One thing that is certainly true about the current pandemic is that we are home a lot more than usual. You may have been working from home considerably more time than you ever did before, and you may have binge-watched more television than you ever thought possible. Well, now that this tumultuous, challenging year is coming to a close, you might want to view this extra time at home as an opportunity to get the jump on your 2020 tax return.
There are many of us out there who budget a tax refund as part of our budget in the new year. Yet, this year, with the CARES Act, and the Economic Tax Payment (that $1,200 stimulus check you may have received), your tax picture may be a little different than in other years.
So, in this article, we are going to talk about some steps that you can take to get a head start on your taxes. If, after reading this article, you would like to discuss your own tax situation, we invite you to call the Florida tax refund attorney, Mary E. King, P.L.
The Law Office of Mary E. King, P.L. can make sure that your tax issues are resolved efficiently and at the lowest cost to you. Please fill out our online contact form, or call us at 941-906-7585 today.
Making Your Tax Filing Easier Next Year
There a few important steps that can make filing your taxes and figuring out your possible refund a lot easier. With a little organization ahead of time, you might find that there is a deduction or credit of which you can take advantage.
1. Get your tax records together
Gathering all the facts is the way to begin any process, and in this case, all the facts are all your tax records. Those include:
1. Your W-2 forms, from your employers
2. Your 1099 forms, usually from banks and other income providers
3. Any other documents, showing your income over the year.
4. Notice 1444, which is the proof of the Economic Tax Payment you may have received (though that is not necessarily included as income for tax purposes, you still should have the proof that you received it).
2. Make a list of any personal changes over the year that the IRS should know about
If you changed your address, you will want to notify the IRS. That can be done by calling or filing a Form 8822 with the IRS. Yet, since tax time is coming around the corner, you can simply use your new address when you file your tax return.
If you have legally changed your name, then that is something you will want to tell the Social Security Administration about. Be sure to do that so the name on your tax return is appropriately connected to the Social Security number you use on your tax return.
3. Do not forget about all types of income this year
Many people in 2020, because of the pandemic, received unemployment benefits. It is important to remember that unemployment income can be considered taxable income. Also, interest on any tax refund you received (which in 2019 was an average of $18) is taxable income if it is $10 or more. That kind of income is reported on a Form 1099-INT, which the IRS will send to you.
Also, any income you made from a side/freelance job, like driving for Uber or Lyft is taxable. Finally, any income from a virtual currency transaction would likely be taxable.
4. Check if you should have, but did not receive the Economic Impact Payment
If you should have received the $1,200 Economic Impact Payment and should have; or if you received the payment but it was less than $1,200 (plus $500 for each qualifying child), then you might be eligible for a Recovery Rebate Credit. It might be a good idea to consult with an experienced tax attorney about the deductions and credits that may be available to you in this unusual tax year.
5. It might be tough to depend on the timing of your refund
If you will be getting a refund in 2021, that is great. However, you may not want to rely on getting your refund at a certain time. Though the IRS issues the large majority of refunds in fewer than 21 days, you should not depend on that timing to pay bills or make a purchase. It is always a better practice to view your refund as extra money that comes your way, not income to rely on by X date.
Consult with a Sarasota Tax Refund Attorney Today and Get the Help You Need
Having a Sarasota tax refund attorney at your side to advise you on options and strategies for your tax returns this year is worth its weight in gold.
Consider reaching out to the Law Offices of Mary E. King to help. Tax matters can be complicated, and thus, it is always helpful to have someone in your corner who understands the tax law and deals with the IRS on a regular basis. Indeed, beyond just the stimulus payment from the IRS, there could be other issues with which a seasoned tax attorney can help.
So, when it comes to dealing with tax relief and tax litigation, you need to talk to a Florida tax planning attorney who can help. Mary E. King has spent her career concentrating in tax law and can help you with tax scams in Florida and elsewhere. Attorney King has a wealth of information about what types of options would make the most sense for you and your business.
That helps explain why she’s received an A+ rating from the Florida Better Business Bureau. If you have a tax related issue – no matter how small or how large – setting up an initial consultation with Mary E. King, tax lawyer of Florida, is the first step you should take towards relief.
The Law Office of Mary King P.L. offers complete IRS problem solving services including all areas from tax debt settlement to planning the most efficient tax strategy for individuals and businesses. Call us today to schedule an initial consultation. With years of experience as a tax lawyer in Sarasota for many clients, Attorney Mary E. King can make sure that your tax issues are resolved in your favor. Fill out our online contact form, or call us at 941-906-7585. Remember, at the Law Office of Mary E. King, we are focused on solving your tax issues for good.