Taxpayers can take steps now to get ready to file their taxes in 2020
- November 19th, 2019
There are steps you can take now to make sure your tax filing experience goes smoothly next year. First, you can visit the Get Ready page on IRS.gov to find out more.
Here are a few other things you can do now:
Check your withholding and make any adjustments soon
Since most employees typically only have a few pay dates left this year, checking your withholding soon is especially important. It’s even more important for those who:
- Received a smaller refund than expected after filing their 2018 taxes this year.
- Owed an unexpected tax bill last year.
- Experienced personal or financial changes that might change their tax liability.
You may owe an unexpected tax bill when you file your 2019 tax return next year. To avoid this kind of surprise, you should use the Tax Withholding Estimator to perform a quick paycheck or pension income checkup. Doing so helps you decide if you need to adjust your withholding or make estimated or additional tax payments now.
Everyone should come up with a recordkeeping system. Whether it’s electronic or paper, you should use a system to keep all important information in one place. Having all needed documents on hand before you prepare your return helps you file a complete and accurate tax return. This includes:
- 2018 tax return.
- Forms W-2 from employers.
- Forms 1099 from banks and other payers.
- Forms 1095-A from the marketplace for those claiming the premium tax credit.
Confirm mailing and email addresses
To make sure these forms make it to you on time, you should confirm now that each employer, bank and other payer has your current mailing address or email address. Typically, forms start arriving by mail or are available online in January 2020.
You should keep copies of tax returns and all supporting documents for at least three years. Also, if you are using a software product for the first time you may need the adjusted gross income amount from your 2018 return to validate your electronically filed 2019 return.
File electronically and choose direct deposit for a faster refund
Errors delay refunds. The easiest way to avoid them is to file electronically. Using tax preparation software is the best and simplest way to file a complete and accurate tax return. Tax prep software guides you through the process and does all the math. In fact, you can start looking into your filing options now.
Another way to speed things up is to use direct deposit. Combining direct deposit with electronic filing is the fastest way to get a refund. With direct deposit, a refund goes directly into your bank account. You don’t need to worry about a lost, stolen or undeliverable refund check.
We are always more than happy to take on new tax clients. We put our years of experience and tax knowledge to work for you. Contact us for a free consultation. Call or text 734-747-8882 or email