How to Prepare for Tax Season and Common Filing Errors to Avoid

NEW YORK, February 2, 2021 (Newswire.com) - Well, that was a blur. If you feel like you just filed your 2019 taxes, you're not alone. But alas, here we are. Your 2020 W-2 has arrived, and it's time to get organized. 

The best thing you can do to prepare for tax season is get all your ducks in a row. So, whether you do the math yourself, use tax filing software, or have a guy, let's get quackin'. 

Steps to take before Tax Day this year

If you have everything you need before you start filing your taxes, that can make your life easier. Follow these steps now and thank us later. 

1. Get your tax records in order and make sure you have:  

• Your most recent tax return 
• Form(s) W-2 from your employer(s) 
• Form(s) 1099 from your bank/other payers 
• Form 1095-A if you purchased health insurance from the Marketplace 
• Notice 1444, Your Economic Tax Payment, if you think you're eligible for a Recovery Rebate Credit. You may be eligible for the credit if you didn't receive a stimulus check, received less than $1,200 (or $2,400 if married and filing jointly) and $500 for each qualifying child you had in 2020. 
• Any other income documents 

2. Make sure your Individual Tax Identification Number (ITIN), if applicable, hasn't expired and submit Form W-7, Application for IRS Individual Taxpayer Identification Number, to renew your ITIN as soon as possible if it has. 

3. Check to see if you're withholding the right amount, and if you need to make an adjustment, submit a new W-4 to your employer. 

4. Prepare mentally (and financially) to not receive your refund right away. Typically, the IRS issues refunds within 21 days, but the organization warns taxpayers not to rely on receiving the payment by a certain date as some returns need further review to protect against identity theft and fraud. If you're counting on the refund to help pay down debt, consider using a debt payoff calculator to see how soon you'd be able to pay off your debt with extra funds. 

Common tax filing errors to avoid

According to the IRS, these are some of the most common mistakes to avoid when preparing your tax return: 

• Inaccurate or missing Social Security numbers: This should match what's on your Social Security card. 
• Typos in names: This should also match what's on your Social Security card, so be mindful if you've recently changed your name. 
• Wrong filing status: If you're not sure how to file, the IRS has an Interactive Tax Assistant, but most tax filing software can assist with this as well. 
• Math errors: Always double-check your work! 
• Incorrect routing and/or account numbers: On top of validating your bank information, be sure to select the direct deposit option to get your refund as quickly as possible if you're owed money. 
• No signature: An unsigned tax form isn't valid. If you're married and filing jointly, you and your spouse both likely need to sign, with a few exceptions, like military members or taxpayers with a valid power of attorney. 

Source: Credello