Client Copy of the Tax Returns

What do you include in the client copy of their tax returns?

I put in the actual returns. I also include other records and schedules generated by the tax program I used. Somehow I thought that it may be a bit confusing if they have to send it to other parties.

What do you include in the copy?

What ever my software decides is important to the client.

If I ever get run over by a Number 7 bus, I hope that the information in the client copy will be enough to allow a new preparer to do a decent job. So depreciation, carry-over losses etc are essential in my view.

It depends on the sophistication of the client. I don't overwhelm them with each and every data input worksheet like Turbo Tax (128 pages for an itemized return). I make sure that the client understands what each form or schedule is and how that information relates to their tax return. A good example is the Student Loan, Or Tuition/Education Credit worksheets. Another important worksheet would be income and expense allocation for multi-state returns.

For Sch C, E, F taxpayers their Federal and State depreciation schedules are included. Unfortunately I have to explain the state differences because of my home state of MA.

For the client, pretty much whatever my software prints out. I do remove a few of the extraneous bits (like UltraTax's "return summary" when there is already a 2 year comparison). I always print depreciation schedules and put them in the back of a dead-tree version, for the clients who still want the folders.