SAN DIEGO - March 30, 2020 - (Newswire.com)
2020 tax season is officially in full swing. Steve Sexton, founder of the Southern California independent financial services company Sexton Advisory Group, is hoping to ease much of the stresses associated with tax filing by offering some helpful tips to prepare for tax filing this year.
- Know updated deadlines. Due to the COVID-19 pandemic, the IRS has postponed the April 15 income tax filing date to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.
2. Choose the right tax preparer. Sexton advises working with a tax preparer who has a Preparers Tax Identification Number, which indicates they are authorized to prepare federal tax returns. He also recommends comparing multiple tax preparation rates to ensure you are paying reasonable rates for the complexity of your tax return.
3. Schedule your appointment sooner, rather than later. “If you expect a refund, the sooner you file, the sooner you’ll receive your refund. Scheduling your tax return after April 15 could cause you to miss out on the opportunity to lower your tax bill by making a contribution to your IRA or Health Savings Account,” says Sexton.
4. Prepare the necessary documents.
· Form W-2, if you are employed
· Form 1098: reports mortgage interest paid
· 1099-Div: reports income received such as dividends
· 1099-Int: reports interest received
· 1099-Misc: non-employee compensation paid to independent contractors
· 1099-B: reports gains and losses on securities transactions
· K-1: reports income, loses and dividends from business partnerships or S corporation Shareholders.
5. Organize receipts. Standard deductions for 2019 was $12,200 per person. If your itemized deduction exceeds the Standard Deduction, you will pay less in taxes. “Don’t forget medical receipts and charitable contributions,” says Sexton.
6. Contribute more to your IRA. “If you haven’t reached the maximum contribution for your IRA or 401k, consider contributing more prior to filing your taxes. Every dollar you contribute to these accounts is a dollar you don’t have to pay taxes on,” recommends Sexton. “Right now, there’s a lot of talk surrounding the coronavirus and its impact on the markets. If you’re far from retirement age, don’t panic – we can expect the market to self-correct. If you’re contributing to your 401 every pay period, you now have the opportunity to buy mutual funds at a discount – meaning for the same 401k contribution, you can accumulate more shares than the previous month. While the market is in a downturn, it makes sense to contribute as much as you can to your 401k right now.”
For more information, please visit https://www.sextonadvisorygroup.com
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Original Source: Sexton Advisory Group Shares Top Tips for 2020 Tax Prep