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:

| Element | Detail |
|---|---|
| Primary income sources | Wages, business, investments — rank by magnitude |
| Income trajectory | Stable, growing, declining, or volatile across years |
| Filing status pattern | Changes signaling life events |
| Material deductions/credits | Items significantly affecting liability or true economic position |
| Immediate red flags | Inconsistencies or anomalies requiring attorney attention |

### 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

| Source | Form/Schedule | Key Analysis Points |
|---|---|---|
| Wages | 1040 Line 1, W-2s | Employer breakdown, YOY changes, job changes |
| Self-employment | Schedule C | Gross receipts, major expenses; scrutinize vehicle/travel/home office/family payments, profit vs. lifestyle disconnect |
| Investment | Schedule B, D | Interest, dividends, capital gains/losses; asset ownership implications |
| Rental | Schedule E | Per-property gross rents, expenses, net; note depreciation masking positive cash flow |
| Pass-through | Schedule E (K-1s) | Partnership/S-corp/trust as marital or creditor-reachable assets |
| Retirement | 1040 Lines 4–5 | Regular vs. premature distributions; financial stress indicators |
| Other | 1040 Lines 7–8 | Unemployment, alimony received, misc. |

### 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:**

| Finding | Discovery Action |
|---|---|
| Understated business income | Bank statements, P&L, balance sheets |
| Inconsistent investment income | Brokerage statements via subpoena |
| Aggressive deductions | Supporting documentation request |
| Precipitous income decline | Employment verification, vocational analysis |
| Complex entity structures | Forensic accountant / business valuator |

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

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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)