Tax season will be here soon! Nextep will make W-2s available online and send them directly to employee homes no later than January 31, 2021.
Here’s how you can prepare for the upcoming tax season.
Take a look at last year’s tax return and make a note of any forms or technology you used to file. You’ll want to gather receipts if you plan to claim deductions for charitable donations, business expenses, or medical expenses.
Be sure to have dependent info with the rest of your tax documents if you have any and, if you’ve moved recently, double-check that your employer has your current address for prompt W-2 arrival. If you have the option, take advantage of an electronic copy of your W-2 — you’ll be able to get started on tax filing as soon as your W-2 is ready instead of waiting on a paper copy.
Review COVID-19 Relief Info
The IRS wants you to be prepared; see their COVID-19 tax tips. If you didn’t get the full amount of the CARES Act Stimulus Check – $1,200 for individuals or $2,400 if married filing jointly, plus $500 for each qualifying child – you may be eligible for a Recovery Rebate Credit.
Check Your Withholding Status
In addition to checking your last paystub, you can look at your tax withholding to prep for tax filing. Use the IRS tax withholding calculator to get an estimate of your income tax return this year and make sure you’re withholding enough taxes.
Decide How You’ll File
You have options for how you file your taxes. One popular choice is using a tax software service to make electronic filing easy and cost-effective. The IRS offers a free file tool to help you find free tax software if you earn $72,000 or less per year.
If you have more complicated tax situations, professional tax preparers can help make sense of your tax return for a fee. They may even find deductions or tax credits you might not have received or known about when preparing your own.
The deadline to file 2020 tax returns and pay any tax owed is Wednesday, April 15, 2021. Take a look at the IRS FAQs to get more info about tax filing. While Nextep cannot provide personal tax advice, we’re here to help if you have questions. Contact us online or call us at 888-811-5150.