The end of 2019 is just a few days away and the tax deadline closing-in as much faster. Taxpayers still have a few days left to run some tax errands and prepare for filing their taxes in 2020. Here is a list of few things which you can do before 2019 ends to be better prepared for filing your returns.
Donate to charity
For those of you who are planning to itemize their deductions, they still have time to donate to charity in 2019. A point to keep in mind here is that the slab for a standard deduction has increased, which might require you to put a considerable amount to charity for receiving tax breaks or benefits for the same.
Report any change in address
If you are one of those taxpayers who moved around the city or state during 2019, need to ensure to communicate your change of address to the IRS and the Social Security Administration. Since, IRS or the Social Security Administration might get in touch with you over mail at the registered address, its prudent to be proactive and report such change first hand. Not doing so might lead to your confidential data to be sent to a stranger at your older address which might cause future hiccups.
Renew expiring ITINs
ITINs stands for Income Tax Identification Numbers which are usually owned by taxpayers not eligible to receive a Social Security Number in the United States. As communicated by us, many ITINs are due to expire in 2019. Therefore, all of you shall get your ITIN expiry checked and renew your ITINs. It is advised you visit the IRS website or read MyTaxFiler’s older publications for more details on expiring ITINs.
Be active on social media channels
The MyTaxFiler experts and the IRS keep on updating their social media pages about possible tax reforms, updates, scams, and lucrative tips to get a tax break. By being an active follower, you can be in sync with the latest information and make use of the same to reduce your tax liabilities. The Social Media channels of IRS post on languages including English, Spanish, and American Sign English.
Explore all about retirement plans
Another great thing to explore before 2019 ends is end-of-year tax information on retirement plans. There are many knowledge resources available which inform about retirement planning, contributions, withdrawals, etc. Good news for those of your above the age of 70.5 years is that you may still take a required minimum distribution from a traditional IRA, SIMPLE IRA, or SEP IRA. If you are this age or above, then you may have to wait till April 1, 2020, to receive your first required minimum distribution.
Contribute salary for deferrals
You may make a deferral to a retirement plan and doing so can enable you to maximize the tax credit available for eligible contributions. A point to keep in mind is that your total salary deferral contribution shall not exceed the limit set for 2019.
Beware about tax refund dates
Expecting a tax return by a certain might not be a practical choice for you. Just like each tax return is exclusive and unique, the same way every tax refund is too. So, if you are planning to use your refund for a major purchase or paying bills, then relying on a tax refund might not be a practical choice as every refund will have a specific date of release. You can visit the IRS website or get in touch with them to understand steps that might ensure that the IRS processes your tax returns promptly, in the next year.
The Bottom Line
You still have time to take a look at these tax filing tips and execute the relevant once to ease your tax return filing experience in 2020. What can help you handle the fuss and get a break on your taxes is the knowledge about the latest updates and how best you may leverage them to reduce your tax liabilities and witness a good tax filing experience. Ensure to carry out the suggested updates to ease up your 2020 tax filing experience. For more details or to have an expert review on your 2019 taxes, feel free to contact the MyTaxFiler team and get the answer to all your tax related woes.