If you are itching to get started on filing your taxes for 2020, be sure you are prepared when you sit down and get to work. Having what you need at your fingertips will help the process go smoothly, faster and without mistakes that could lead to delaying your return or being audited later. By organizing your records, you’ll be more prepared to work your way through IRS worksheets and make sure you fill out the right forms.
1. Gather Your W-2s
If you work for someone else, your employer will make sure you get your W-2 form (or forms from multiple employers). You should have received your W-2s by the end of January. It will have information that you’ll need on your tax return, for both federal and state filing.
Your W-2s will show:
-Your income for Federal and State filings
-Payroll taxes you paid for both Social Security and Medicare
-Contributions to your retirement plans
-Contributions to your flexible savings accounts or health savings accounts
Remember that if you are the Employer than you must have all W-2’s mailed out by January 31st each year. If you have not mailed these out yet please call today and we can assist you with this.
2. Gather Your 1099s
Many companies underestimate the time required for collecting the information. It’s a best practice to receive a W-9 form from a contractor or company before the first payment is ever even made. Having this documentation will help immensely come time to prepare 1099 taxes. These tax information forms outline the various ways you made money last year, such as investment income. Your banking, credit card, and other income institutions will also be filing with the IRS and sending you a copy for your records.
As far as deadlines go, companies must first send a copy of the Form 1099-MISC or Form 1099-K to the recipient, vendor, or contractor who was paid by January 31st of the following year. Contractors need to reach out immediately if any corrections are required. Next, 1099 forms must be filed with the IRS. If you plan on filing via paper mail, the deadline is January 31st. The deadline for filing electronically is also January 31st.
3. Gather Your 1098s
These forms allow you to make deductions and show those items which you paid that may well be deductible. Be sure to keep and track your receipts, invoices, and bills in one place to help you itemize this information. There are typically year-end statements for your mortgage, tuition, student loans, etc., and they should have been sent out by the end of January.
If you filed your taxes after making sure you have all the necessary documents, you should be able to arrange an accurate return and better prepare to avoid mistakes that could result in delays. Once you have filed your taxes and are expecting a refund, you simply now wait! And that can often be the hardest part!
4. Enlist Corporate Capital
Our team has been helping businesses incorporated in Nevada and nationwide for many years now. We offer tax consulting and preparation to provide the maximum protection for your assets and tax savings. Our certified CPA and accredited IRS tax accountants know the ins-and-outs of tax laws to make sure your business is compliant.
What You Get With Corporate Capital
With Corporate Capital, you get a quarterly review of your tax liability, profit, and loss to help lower your next year’s taxes. Our CPA will also review your business expenses that conserves your legal minimum tax payments so your business can continue to grow.
You will also receive tax return preparation for both federal and state returns, so you are compliant with your taxpayer reporting. You’ll get a review of your previous taxes to see if we can save you money, and of course, consulting and research for your business’s tax issues all year-round. You can count on our expert’s professional advice and expect to have minimal tax liability.
Whether you file your taxes yourself or want to enlist our help, we hope this information has proved helpful to make your life easier this tax season. Our team of licensed professionals works hard to provide you with accurate and up-to-date information to allow you to grow your wealth. To learn more about how Corporate Capital can help you with your books and taxes, please call 855-371-0070 today and book your FREE consultation!