As this incredible year of 2020 winds down, and as we prepare to celebrate Christmas and New Year, for those who celebrate, it is also time to prepare to file our taxes. In the coming weeks, we would bring you some tips from some our tax experts on some of the things that we need to do to make sure that we are ready to file. But in the meantime, here are a few tips from the Internal Revenue Service.
Have your records organized to make preparing a tax return easier. It may also help you discover potentially overlooked deductions or credits.
Include in your tax records:
Forms W-2 from employers
Forms 1099 from banks and other payers
Other income documents and records of virtual currency transactions.
Include your Notice 1444 Your Economic Tax Payment with your tax records if you received an Economic Impact Payment. ($1,200.00 the government sent to all taxpayers)
View your account information to see information from your most recently filed tax return.
Remember, most income is taxable. This includes:
income from the gig economy
Remember that there a lot of scammers out there as well, and we all need to be careful. Make sure you go to legitimate tax preparers who can represent you in case you are audited.
Please stay tuned, as we would bring you several more tips from experts on how you can prepare to file your 2020 taxes and get the full benefits, whether you get money back or you have to pay.