Tips to Prepare for Tax-Filing Season
As the start of a new year in ushered in, it is a good idea to start thinking about how to handle federal and state tax returns. The IRS begins accepting 2020 returns on Jan. 27, 2021. Even if financial situations are simple and straightforward, it pays to make sure to be up-to-date and actively working to reduce tax bills, thus reducing anxieties associated with tax seasons.
DOUBLE CHECK YOUR PAYCHECK If an insufficient amount of taxes are deducted from your paycheck, it’s a possibility to be required to invest a little more into Uncle Sam at tax time. If your contribution is excessive, a refund is the rewards — but, maybe a little money in your pocket every week is more sufficient than an annual repayment.
DECIDE WHO WILL PREPARE AND FILE YOUR TAXES If major changes occurred in 2020 —marriage, divorce, or business startup—taxes may be more complicated and time consuming. As a result, the need to hire a CPA or other tax professional to prepare and file your taxes may be necessary. Make provisions and decisions early on. Waiting until April could mean penalties.
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INSIGHT MAGAZINE
Shelton Brown, CPA, MBA Chief Executive Officer ACTHR
