5 steps to a successful tax season

January 30, 2021
3 min read

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Even if you think your tax situation is straightforward, getting started can help you avoid unwanted surprises right away.

When should I send it?

The deadline for most individual taxpayers ends April 15, 2021 without an extension. If you think you’ll need more time, you can file an extension that will give you until October 15 to file your return.

Related: 4 Questions To Ask Yourself During Tax Season 2020

How will I ship?

Some taxpayers can file their federal income tax returns for free. The IRS works with several electronic taxpayer filing providers who earn less than $ 72,000 per year.

If you have a more complex tax profile or prefer the advice of a tax professional, consider the services of a Certified Public Accountant (CPA) or other tax professional when completing your tax return.

For those who did not receive the incentive or who received less than the full amount, your tax advisor can help you determine your eligibility for the refund credit.

Gather your tax files

The IRS requires that all tax documents, including W-2, 1099, and 1098, be stamped by January 31 of each year.

Make a list of what you hope to receive. If you haven’t received your documents by the first week of February, you can contact the financial institution to help resolve the issue.

Maximum pension contributions

If you haven’t used up your traditional IRA or ROTH, you still have time. You have until April 15 to contribute for the 2020 calendar year. Taxpayers can contribute up to $ 6,000 (plus $ 1,000 for those 50 and over) until 2020.

If you are self-employed, you have until the due date, including renewals (October 15), to contribute to any self-employed retirement account you may have.

Your tax advisor can help you determine your eligibility for contributions.

Related: How Is The New Stimulus Package Affecting You?

Beware of tax fraud

Tax season spawns unscrupulous businesses and individuals who will contact you and pose as the Internal Revenue Service to gain access to your refund or personal information.

It’s important to note that the IRS will never contact you by phone or email initially. Also, the IRS does not ask you to purchase gift cards or similar items to make tax payments. Do not click on any links that may appear in the body of the email.

The IRS will only contact you through the US Postal Service if you contact them. If you haven’t received an email, be aware that anyone who contacts you by phone or email is likely a scam.