Washington, DC (March 28, 2007)—A recent survey on consumer behavior conducted by a Fortune 500 company examined the tax expertise of over 1,000 taxpayers ages 22-62 and revealed that eight out of ten of them were surprisingly unaware of basic information needed for completing and submitting a tax return. If you are one of the unfortunate eight or just a kindred spirit, you probably need to hire a tax preparer. If you haven’t already located a licensed tax professional and handed over the documents he or she needs to prepare a correct return and obtain your maximum refund, it’s time to get moving! April 17 (taxpayers get an extra two days this year) is almost here. The National Association of Enrolled Agents (NAEA), a professional association comprised of tax practitioners licensed by the US Department of the Treasury, has compiled the following checklist of some of the documents people frequently forget to bring to bring along when they meet with their preparers.

Receipts for Charitable Contributions: You’re probably a much bigger philanthropist than you’d thought! Remember that co-worker you sponsored in the Avon Breast Cancer Walk? The friend who took part in the Polar Bear Plunge for the Special Olympics? And how about all those cookies and the wrapping paper you bought from the neighborhood kids to raise money for their schools or scout troops? Did you check the “fuel fund” box last winter to help provide heat for low-income residents? Don’t forget the non-cash contributions, such as clothing and appliances you donated to the Salvation Army or other charities. List the items given and their fair market value and bring that to your tax preparer along with the receipts.

Social Security Numbers for Children and Dependents: Contrary to popular belief, a dependent isn’t always a child. Anyone who is a member of your household for the entire year for whom you provide more than half of his or her support may qualify. Discuss this when you meet with your tax preparer and don’t forget to bring the social security numbers of any potential dependents.

Documentation of Loan Refinances: Finance points, interest, or property tax adjustments are often deductible. When refinancing for improvements, remodeling or repairs, you may be able to deduct all the points paid on that new loan. To qualify, you must write a check for the points, not roll it into the loan. You didn’t? You may still deduct them over the term of the loan. Incidentally, if you are on the refinance merry-go-round, constantly getting lower interest rates, the points from the last loan, being deducted over 30 years, can all be deducted when you pay off that previous loan.

Medical Bill Receipts: If you itemize your deductions, you may be able to deduct expenses you paid that year for medical care (including dental) for yourself, your spouse and your dependents. Medical expenses include fees paid to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists and Christian Science practitioners. Also included are payments for hospital services, qualified long–term care services, nursing services and lab fees. Payments for acupuncture treatments or inpatient treatment at a center for alcohol or drug addiction are also deductible medical expenses. A pleasant surprise for many smokers and the people who live with them is that amounts paid for participating in a smoking–cessation program and for drugs prescribed to alleviate nicotine withdrawal may also be deducted.

Another issue to discuss with your tax preparer might be your marital status. If it has changed this year, don’t forget to tell your tax preparer. Divorcing? The up side of paying alimony is that you can deduct it. The down side of receiving it is that it’s taxable. Pensions and IRA distributions are other important issue that many taxpayers neglect to mention. Some people aren’t aware that most pensions are taxed, and if you drew from your IRA before age 59 ½, you may owe penalties. Did you take a beating in the stock market in 2006? A licensed tax preparer can use these realized losses to offset your taxable gains. And if you had a really bad year and wound up collecting unemployment compensation, bring documentation of this—it’s taxed, too.

One last tip: Make an appointment after tax season for a tax strategy meeting with an enrolled agent. If you need assistance finding a licensed tax preparer in your area, go to www.naea.org and click on “Find an Enrolled Agent.” Unlike attorneys and CPAs, who may or may not choose to specialize in taxes, all enrolled agents (EAs) specialize in taxation and may only receive the EA designation after demonstrating their competence before the IRS.

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