situations where the client might consider filing separately?
• If the client has dependent children, they may be eligible for certain credits.
• If the client is divorced or widowed, there are filing steps for them to take depending upon timing and circumstances.
• If the client had investment income for the prior year, there are reporting issues that you will want to be sure your client addressed in connection with this income.
• If the client owned tax-advantaged accounts during the prior tax year, there may be some reporting issues to consider. Did they convert a traditional IRA to a Roth? Did the client contribute to an HSA or a 401(k) plan?
• Check to see if the client owned rental real estate or if there are state-specific issues to be considered.

This is a comprehensive checklist of the types of issues that advisors should be discussing with their clients who are working when reviewing their tax returns from the prior year.

Click here for a client-facing email template.