With the holidays already behind us, this is the right time to start preparing for the upcoming tax season. Here are six tips to help you make tax filing easier this 2021.
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 receive these forms if you received payments as an independent contractor last year. Just like Form W-2, companies should send these forms by February 1, 2021.
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.- Make sure you’ve withheld enough tax. You can do this by using the Tax Withholding Estimator on the IRS website. Take a look and determine whether you should adjust your withholding and submit a new Form W-4 to your employer.
5.- Did you receive an Economic Impact Payment? remember to keep your Notice 1444. The IRS mailed notice 1444 to the last known address of every person who received an Economic Impact Payment. This letter includes information about the amount of your payment, how it was made, and how to report any payment you didn’t receive.
6.- Did you change your address? You have to notify the 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).
More Tips About Taxes
Interested in learning more tax tips to simplify things this tax season? Here are some previous posts you may find interesting.
- 4 Steps you can take to start preparing your 2020 tax return
- The IRS will deliver some Economic Impact Payments by Debit Card
- Keep in mind these ideas when you file your taxes
- We debunk 4 common myths about tax returns
- Don’t forget this essential step if you are starting a new business
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At JT Tax Services we have the experience, the knowledge, and the drive to assist you in the preparation of your taxes. We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.
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