Step Three: Tax Returns or Transcripts

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Tax Returns or Transcripts

If you are Employed or Unemployed:

  • Most recent tax return, signed & dated along with all schedules. Schedules are additional IRS forms that are required in addition to your tax return based on your unique circumstances. If schedules are not included then the lender may return the package as incomplete.

If you are Self-employed:

  • Most recent (2) years personal & business tax returns signed & dated along with all schedules. If business taxes are not filed, then a signed and dated letter of explanation (LOE) is required.
  • If tax return(s) is/are not available due to a file extension, then proof of the file extension is required.
  • If taxes are not filed, then a signed letter of explanation(LOE) and proof of extension is required.

Tips on Providing Tax Returns and Schedules:

Many of these shown below are for self-employed homeowners:

  • Tax returns and transcripts should always be signed and dated even if they were prepared by a third party.
  • If you have itemized deductions then attach Schedule A.
  • If you have interest and ordinary dividends that exceed $1500 then attached Schedule B.
  • If you are self-employed then attach a Schedule C.
  • If you report Capital Gains & Losses then attach Schedule D.
  • If you report Supplemental Income and Loss then attach Schedule E.
  • If you report Estimated Tax for Individuals then attach Schedule ES.
  • If you report Earned Income Credits attach Schedule EIC.
  • If you report P&L from Farming then attach Schedule F.
  • If you report Household Employment Taxes then attach Schedule H.
  • If you report Income Averaging for Fisherman & Farmer then attach Schedule J.
  • If you report Shareholder Income, Deductions & Credits then attach Schedule K1.
  • If you report Standard Deductions in 2010 tax year then attach Schedule L.
  • If you report ‘Making Work Pay’ in 2010 tax year then attach Schedule M.
  • If you report Foreign Operations of US Corporations in 2011 tax year then attach Schedule N.
  • If you report Self-Employment Tax then attach Schedule SE.

Schedules can be found at http://www.irs.gov website.

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