Despite the fact that tax season is still more than three months away, the Internal Revenue Service (IRS) urged taxpayers, including those who received stimulus checks or advance payments from the Tax Credit for Children, to take measures to expedite the process to come.
Therefore, the federal agency invited taxpayers to plan in advance this process, which can sometimes become complicated. Therefore, starting this process early will help those who meet their tax obligations to file an accurate return and avoid processing delays that can delay tax refunds .
For this reason, the IRS said this is the first in a series of reminders to help taxpayers prepare for the upcoming tax filing season. The federal agency indicated that it is preparing an updated website. It will mention the steps that taxpayers can take to prepare to file the tax return 2021 next year.
Collect and organize fiscal records
This process refers to fiscal records, having them organized facilitates the preparation of a complete and accurate tax return. In addition, it helps avoid errors that cause delays in processing and refund.
Individuals should have all their tax information available before filing the return to ensure that the statement is complete and accurate. They must notify the IRS if their address changes and notify the Social Security Administration of a legal name change.
On the other hand, the taxpayer should keep in mind that most income is subject to taxes. Record keeping for individuals includes:
1. Employer Forms W-2
2. Forms 1099 from banks, issuing agencies, and other payers, including unemployment compensation, distributions from a pension, annuity, or retirement plan.
3. Form 1099 – K, 1099 – MISC, W-2 or other income statement for workers in the gig economy.
4. Form 1099 – INT for interest received.
5. Other income documents and virtual currency transaction records
According to the IRS, the documents of Income can help individuals determine if they are eligible for deductions or credits . In addition, taxpayers who need to reconcile their advance payments of the Child Tax Credit and the Premium Tax Credit will need your information related to 2021.
Those who received third party Economic Impact Payments and believe they qualify for an additional amount will need their stimulus payment and additional amounts to calculate and claim the Recovery Refund Credit 2021.
You may also be interested in: Tax Credit for Children: who has not received it yet can request it, the 15 November the penultimate payment of the year is released