For the second year in a row, the Internal Revenue Service gave Americans some extra time to get their taxes filed, largely due to the financial effects of the COVID-19 pandemic. The deadline is coming upquickly in mid-May, so if you’ve been procrastinating getting it done, it’s important to make it a priority now.
Here’s a quick checklist for you to follow to make sure you’ve covered all your bases.
- Review and sign all documents: It’s important you carefully review and sign all of the documents you need to turn in. If you and your spouse are filing a joint tax return, you’ll need to both sign. If filing through an online service, you’ll be able to e-sign, which should help expedite the process.
- Check for deductions or exemptions: Since the tax code changes of a few years ago, even more people than ever opt for the standard deduction over itemizing their taxes, but it’s still worth your while to check for deductions you may be able to benefit from. These include childcare expenses, student loan interest, personal contributions, home improvement expenses, home office expenses and many more.
- Double check your personal information: It’s important to make sure all of your personal information is correct. This is one of the most common reasons people get audited or have other issues with their taxes arise—because they failed to put in the proper information for people listed on their tax return. Double check all Social Security numbers, names, bank account information for direct deposit, etc.
- Check your filing status: Double check to make sure you’re using the correct filing status for your tax return. Chances are you will use the same status as last year, but if you were recently married or divorced or had othersignificant changes to your life or finances, you might consider changing your filing status.
- Contribute to retirement accounts: Contributions to certain types of retirement accounts like IRAs can help you offset some of your tax burden. Don’t forget to make those contributions before you file your taxes so you can reap the benefits.
- Actually submit!: Most importantly, make sure you actually submit all your paperwork. It’s not unheard of for people to take care of all the tasks needed for preparing taxes but then forget to actually file the paperwork with the IRS. Make sure you get everything in, whether it’s digitally or via the mail, by the filing deadline.
For more last-minute tax prep tips, contact us at MCG Solutions.