5 Key Steps to File Your 2020 Tax Return
KISS* and Get a Refund
To file your 2020 tax return, you can still
file on Tax Day, April 15th, but it is best not to wait until the last
minute if you can help it. Uncle Sam just began processing tax returns
on January 27th. But, that’s no reason to stress. It comes and goes
every year and we always seem to make it through the nearly three month
tax season just fine. Sure, you may owe taxes this year, but it doesn’t
hurt to think positive.
Tasks to file taxes are less daunting when you consolidate them into these 5 steps:
- Locate your W2
If you earn a wage or salary, the most important form is the W-2 . You should have received this form in early January. The official title is Wage and Tax Statement and it will have the details on earnings and taxes paid throughout the past tax year. If you didn’t receive your W2, follow up with your employer(s) immediately. It is a required attachment for your tax return submission. - Consolidate
all of your documents and decide whether you will file a standard
deduction or itemize your deductions. Setting up a folder titled 2020
Tax Return (either online or by hard copy) is a great way to stay
organized. Documents to gather include:
For Standard deductions:
W-2s
1099s (for nonsalaried jobs, side jobs paid in cash, etc.)
Mortgage interest statements
Investment income statements (401k, IRAs, rental properties, investment properties, etc.)
For Itemizing:
Childcare
Education costs
Charitable giving
Medical expense - Pick the filing status that applies to you:
- Single
- Married Filing Jointly
- Married Filing Separately
- Head of Household
- Qualifying widow(er)
4. Review all documents once again and file your 2020 Tax Return.
- Either hire a pro to file your 2020 tax return electronically, file your own return using tax software (there are free options for filing electronically such as turbotax.intuit.com, hrblock.com, etc.) or file on your own using the snail mail route. (Be sure that your mail is postmarked April 15, 2020.)
- The IRS recommends that taxpayers file electronically to reduce potential errors and receive refunds faster.
If you owe, you don’t have to send that tax due amount when you file your form. You can actually submit your 1040 early and wait until the April 15 deadline to send the funds you owe.
- Make a list of things you can begin doing this year to be more organized and take advantage of any deductions allowed for next year’s tax time. If you are planning to purchase a home in 2020, you’ll need many of these same documents.
8 Additional Tax Advantages of Investment Properties
Torelli Properties can assist
you with additional tax savings through investing in real estate. With
the addition of an investment property, you can achieve eight major tax
advantages as a landlord. Send us a request to receive the full list.
We would love to discuss what to look for in an investment property that will get you the best return.
Sources:
https://www.realsimple.com/work-life/money/money-planning/when-is-tax-season?
https://www.daveramsey.com
https://www.dontmesswithtaxes.com/2020/01/w2-form-what-all-those-boxes-and-fine-print-mean.html
Image: mostphrases.blogspot.com
*KISS: Keep it Stupid Simple
