2021 Tax Preparation Checklist: What to Gather Before Filing

Tax season has arrived. Whether you’re filing your own taxes or using a tax preparation service, gathering all the needed documents beforehand will be very beneficial.

In this blog, I’m going to share a helpful tax preparation checklist.

1. Personal Information
   • Check all personal data. For instance, name, address, and social security number should reflect correctly in all tax documents.
2. Income Verification
   • Gather all documents that verify money earned in 2020:
     • W-2s
     • 1099 Forms
     • Social Security Benefits
     • Investment Income (Forms 1099 -INT, -DIV, -B, etc)
     • Distributions from an HSA, MSA or disability payments (Form 1099-SA)
     • IRA/Pension Distributions (forms 1099-R, 8606)
     • Miscellaneous Income—jury duty, gambling winnings, Medical Savings Account (MSA), scholarships, etc.
     • In addition, if you received unemployment benefits due to the pandemic, you should have a 1099-G form.
3.  Deduction Qualifications
   • You may qualify for deductions, that may lower your taxable income. Examples of possible deductions may include:
     • Retirement Account Contributions
     • Educational Expenses
     • Property Taxes and Mortgage Interest
     • Charity Donations
     • Adoption Costs
     • In addition, medical and dental costs are possible deductions you may include.
4. Stimulus Tax Notification
   • This is the notice that confirms you received the pandemic stimulus. If you did not receive the stimulus check, work with your tax preparer to help you claim it in the Recovery Rebate Credit, if you qualify.
5. Bank Information
   • Consider providing your bank account information to receive your refund.  One of the benefits of direct deposit is you are likely receive your refund sooner.

In conclusion, filing taxes can be overwhelming, especially during a pandemic.  There are a variety of services to help meet your tax filing needs. If you have questions about your finances, like budgeting, reach out to Apprisen for a free financial review.