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Don’t pay more in taxes than you have to. Take full advantage of all deductions and credits available. Planning is the key to successfully and legally reducing your tax liability. The author, Juanita Farmer, is the Managing Partner of J.D. Farmer & Associates, LLC, a public accounting firm, located in Germantown. Rely... Read more

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Blog: Ready to File? This Tax Records Checklist Will Help

If you’re a taxpayer who has not yet filed their 2019 tax return, you may be getting ready to do so now. One of the first things you will need to do – before visiting your tax preparer – is to gather all of your year-end income documents. Doing so ensures that your tax return is complete and accurate.

Here are some of the documents taxpayers need to have on hand:

1. Social Security numbers of everyone listed on the tax return. Many taxpayers have these numbers memorized. Still, it’s a good idea to have them on hand to double-check that the number on the tax return is correct. An SSN with one number wrong or two numbers switched will cause processing delays.

2. Bank account and routing numbers. People will need these for direct deposit refunds. Direct deposit is the fastest way for taxpayers to get their money and avoids a check getting lost, stolen or returned to the IRS as undeliverable.

3. Forms W-2,Wage and Tax Statement, from employers.

4. Forms 1099,Miscellaneous Income, from banks and other payers.

5. Any documents that show income. These include income from virtual currency transactions. Taxpayers should keep records showing receipts, sales, exchanges or deposits of virtual currency and the fair market value of the virtual currency.

6. Forms 1095-A, Health Insurance Marketplace Statement. Taxpayers will need this form to reconcile advance payments or claim the premium tax credit.

7. The taxpayer’s adjusted gross income from their last year’s tax return.

Most tax forms from employers and financial institutions arrived by mail or were available online by early to mid-February. Review them carefully to make sure any information shown on the forms is accurate. If it is not, then contact the payer ASAP for a correction. If there is an error, you will receive an amended or corrected form.

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Juanita Farmer, CPA

About Juanita Farmer, CPA

Juanita Farmer writes the blog "Financial Cents". Juanita Farmer. CPA is the Managing Partner of J.D. Farmer & Associates, LLC, a Public accounting firm, located in Germantown, Maryland. Ms Farmer has been practicing in the field of accounting and tax for over 27 years.

Comments

One Response to “Blog: Ready to File? This Tax Records Checklist Will Help”

  1. On May 28, 2020 at 9:00 am responded with... #

    If there is an error, how long should I receive the corrected form?

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