how to prepare your 2020 tax return Tag

Tips to Help you Get Ready to File your 2020 Tax Return

Yes, it’s only January and your 2020 tax return isn’t due until mid-April, but that doesn’t mean you should ignore that tax season is officially here. The last thing you want to do is wait until a few days before the deadline to file. Turning your thoughts to your tax return now and creating a plan to help you prepare them reduces a great deal of tax season stress. The key to keeping your stress levels low during tax season is creating a plan of attack. Create a list of specific tasks that need to be completed and determine when you’ll do them. You’ll be amazed how much a solid plan of attack smooths out the process of filing your 2020 tax return.

Gather Your Paperwork

Spend the second half of January and the first half of February gathering up all the paperwork you need to complete your 2020 tax return. The paperwork you need to have on hand before you’re ready to start preparing your tax return includes:

• W2s
• Documents that indicate itemized expenses such as child care, medical insurance, and educational costs
• Any 1099s connected to freelance contractors you hired throughout the year
• Donation receipts
• Mortgage interest payment documents
• An itemized list of business expenses (if relevant)
• Investment statements
• Receipts for any tax-deductible purchases you made throughout the year