Steps to Take Now to Get a Jump on Your Taxes
Gather your tax records
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 recordsView your account informationaddress changesSocial Security Administration
if you received an Economic Impact Payment.
to see information from your most recently filed tax return.
Notify the IRS if your
and notify the
of a legal name change.
Remember, most income is taxable. This includes:
- unemployment income,
- refund interest,
- income from the gig economy, and
- virtual currencies.
Check your Individual Tax Identification Number (ITIN)
Ensure your Individual Tax Identification Number (ITIN)Form W-7, Application for IRS Individual Taxpayer Identification NumberFormulario W-7 (SP), Solicitud de Número del Identificación Personal del Contribuyente del Servicio de Impuestos Internos
hasn’t expired before you file a tax return in 2021. If you need to file a tax return in 2020, IRS recommends you submit a
, or
, now to renew your ITIN. As a reminder, ITINs with middle digits 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, or 87 that expired in 2016, 2017, 2018, or 2019 can also be renewed.
Make sure you’ve withheld enough tax
Use the Tax Withholding EstimatorConsider estimated tax paymentsIRS.gov/payments
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.
. 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
.
What’s new and what to consider when you file in 2021
Recovery Rebate Credit
You may be able to claim the Recovery Rebate Credit on your Tax Year 2020 Federal income tax return if you met the eligibility criteria in 2020 and:
- You didn’t receive an Economic Impact Payment, or
- Your Economic Impact Payment was less than $1,200 ($2,400 if married filing jointly for 2019 or 2018) plus $500 for each qualifying child you had in 2020.
- For additional information about the Economic Impact Payment, visit the Economic Impact Payment Information Center.
Refund interest payments
If you received a federal tax refund, you may have been paid interest. Interest payments are taxableForm 1099-INT
and must be reported on your 2020 federal income tax return. In January 2021, the IRS will send a
to anyone who receives interest totaling at least $10.
Refund timing
Although the IRS issues most refunds in less than 21 days, the IRS cautions taxpayers not to rely on receiving a refund by a certain date
, especially when making major purchases or paying bills. Some returns may require additional review and may take longer. For example, the IRS, along with its partners in the tax industry, continue to strengthen security reviews to help protect against identity theft and refund fraud. Additionally, refunds for people claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) can’t be issued before mid-February. The law requires the IRS to hold the entire refund − even the portion not associated with EITC or ACTC. This law change, which took effect in 2017, helps ensure that taxpayers receive the refund they’re due by giving the IRS more time to detect and prevent fraud.
Download publications
Publication 5348, Get Ready to File PDFPublication 5349, Year-round tax planning is for everyone PDFPublication 5136, IRS Services Guide PDF
Follow these tips to file your federal tax return.
Guidelines to plan ahead for filing your taxes.
