Connect with us

Hi, what are you looking for?

News

TAX TIPS: Preparing to file your return (part 1)

By Rosalyn Partin, Manchester H&R Block

In less than one month we will be in a new year. With the new year comes the tax filing season for 2021 returns.  Planning ahead can help you file an accurate return and avoid processing delays that can slow your tax refund. Here are steps you can take now to make sure your tax filing experience goes smoothly in 2022.

First, have a place to collect your tax documents as they arrive. By having a set place to keep your documents, you will minimize the risk of losing important information. Also make sure you begin checking any accounts that are set up for paperless reporting such as investment or retirement accounts. When your tax form is available online, we advise that you print it and put it with your other forms or save it in a designated 2021 tax folder on your computer.

Second, make a list of the document you expect to receive. Documents you should receive shortly after the first of the year are: W2s from employers, 1099s from issuing agencies such as banks, retirement accounts, investment accounts, unemployment, 1099-MISC and NEC from payers of self-employment income and other income. You should also watch for statements related to potential tax deductions such as 1098 from your mortgage company, 1098-T for tuition paid from universities and vocational schools, 1098-E for student loan interest, child care payment receipts or statement, charitable contribution receipts or church giving statements, etc. Also, those who purchase health insurance through the Federal Marketplace must have their form 1095-A which will be posted to the online marketplace account.

Advertisement. Scroll to continue reading.

In January, IRS will begin sending out letters to taxpayers reporting payments made during the year. Letter 6419 will report the total Advance Child Tax Credit Payments and Letter 6475 will report the 3rd Economic Impact Payment sent out by IRS. These letters should be kept safely in your tax document file since they will be used to reconcile payments on your 2021 return.

If you have not set up an Online Account with IRS, you may want to set up one now through ID.me. By having an online account, taxpayers can securely access the latest available information about their federal tax account. To set up an online account with IRS, go to the IRS website at irs.gov and select “Sign In to Your Account”.

If you have questions about documents needed to file your 2021 tax return, please call H&R Block at 931-728-9462. H&R Block Has Your Back!

Advertisement. Scroll to continue reading.

You May Also Like

News

The 2023 Old Farmer’s Almanac is telling “A Tale of Two Winters.” On sale everywhere August 30, the newest edition of North America’s most trusted...

News

UPDATE: 10:05pm — Coffee County Sheriff’s Department authorities have identified the suspect in this case as a 16-year old from Franklin County and state...

News

Manchester Police are asking for the public’s help to locate a Manchester man who has been reported missing by his family. According to MPD,...

News

 Dot Foods, Inc., North America’s largest food industry redistributor broke ground Thursday (Aug. 25, 2022) on the company’s 13th U.S. distribution center, which will be located...