Tax Season 2021 is finally here! The Internal Revenue Service has announced that they started accepting tax returns and, more importantly, is now processing the filings as of Friday, Feb. 12.
By now millions of people have already filed of which most of them used tax software, either on their own or through other online file programs, which the IRS and its tax prep partners opened a month ago. Those 1040 forms have been on hold. Now they have been transmitted to the IRS.
Others, however, still we have some work to do!
As we are waiting for some tax statements to drift in, either to our mail or email or we have a few more complicated issues to resolve.
It’s ok to file as soon as possible, if you’re ready as well as it’s just as ok to wait, if you’re not ready. It is always better to file a correct Form 1040 and be done with it, rather than discover something later that open flags with your filing.
When you are in the filing process, here is some Pre-Filing Tips you will need to complete your taxes, as well as a look at tax situations you need to consider before filing.
Start with last year: Find your 2019 tax return!
The IRS made changes to the 2020 tax year Form 1040, but the basics are the same. If your life is substantially same, COVID-19 notwithstanding, a look at your prior tax year filing is a great template for this year.
You’ll also want to find a copy of last year’s state tax filing if you live in a state that collects an income tax.
All these documents will have sensitive data for example, Social Security numbers and bank account info if you want your refund directly deposited.
Gather perennial filing documents: The world, tax and otherwise, largely has gone digital. That should help you in the gathering of the tax and financial documents that you will need to fill out your taxes. Most third-party tax reporters are the folks that let you and the IRS know how much money you made at your job, either full-time or as a freelancer, and how much unearned income you got from investments supposed to get you this relevant income info by Feb. 1, since the usual Jan. 31 due date.
