Tax Time Tips and Tricks to Know for 2021

Mon, 09 Nov 2020 16:02:07 GMT

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.

Are You Self-Employed? Here’s Everything to Know About Preparing for Tax Day

Sun, 01 Nov 2020 15:56:57 GMT

Are You Self-Employed?
Here’s Everything to Know About Preparing for Tax Day.

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.

Here’s a checklist of what any self-employed individual needs to prepare for tax day, as well as some deduction benefits to be aware of.

What You Need to Properly File a Tax Refund

Proof of Self-Employment Income

Including your gross income, all bank deposits, and any interest you have accrued.

Adjustable Figures

Beginning inventory and final inventory.
Auto expenses and business mileage.
Bad debts.
Salaries paid.
Business expenses, whether you pay for an office space or have furnished a home office.
List of assets.
Advertising and marketing expenses.
Business loan interest.

Tax Deductions for the Self Employed

Home office deduction.

As mentioned before, you can get a tax credit for expenses accrued creating a home office.

Health insurance premiums.

If you do not qualify for an employer-based health insurance plan, you can deduct all your health, dental, and qualified long-term care insurance premiums.

Internet and phone bills.

We live in a digital world, so if you rely on your mobile phone and computer to run your business, you are able to deduct your phone and Internet bills.

Vehicle use.

Using your vehicle for anything business-related, you are eligible for tax deductions. This includes gas mileage, repairs, and annual wear and tear to the vehicle.

Education.

Any educational material, such as attending a conference or taking a course, is considered a business expense as you invest in these to maintain and improve your skillset.

Filing self-employed taxes doesn’t have to be a headache when you work with ATM Express Financial and Tax Services. We’re here to help streamline the process and take all the stress off of you during tax season, so contact us here to learn how we can help.

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Tax Time Tips and Tricks to Know for 2021