It is crazy to think we are already back at tax time. Last year around this time, we were just seeing the first cases of the coronavirus, and we had no idea what was about to come. Little did we know, tax season would be hugely impacted by the coronavirus pandemic. As the virus began to spread, the IRS was right in the peak of tax season, causing delays that lasted for months. This year, the IRS will hopefully be able to avoid those delays, as a lot of their processing that was formerly required by mail is now available electronically. Keep reading to learn more about the 2021 tax season.
This year’s tax season begins a little later than we are used to. In fact, you will have to wait until February 12th to begin filing your taxes this year. This is 16 days later than last year (CNBC). Because we saw tax law changes in December that included another round of stimulus payments, we have a delayed filing date for taxes. While it is great to file early, you will want to make sure you are prepared and have everything set up correctly, so utilize that extra time to do so!
Now, after seeing the hold up last year, it is in your best interest to meet with a financial professional regarding your tax strategy and how you want to go about putting together your strategy for 2021. For those that never got stimulus payments, it may be a good idea to file as soon as you can. This way, you will likely get your stimulus payments after waiting (CNBC). The sooner you file, the more likely you will be able to take advantage of the new opportunities and benefits available under the new tax code.
To get a head start on your taxes here is a list of items you can begin gathering:
- Pay stubs
- Mortgage payment records
- Closing paperwork on home purchases
- Receipts for items or services you may want to claim as itemized deductions
- Records on charity giving and donations
- Mileage logs on cars used for business
- Business travel receipts
- Credit card and bank statements to verify deduction
- Medical bills
- 1099-G forms for state and local taxes
- 1099 forms for dividend or other income
Some other important documents to make sure you have include your W-2 and 1099 forms. The deadline to file your taxes this year is April 15th, 2021. For your convivence, here's a copy of our 2021 Tax Planning Guide. To go over your strategy with us, do not hesitate to give us a call! We can be reached at (321) 225-3154 or on our website at https://www.threebridgesplanning.com/. We are here to help!
Sources:
https://www.cnbc.com/2021/01/30/why-to-file-taxes-early.html