Tax season is fast approaching, and we want you to be prepared. Below we list the items you need to file your taxes accurately and on-time.
Individuals: Deadline – April 15th, 2021
If you are an employee your preparation should be a fairly straight-forward.
Be sure to:
Gather all your W-2s.
Request tax forms for any 401k/IRA contributions you've made.
Find your prior year tax-returns.
Examine your current living structure to determine if you have more dependents than previous years.
If you have dependents check to see if they have copies of their Social Security or ITINs for tax purposes.
You may also want to consider whether you should itemize your deductions or opt for Standard Deduction.
Request interest and dividend tax forms from your financial institutions.
Make a list of any uncommon financial transactions you made through-out the year and ask your tax-preparer for their advice.
Businesses: Deadline – March 15th, 2021
Tax preparation for business owners may be a little bit more involved and may require the help of an accountant to get organized.
To optimize on all tax-benefits offered by the IRS, we recommend that you:
Gather and maintain copies of your business receipts.
Prepare accurate and complete Financial Statements.
Issue 1099 to all independent contractors.
Find your prior-year tax returns.
Locate your business EIN and double check your business tax structure (LLC/Partnership/S-Corp/C-Corp).
Request interest expense statements for all business lines of credit.
Request interest and dividend tax forms from your financial institutions.
Prepare a list of questions for your tax-preparer if you have unanswered questions.
In addition to the documents above, some of you may have received the COVID-19 economic relief fund, SBA Grants, unemployment or the PPP. If you fall into this group, I suggest that you reach out to us or find a reputable accountant this tax season.
These unusual income sources will affect your tax-filings for 2020.