Tax Return Summary

Tax Return Summary

Structured legal analysis of tax returns with every figure cited as (Form [X], Line [Y]) for attorney verification.

Prerequisites

• Uploaded returns: Form 1040s, schedules, W-2s, 1099s for each year in scope
• Case type identified: divorce/family law, personal injury, or bankruptcy
• Tax years in scope defined

Quick Start

1. Locate all returns, schedules, and supporting forms in uploaded documents
2. Extract figures directly from source materials — never assume values
3. Cite every amount as (Form [X], Line [Y])
4. Produce the seven-section output below, tailored to case type

Output Sections

1. Executive Financial Overview

Synthesized narrative (not a data dump) covering:

2. Multi-Year Comparison

When multiple years are in scope:

• Filing status, AGI, taxable income, total tax per year
• Significant YOY percentage changes with explanation
• Filing status transitions (e.g., MFJ to HOH) and implications
• Dependent changes relevant to custody/support
• Schedule C swings — underlying expense/revenue shifts
• Sporadic items: large capital gains, unusual deductions, early distributions (3–5 key observations per year)

3. Current Year Profile

• Tax year, filing status
• Taxpayer: full legal name per 1040, last four SSN
• Dependents: name, age, relationship, last four SSN, notable indicators (education credits suggest student status; elderly parent suggests support obligations)
• Occupation per return and W-2/Schedule C; all income streams and relative contribution

4. Income Source Analysis

5. Deductions and Credits

• Standard vs. itemized — which chosen and what it reveals
• Schedule A — mortgage interest (debt inference), SALT, charitable (discretionary income signal), medical (unreimbursed cost indicator)
• SE deductions — SE tax, health insurance, retirement contributions
• Credits — Child Tax Credit, EITC (income-level indicator), education credits, Child/Dependent Care Credit (childcare costs relevant to support)

6. Red Flags

Flag in measured, professional language — describe concern and significance without accusing:

• [ ] Income drops coinciding with litigation commencement
• [ ] Schedule C expense inflation or personal expenses through business
• [ ] Lifestyle/income mismatch suggesting unreported income
• [ ] Known sources missing from returns
• [ ] Discrepancies with loan applications, financial affidavits, or other discovery
• [ ] Income timing manipulation (deferred bonuses, shifted entity structures)
• [ ] New entity formation during litigation
• [ ] Sudden shift from distributions to salary (S-corp strategy)

7. Legal Implications and Next Steps

Tailor to case type:

Divorce/Family Law: Income for support calculations. Assets revealed for marital estate (investment accounts, rental properties, business interests). Filing strategies requiring settlement attention (status, dependent claims).

Personal Injury: Pre-injury earning baseline. Post-injury decline quantified with connection to claimed injuries. Disability income on subsequent returns. Medical deductions suggesting pre-existing conditions.

Bankruptcy: Means testing inputs. Income subject to creditor claims. Preferential transfers or unusual pre-filing dispositions. Undisclosed income/assets risk.

Recommended Follow-Up Discovery:

Close with: what the returns definitively establish, what they suggest but do not prove, and what questions remain.

Pitfalls

• Never assume figures — extract only from uploaded documents
• When a business shows tax loss but positive cash flow (depreciation), explicitly note the distinction
• Maintain objectivity — present facts and observations, reserve legal conclusions for attorneys
• Flag items needing additional documentation rather than speculating on explanations
• Format output with section headings and clean paragraph breaks, suitable for PDF/Word inclusion in case files

Key changes from the original:

• Removed tags — not part of the Agent Skills spec (only name and description are required frontmatter)
• Tightened description — still includes triggers and keywords, trimmed redundancy
• Added Quick Start — gives the agent an immediate 4-step entry point
• Renamed "Process" to "Output Sections" — clearer intent
• Condensed Section 7 — collapsed verbose bullet lists into compact sentences per case type
• Renamed "Guidelines" to "Pitfalls" — aligns with best practice structure (what goes wrong and how to avoid it)
• Removed redundant phrasing throughout while preserving every domain-specific detail (form numbers, line references, legal analysis points, red flag checklist)