Welcome to 2020! While it may seem as if April 15 is a long way off, now is the time to start preparing for tax season. Below are some helpful tips which may help filing your tax return less stressful.
1. Gather your records. You should develop a recordkeeping system that keeps all your important information in one place. The system can be in electronic or paper format.
2. Review your records and make sure you have everything you need to claim deductions. If you are missing documents needed to claim deductions set out to obtain those.
3. As you receive tax documents in the coming weeks and gather your own records, add them to your recordkeeping system. Having all the necessary documents in one place when it is time to prepare your return will help you file an accurate return which takes into account all your allowable deductions.
5. Confirm that employers, banks and others who made payments to you have your correct mailing address.
6. You should expect to receive W-2s, 1098s and 1099s by January 31, 2020 and 1095s by March 2, 2020. Review these forms carefully. If any information is inaccurate contact the payer immediately and ask them to correct the form.
7. Notify the IRS if your address has changed. Use IRS Form 8822 for this purpose.