Preparing to File Your 2019 Federal Income Tax Return
With tax season only a few months away, the IRS has begun encouraging taxpayers to begin taking certain steps to ensure that their 2019 returns are processed as smoothly as possible. This includes adjusting tax withholding, making estimated tax payments, and gathering documents and tax records, all of which can be difficult, especially for those with complex financial situations. If you have questions or concerns about preparing your own federal income tax return, it is important to contact experienced Florida tax return preparation attorney Ronald Cutler who can advise you.
Adjusting Tax Withholding
Taxpayers who are preparing to file this year’s return should consider performing a paycheck or pension income checkup. This is particularly important for those who:
- Received a smaller refund than expected last year;
- Owed an unexpected tax payment last year; or
- Experienced a key life event, such as getting married or divorced, buying a home, starting college, retiring, or having a child.
In the event that the current amount being withheld from a taxpayer’s paycheck is incorrect, the employee should submit a new Form W-4 directly to his or her employer. Pension recipients or taxpayers who receive annuity income, on the other hand, will instead need to complete Form W-4P if their withholding amount needs to be recalculated.
Taxpayers who earn non-wage income, including those who are self-employed or who collect investment income, are also encouraged to begin making quarterly estimated tax payments and to account for that income when adjusting their withholding amount.
Gathering Documents and Organizing Tax Records
Taxpayers are also encouraged to develop a record keeping system, whether electronic or on paper, which ensures that important tax-related information is kept in one place. Important documents include copies of filed tax returns and supporting documentation for the last three years, such as:
- Year-end Form W-2s from an employer;
- Forms 1099 from banks;
- Income-related documentation;
- Records of any virtual currency transactions; and
- Forms 1095-A for taxpayers who are claiming the Premium Tax Credit.
Having access to complete and timely records can help ensure that taxpayers have a better chance of filing a complete and accurate return. Furthermore, gathering all year-end income documents can prevent taxpayers from forgetting key documents, which in turn, will help them avoid having to file an amended return.
Renewing Expired Tax Identification Numbers
Taxpayers who are preparing their 2019 tax returns and who have expiring Individual Taxpayer Identification Numbers (ITINs) should be sure to get those numbers renewed as soon as possible. ITINs are tax ID numbers that are used by taxpayers who don’t qualify for a School Security Number. However, these ITINs expire if not used on a tax return in the past three years or if they have middle digits of 83 through 87. These numbers can be renewed by completing a Form W-7 application and submitting it with all required identification and residency documents. Taxpayers who fail to take this step could face a delayed refund or be found ineligible for certain tax credits.
Schedule a Free One-on-One Consultation Today
To speak with a dedicated tax return preparation lawyer about filing this year’s tax return, please call Ronald Cutler, P.A. at 386-490-9949 today.