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Tax Time Tips and Tricks to Know for 2021
ATM Express Financial • Nov 09, 2020
While it may seem hard to believe, tax season is right around the corner. While you aren’t legally required to file your taxes until April 15, 2021, it never hurts to prepare all your documents and forms early. Waiting until the last minute can cause a ton of stress and some unwanted headaches, so here’s everything you need to get together to help you file your tax return with no stress at all.
Tax Time Tips and Tricks to Know for 2021
Personal Information
- Your social security number, or tax ID number for every person included on your return. In most cases, your social security number and tax ID number are the same.
- Date of birth for everyone on the return.
Sources of Income and Other Investment Information
- W2 forms.
- 1099 forms.
- Unemployment income, form 1099-G.
- Investment income forms 1099-INT, 1099-DIV, 1099-B.
- Retirement income.
- Social security benefits, form SSA-1099.
- Distributions from HSA, MSA, or disability payments, for 1099-SSA.
- Rental property income.
- Taxable alimony received from any divorce made final after January 1, 2019.
- Income from state and local tax refunds, form 1099-G.
- Bank or financial institution statements. This includes form 1098-E if you are paying down student loans, form 5498 if you paid towards an IRA, and/or form 1098 Mortgage Interest Statement if you took out a mortgage within the past year.
- Last year’s refund amount.
Tax credit deduction information
- Student loan interest.
- Mortgage interest.
- Medical expenses.
- Charitable donations.
- College expense credits.
- Educator credits.
- Adoption credit.
- Earned income tax credit.
Compiling all of these documents together can seem stressful at first glance, but we recommend going slow and taking your time finding each form to ensure everything is complete and correct the first time.
If you’re feeling overwhelmed by everything there is to do, don’t fret – ATM Express Financial and Tax Services is here to help. We’ll streamline everything for you so you don’t have to, so contact us
here
to get started.
Tax season for the self-employed can seem like a yearly struggle, considering that taxes aren’t automatically taken out of your paycheck every time you get paid. But with some proper preparation, filing your self-employment taxes can be a breeze. In fact, you may even qualify for some federally sponsored deductions that can drastically lower your tax bill.