Do you have all your documentation?
Being organized helps your tax preparer. You should wait to file until you have all your supporting documents, which may include:
- Forms W-2 from employer(s)
- Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends and distributions from a pension, annuity, or retirement plan
- Form 1099-K, 1099-Misc, W-2 or other income statement if they worked in the gig economy
- Form 1099-INT if they received interest payments
- Other income documents and records reporting virtual or crypto currency transactions
- Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance Premium Tax Credits for Marketplace coverage
- Letter 6419, 2021 Total advance Child Tax Credit Payments to reconcile advance Child Tax Credit payments
- Letter 6475, 2021 Economic Impact Payment, to determine eligibility to claim the Recovery Rebate Credit.
Also review the information on your tax documents for accuracy. If you notice any discrepancies, contact the document provider right away to correct the issue.
Do you qualify for credits or deductions?
The IRS has comprised a list of credits and deductions you may quality for. As always, talk with your tax preparer if you are unsure.
- Here is the list and eligibility rules for individuals: https://www.irs.gov/credits-deductions-for-individuals
- Here is the list and information for businesses: https://www.irs.gov/credits-deductions/businesses
NOTE – even if you are not required to file a tax return, the IRS recommends eligible individuals to file one this year to potentially claim the Recovery Rebate Credit, Child Tax Credit, and Earned Income Tax Credit.
The IRS can provide resources to assist.
- Visit https://www.irs.gov/help/tax-law-questions for help and information.
- Visit IRS Free File to learn if you quality for free preparation services, https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free