Tax season is in full swing as the Internal Revenue Service (IRS) began accepting returns for the 2020 calendar year earlier in February. For many, getting their information filed in a timely manner is an important task for a variety of different reasons. Not only do most individuals prefer to have this requirement put behind them, but many filers are also going to be credited with a refund and could use the extra money in their pocket as soon as possible.
Last year, the coronavirus pandemic forced a similar situation and voluntary extension of the April 15 deadline for three additional months. While nothing of that nature has been declared for 2021, lawmakers have urged the IRS to extend tax filing season
again this year. The move could help to eliminate strain on both those filing and the IRS, as they continue to deal with a backlog of returns
. Regardless of when you choose to file, provided it is before the established deadline, there is some important information to gather in order to make the process move quickly and without a lot of undue stress.
Having all pertinent information - legal names (in the event of a marriage or change), social security numbers, addresses, and a bank account number for any refunds - for everyone included on the return is critical. For those filing and dependents, this information assures that you have filed and that no one else is attempting to scam the system or steal your identity.
Income and Investments
All of the documentation individuals begin to receive through the first month of a year - W2 forms, 1099-DIV, 1099-INT, etc. - will be necessary to report your income and other earning figures. These show how much was made over the course of a year, in addition to investment calculations and capital gains/losses.
Business, Partnership, Self-Employed Info
For those who are self-employed or receive a 1099, these forms will be required to show their earnings during the past year. Partnership returns and K-1s are also necessary for those who qualify. The nature of your business and official designation will determine precisely what forms are needed and how, if at all, a personal return may be tied to the process.
Deduction Information (Itemized Returns)
The increased standard deduction amounts
allow most filers to utilize this method without having to account for itemized expenses. However, in certain situations involving excessive unreimbursed medical expenses or costs associated with long-term care facilities, individuals or married filers may be able to benefit from itemization. If so, keeping solid records and providing the backup for any figures will be warranted.
Real estate sales, rental properties, gifts, inheritance, and other issues may also impact your current return. If any of these events apply for the prior year then reporting them on the tax return may be necessary.
If you’re ready to file or have questions about what is needed, then let the tax professionals at Bloch Rothman and Associates
assist you today. In addition to providing answers for all of your tax related questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing quality tax and payroll services, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us
today. Available for all of your tax needs, there are also a number of bookkeeping services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!