We are already almost two weeks into 2021, which means that this is the right time to begin preparing your taxes for 2020. Below are seven tips to make the process as simple and smooth as possible.
1.- Get Your Form W-2. This form shows the amount of taxes withheld from your paycheck throughout the year and is essential to file your tax return. It’s worth keeping in mind that employers have until Monday, February 1, 2021, to file Forms W-2 and send their copies to their employees.
2.- Gather Forms 1099. You should have received these forms if you received payments as an independent contractor last year.
3.- Verify Your Individual Tax Identification Number (ITIN) to make sure it’s still valid. Any ITIN NOT used on a federal tax return at least once in the last three years expired on December 31, 2020. Additionally, all ITINs issued before 2013 with middle digits of 88 (For example 9XX-88-XXXX) expired at the end of 2020. Those with middle digits 90, 91, 92, 94, 95, 96, 97, 98, or 99, that were assigned before 2013 and have not already been renewed, expired as well.
4.- If you received an Economic Impact Payment, remember to keep your Notice 1444. The IRS mailed this notice to the last known address of every person who received an Economic Impact Payment. This notice includes information about the amount of your payment, how it was made, and how to report any payment you didn’t receive .
5.- Did you change address? Don’t forget to notify IRS. You should notify the IRS about any address change using Form 8811 del IRS. If you change your name, remember that you must notify the Social Security Administration (SSA).
7.- Remember: most income is taxable This includes
- Unemployment income
- Refund interests
- Income from the gig economy
- Virtual currencies
More Tips About Taxes
These are some previous posts with useful tips to help you navigate with confidence the world of taxes:
- These are your options if you didn’t file your taxes on time
- How to start preparing your 2020 tax return
- Do you know what is your tax filing status?
- 4 Tax-related scams to avoid
- Expecting a tax refund? Here’s everything you need to know
- Remember this important thing when you get your Economic Impact Payment
Contact the Tax Experts at Delgado’s Insurance
If you are looking for assistance with your 2020 tax return, contact our experts at Delgado’s Insurance. Our mission is to help you make sense of your options to reduce your liability and maximize your deductions while staying compliant with all relevant laws and regulations.
We have locations in Riverside, California, and Bloomington, California. Contact us today by telephone (951-361-0084, 909-421-9003), email (email@example.com), or through our social media accounts (Facebook, Twitter) to get a free quote and learn more about our wide array of services.