Page 32 - BusinessWest February 3, 2021

A Tax-planning Checklist
Take Some Steps Now to Make Filing Your Return Easier
By Dan Eger
It is that time again, your favorite and mine, tax season!
As we have made it through hopefully
the worst of the pandemic, dealing with all the ups and downs of learning this new normal in life, one thing will remain the same — the IRS still wants our money. At some things have not changed due to COVID-19.
Here are some steps to take now to help make filing for the 2020 tax season easier. Below is a list of items to gather. These are the most common required forms and items. The list is not all-inclusive, as everyone’s tax situa- tion is different. Also included are a few other things for you to consider as you prepare to file your 2020 tax return.
Documentation of Income
• W-2 – Wages, salaries, and tips
• W-2G – Gambling winnings
• 1099-Int and 1099-OID – Interest income
statements
• 1099-DIV – Dividend income statements • 1099-B – Capital gains (sales of stock,
land, and other items)
• 1099-G – Certain government payments — Statement of state tax refunds
— Unemployment benefits
“The IRS will never — let me repeat that: NEVER — call you directly unless you are already in litigation with them. They will not initiate contact by e-mail, text, or social media. The IRS will contact you by U.S. mail.
• 1099-Misc – Miscellaneous income
• 1099-S – Sale of real estate (home)
• 1099-R – Retirement income
• 1099-SSA – Social Security income
• K-1 – Income from partnerships, trusts,
and S-corporations
Documentation for Deductions
If you think all your deductions for Sched- ule A will not add up to more than $12,400
for single, $18,650 for head of household, or $24,800 for married filing jointly, save yourself the time required to itemize deductions and just plan to take the standard deduction.
• Medical Expenses (out of pocket, limited to 7.5% of adjusted gross income)
— Medical insurance (paid with post-tax dollars)
— Long-term-care insurance
— Prescription medicine and drugs
— Hospital expenses
— Long-term care expenses (in-home nurse, nursing home, etc.)
— Doctor and dentist payments
— Eyeglasses and contacts
— Miles traveled for medical purposes
• Taxes You Paid (limited to $10,000)
— State withholding from your W-2
— Real-estate taxes paid
— Estimated state tax payments and amount paid with prior year return
— Personal property (excise)
”
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Certified Public Accountants and Business Consultants
413-437-8438 • www.GGAcpas.com
Personal Support and Expert Professionalism
32 FEBRUARY 3, 2021
ACCOUNTING & TAX PLANNING
BusinessWest