Preparing to File Next Year’s Tax Return

While tax season may still seem relatively far off, taxpayers are still being encouraged to take certain steps to prepare for the 2021 tax filing season, including gathering tax-related documentation and checking their ITINs. To learn more about the things that you can do to make the tax return filing process easier, please call our experienced Florida tax return preparation lawyers today.

Gathering Documentation

Accurately filing a federal tax return requires access to a lot of paperwork, including:

• Forms W-2;
• Forms 1099;
• Income documents and records of virtual currency transactions;
• A Notice 1444 recording receipt of an Economic Impact Payment; and
• Other income-related records.

In addition to making it easier to complete a tax return, having this documentation on hand can also help taxpayers identify overlooked deductions and credits.

Renewing Individual Taxpayer Identification Numbers (ITINs)

Before filing next year’s taxes, taxpayers should also be sure to check that their ITINs haven’t expired. If a taxpayer finds that his or her ITIN has expired, he or she will need to complete a Form W-7, or an application for a new ITIN. As a reminder, ITINs with middle digits 70-87 that expired in the last four years are renewable. Renewing an ITIN is an important step, as taxpayers who fail to do so can expect a delayed refund and could also find themselves ineligible for specific tax credits.

Checking Tax Withholding

Taxpayers who are starting to prepare for next year’s tax season may also want to consider double-checking the amount of tax being withheld from their paychecks. Those who need to make adjustments should do so as soon as possible by filing a new Form W-4 with their employer. Taxpayers who collect significant non-wage income, such as investment income, self-employment income, taxable Social Security benefits, or pension income may also need to make quarterly estimated tax payments, with the last payment due on January 15th of next year.

Making Use of Online Tools

Employing social distancing practices continues to be of the utmost importance, as the U.S. is still facing surges in COVID-19 cases across the country. Fortunately, many tax return preparation-related steps won’t require in-person contact, but can be achieved online or over the phone. Filing electronically is also possible online or by mail. Our legal team is happy to make adjustments to ensure that you receive the help you need, while also doing our part to keep you and your family safe.

Set Up a Free One-on-One Consultation

If you have a tax question or need help preparing next year’s tax return, please call 386-490-9949 today and a member of our legal team will help you set up a consultation with experienced tax return preparation attorney Ronald Cutler, P.A. We are here to meet with you seven days a week, offering weekend appointments for those who cannot break away for a meeting during the week. There is also no charge for initial consultations, so if you are grappling with a tax matter, don’t hesitate to call or contact us online.

Resource:

irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-next-years-taxes