Essential Steps for a Successful 2020 Tax Filing

As we gear up to gather all the receipts, forms, and spreadsheets to prepare for filing our 2020 taxes, it’s easy to feel overwhelmed. If there was a caffeine write-off or a way to claim your dog as a dependent… we would find a way.
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Here are some tips and resources on how your 2020 tax filing season can be stress-free!

O R G A N I Z E

​Take time to organize your tax documents and financial records, which can make the actual filing process faster and easier. Use your prior year’s tax return to serve as a starting point to determine your previous income, deductions, and credits reported. Everyone’s situation is different, but here is a list of the most common forms and records you’ll need
 
-W2 Statements
-1099-NEC or 1099-K Forms
-Dividend Income (1099-DIV) and Rental Income (1099-MISC) Forms
-Mortgage Income Statement Real Estate Taxes
-Stimulus Payment Records
-Expense receipts (can be anything from milage reports, supplies, business lunches, office rental space, etc.)

For more information on how you can find more record resources, check out this article from Taxslayer.

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USE
​YOUR RESOURCES

You have so many options when it comes to filing your taxes, and the IRS website is a great place to start. Check out their article on where to find resources here. If you want a step-by-step guide to slay this beast yourself, check out this article from credit.com

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DON’T BE LATE – BUT IF YOU ARE, HERE’S WHAT TO DO

​​If you can’t get your federal return filed before taxes are due, you can usually get extra time by filing an extension with the IRS. You’ll need to file Form 4868 and pay any amount you owe by the tax filing deadline. As long as the IRS accepts your request, you will have six extra months to file your return for the tax year.
 
If you don’t file for an extension, you will owe a fee. It is usually 5% of the tax owed for each month, up to 25%. You will also owe interest on your late payments, at a rate of one-half percent (0.5%) per month, up to 25% of the unpaid tax balance. 

Source: Taxslayer.com

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IF YOU DON’T WANT TO DO IT YOURSELF, USE GTC!

​Luckily, GTC are the experts in preparing all the information and documentation needed to get the job done. It’s a seamless process that runs like a well-oiled machine. From receipt and spreadsheet organization to our accountant courier services, we will boost your filing efficiency and make each piece of information, count.