Getting Ready for Tax Season 2020

Getting Ready for Tax Season 2020

Did the COVID-19 pandemic impact your finances in 2020?

If so, you are not alone. Many Americans experienced unprecedented losses and financial strain as many companies reduced their workforce to avoid serious cash flow issues.

Many were temporarily laid off, while others had to deal with unexpected pay cuts due to the pandemic. 

During this season of financial hardship, any extra income is a welcome move.

For millions of Americans and especially those who do not owe the Internal Revenue System (IRS), this particular tax season is very exciting as they will receive their yearly windfall.

Ideally, you should receive your tax refund in 21 days if you file electronically but if you opt for a paper tax return, you may receive your refund a little later due to COVID-19 mail delays. 

If you are eagerly waiting to file your tax return so that you can receive your tax refunds, be sure to check out Raise and find out how you can conveniently prepare your tax documents virtually and quickly from the comfort of your home. 

Here are 4 tips that will help you get ready for the tax season.

Organize All Your Documents and Financial Records

The first thing you will need to do is to organize all your documents and financial records so as to make your filing process easier.

You can look for your previous years’ tax returns and use them as a guide to determine your previous deductions and credits filed. Referring to previous years’ tax returns will ensure that you have all the necessary documents required for this year’s tax returns. 

Decide If You Will Do It Yourself or Hire A CPA

Once you have gathered all your documents, determine whether you will hire a certified public accountant or you will file them by yourself. If you are using online tax software, you can file the returns by yourself since the process is very straightforward. 

However, if you are a freelancer or you run a small business, it is advisable that you consult with a certified public accountant so that he can advise you on possible tax returns and also help you keep your books in order just in case the IRS comes knocking on your door one day to audit your taxes. 

File Your Tax Return Electronically

Filing your taxes online has some key benefits as compared to sending your returns through the mail. Since the COVID-19 pandemic started, revenue departments are advising customers to file their taxes electronically to avoid delays from paper filing.

When you file your return electronically, you will also get an acknowledgment from the IRS stating that your return has been received. The IRS does not send acknowledgments for paper returns. 

Double-Check Your Tax Return Prior To Submission

Remember to double-check your tax return and correct any errors before you finally submit your return.

Remember, if the IRS finds problems with your return, they may delay processing your tax refund. Check if you have indicated the correct date of birth for yourself and your dependents.

Confirm if your name is spelled correctly on the form. Double-check identification numbers such as social security and taxpayer identification numbers. Don’t forget to electronically sign your return before submitting the e form.