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IMPORTANT TIPS YOU SHOULD KNOW!
Have your records organized to make preparing a tax return easier. It may also help you discover potentially overlooked deductions or credits.
Include in your tax records:
Forms W-2 from employers
Forms 1099 from banks and other payers
Other income documents and records of virtual currency transactions.
Include your Notice 1444 Your Economic Tax Payment with your tax records if you received an Economic Impact Payment.
Notify the IRS if your address changes and notify the Social Security Administration of a legal name change.
Remember, most income is taxable. This includes:
income from the gig economy, and
Make sure you've withheld enough tax
Use the Tax Withholding Estimator to help you determine the right amount of tax to have withheld from your paycheck. This tool on IRS.gov will help determine if you need to adjust your withholding and submit a new Form W-4 to your employer. Consider estimated tax payments. If you receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income you should make quarterly estimated tax payments, with the last payment for 2020 due on Jan. 15, 2021. Payment options can be found at IRS.gov/payments.