Q: Help! What do I need to do to file my taxes?
A: Because the IRS has extended the tax filing deadline from April 15 to July 15, you have some more time. Here’s what you need to do:
- Locate copies of last year’s federal and state tax returns. It’s always easiest for you or your tax professional to prepare a return with the information from the previous year.
- Gather all of your 2019 official tax documents such as W-2s, and 1099s.
- Any major events since last year? Births, marriages, kids moved out–all of these can impact your filing status and deductions.
If you are filing a straightforward return and don’t itemize deductions, you probably have everything you need right now to get started. You also have time to make your 2019 Traditional IRA contribution and take advantage of the deduction because that deadline has changed to July 15 as well. However, the new rules for those age 70 ½ or older on making IRA contributions or taking mandatory distributions, which were recently enacted in the “Secure Act,” will not take effect until 2020 returns.
If your return is more complicated, or you itemize, then you will need additional documents and receipts, such as property or state income tax payments, and payments to charitable organizations.
Medical deductions will only be available if you have very large medical bills not covered by insurance, totaling in excess of 7.5 percent of your adjusted gross income.
Congratulations if you end up with a refund! Don’t forget to put in your correct direct deposit information on your return so you can get those funds as quickly as possible, and contact your employer if the refund is due to over-withholding so you can adjust that as soon as possible.
There is plenty of excellent tax software available to help. Good luck and Happy Filing!
Contact Melissa Knutson to learn all that Alpine Bank Wealth Management can do for you. Call her at 877-808-7878 or email her here.
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