We all know that as we turn the page to a new year, tax day is on the horizon. Pretty soon, by the end of January in fact, you will start getting tax documents in the mail….your W-2, 1099s, as well as other important documentation about retirement interest and investment income. As these electronic and paper documents begin to pile up, take a minute to start a file so that you put them all in one place and save yourself time when April rolls around. If you start a 2020 tax file now, you can begin compiling all of the necessary information that you will need to complete your 2020 return faster and with less stress. In addition to collecting all of your tax documents, here are a few other tips that Havig Tax recommends to make this tax season a breeze.
1. Review your tax documents as they come in: As your tax documents arrive in your mailbox or inbox, take a look and make sure that they look accurate. Nothing is worse than realizing in late March that your W-2 has an error on it. It can take some time to process changes, so it is best to take note as early as possible. While you are at it, take note if you are missing any documents that you normally receive and follow-up with the employer, vendor or bank so that you have what you need when it is time to file!
2. Protect yourself and your family from tax scams: You should always be aware of scams to try to take advantage of taxpayers. The IRS will never email, text or call you. They will communicate with you only by mail, so do not provide any personal information to anyone who calls you claiming to be the IRS.
3. Answer any inquiries from the IRS quickly: If you do receive a written notice from the IRS, you should always respond. Delays can cost you money and time. Ignoring the IRS is never a good idea. If you have questions or concerns about correspondence from the IRS, contact an experienced tax professional.
4. Decide who will complete your taxes: If you do your taxes, you should consider filing electronically. If you are looking to hire a tax professional for help, now is the time to make contact so that they have time to get a full picture of your tax status.
5. Think about retirement accounts and your financial future: The beginning of a year is a great time to think about your retirement contributions and your financial goals for the future. Making small changes in January can add up by next year!
Havig Tax specializes in helping individuals and businesses with tax planning, tax preparation and filing taxes each year. If you have questions or would like to speak with a member of our team, call 763-325-4400.