simple to complex
the W-2 and beyond
As a baseline, a simple tax need would look something like this: Taxpayer files Single or Married Filing Jointly, receives a W-2 , is a renter or home owner, and takes a standard deduction on their returns.
Adding various circumstances and events in the given tax year, would add to the tax filing and tax planing needs, effectively increase its complexity. See the examples below.
the culprits to complexity
Moved to a new state
Married and had a child
Sold then purchased a new home
Disposed of cryptocurrency at a loss
Traded stocks and mutual funds
Own multiple rental properties
Acquired your first rental
Contributed to a Traditional or Roth IRA
Converted IRA monies to Roth
Sold vested RSUs
Vested Incentive Stock Options (ISOs)
Started a home-based business
Purchased a vehicle for business
Became an active partner in a business
Participate in a Deferred Compensation Plan (DCP)
Opened and funded a Solo 401(k) or SEP IRA
Inherited assets as a beneficiary of an estate
Hold assets outside of the United States
International income from working abroad
Trustee for a simple-trust
Received K-1s
Made gifts to family members
Donated money or property to charitable organization
Funded a Donor Advised Fund
Receive pension income or Social Security retirement benefits
Retired but still earning an income