Gather your tax records. It helps to discover any missed 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.
- Notice 1444 Your Economic Tax Payment with your tax records, if you received an Economic Impact Payment.
Remember, most income is taxable. This includes:
- unemployment income,
- refund interest,
- income from the gig economy, and
- virtual currencies.
Ensure your Individual Tax Identification Number (ITIN) 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 Form W-7, Application for IRS Individual Taxpayer Identification Number to renew your ITIN.
Make sure the right amount of tax has been withheld from your paycheck.
Consider estimate tax payments. 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.