So, you have today off.  And, don’t give me any garbage that you are going to visit your family.  Not happening.  This is a pandemic.

There’s really nothing else to do, given the lockdowns. Which makes today a great day to create your folders, to arrange all your tax documents.

Nowadays, many of your items are available electronically- so there’s no need to wait for a paper copy to arrive by snail mail.  And, we suggest you put 10 pages into this folder- which can be a paper folder or an electronic one.    (If you are using paper,  different colors work best so you can keep things organized- or you can use divider tabs.)

#1.  A list of all W-2’s you should be getting.  One from each employer from which you received a pay check.

# 2.  A list of all 1099 NEC’s you will be getting from your gig activities- consulting, driving an Uber, providing services, etc.  (The NEC is new this year- only for non-employee compensation.)

#3.  If you are a landlord, a farmer, a real estate broker, then you will also be getting 1099-MISC’s.  Put those documents in this folder (or directory).  Arrange them by box numbers.

# 4. A list of all financial industry 1099’s  (these are INT or DIV) you will get from every bank account that pays interest, dividends from mutual funds and stocks, stock sales, and mutual funds (typically reporting capital gains and dividends).

# 5.  A roster of all the K-1’s you will get from partnerships, S entities, LLC’s, REIT’s, etc.

# 6.  A list of all 1099R’s and W2P’s  for all pension, retirement funds, withdrawals from IRA’s, and 401(k) distributions.

# 7.  A list of all 1099’s you will get for any unemployment checks, Social Security benefits, and state income tax refunds.

# 8.  A list of 1098’s received for all mortgage payments.  These should also list the property tax paid for each property.  (If you pay those taxes directly, go to your county/city website and download a record of all payments made this calendar year.)

# 9.   A list of all dates you were away from home on business so the per diem deductions can be determined.  (If you spent the night in a hotel, this is where these should also be recorded.)  I’m guessing there haven’t been too many due to the pandemic of 2020.

# 10.  A list of any IRA or 401(k) contributions made during the year.  This is also where you should write down how much that contribution you’ll be making before you file your taxes.  (It is the maximum allowed by law, right?  And, if you don’t have an IRA,  you do know that you can start and fund one up until the 15th of April- the filing deadline.  Don’t forget!)

# 11.  A list of all estimated tax payments made to the Federal government and to your state taxing authority during the year.   (The normal deadlines is 15 April, 15 June, 15 September, and 15 January- of the next year.)

#12.  The rental payments you received on your rental property (if any).  Plus expenses such as repairs, maintenance, supplies, insurance, condo fees, etc.  Don’t forget to include your mortgage interest and real estate property tax.

Having these lists- and then crossing off each item when you receive or download them- will make it clear when you are able to begin processing your 2020 tax returns.

Oh- and we won’t be able to file until 27 January.  (Anyone else but me recognize that this date is getting later and later each and every year?)

 

 

To those so include- Merry Christmas.  To those that also add this- Happy Kwanzaa.

If you’re Jewish, sorry that today is a fast day.  Gorge tonight!