Tax Season Begins Feb 12th
Set Yourself Up for a Hassle-Free Tax Season
By taking a few simple steps now, you can greatly reduce uncertainty and stress during the 2020 tax filing season. These actions will help you complete your return efficiently, without unpleasant surprises:
Gather Documents Showing Wage, Business And Other Income
- If you work as an employee, you should receive a W-2 from your employer(s) by early February, with your earning and the total tax withheld from your paychecks.
- If you are self-employed (including gig economy work) or own a business, you should receive 1099 forms from your clients showing fees paid to you.
- Interest and dividend income, along with royalties from past work, are also reported on 1099 forms.
- Recipients of unemployment benefits (including $600 federal Pandemic Unemployment Assistance payments) and/or taxable Social Security benefits should receive a year-end statement detailing these payments as well.
Organize Records of Other Potentially Taxable Transactions
- Make sure you have complete records of all your significant financial and property transactions during 2020.
- The sale of major assets like stock, a house or any other “big ticket” item may yield a taxable capital gain.
- Many cryptocurrency transactions (such as buying and selling Bitcoin) also have tax implications, since the IRS classifies cryptocurrencies as property.
Be Aware of Refund Interest And Stimulus Payments
- Due to the Pandemic some tax refunds were delayed
- IRS made Refund Interest Payments to many recipients whose refunds were delayed
- The Refund Interest payment, (not the refund) Is classified as taxable income
- If you received an Interest Refund, you will receive a 1099 INT form
- You will need the 1099-INT form when preparing your taxes
Recipients of a 2020 Economic Income Payment (EIP, also called a stimulus payment) should have also received IRS Notice 1444, Your Economic Impact Payment is not taxable. But, make sure to keep this notice handy. If your EIP amount was lower than it should have been, Notice 1444 will give you the information you need to claim a tax refund for the balance owed to you
- The IRS opens for tax filing February 12th.
- With all the unpredictability of life during a pandemic, staying ahead of the tax game is more important than ever.
- Assemble your records as soon as possible.
- If you have any questions, RTW can help you identify and organize the documents you need.
- We will have far greater availability early in the tax season than at the last minute.
RTW is Experienced in Tax Preparation for Individuals and Businesses.
- Please Schedule an appointment to speak with us today!
- https://calendly.com/rtw-calendar or call us! (855) 205-8486.
For your convenience, we offer remote filing from the comfort of your own home!
- To schedule an appointment please click on link https://calendly.com/rtw-calendar or go to our website at www.rtwxxact.com and click on the “Schedule” tab in the top right- hand corner.
- You may also schedule a drop-off appointment by clicking on the Calendly link above.
- RTW’s 2020 filing can be done by uploading your documents to our secure drop box. https://www.rtwxxact.com/contact/
- Clients may also forward their documents to us via Efax 1-855-541-0895