Time to Reach Out to Your Accountant
Happy February 1st! As the cold weather keeps us indoors, and the headaches persist, let’s mark the start of an eventful month with not only Valentine’s Day and the Super Bowl but also the beginning of tax season!
We mentioned the upcoming tax season a few weeks back when the IRS hadn’t yet set a start date. This year, the beginning was delayed to February 12th to ensure the digital tax systems were equipped to handle the expected surge in filings. While fewer people may file this year for obvious reasons, mark February 12th on your calendar as the day you can start submitting your tax returns.
Although you can’t file until the 12th, you can begin preparing your taxes now. Services like TurboTax and H&R Block are ready to assist with appointments to get your filings in order. They’ll hold onto your completed filing until the 12th when they will submit it. Given the current situation, these services offer virtual tax prep consultations, allowing you to seek help through a smartphone or webcam if you prefer not to visit a physical office. Alternatively, you can use the IRS’ free filing service on their website for a DIY approach.
While you likely know the usual documents you need for tax preparation, there are a few new additions this year. If you missed receiving the second stimulus check due to issues with last year’s filing, get a 1040 form ready to claim your Recovery Rebate Credit. Additionally, if you received pandemic unemployment assistance from the state, you’ll need a 1099 form, either sent digitally or by mail.
