As you get ready to file your 2020 tax return, you should start by gathering your records.
Gather all year-end income documents to help ensure you file a complete and accurate 2020 tax return and avoid refund delays. You should have all necessary records handy, such as W-2s, 1099s, receipts, canceled checks and other documents that support any income, deductions or credits on your tax return.
Most taxpayers should have already received income documents including:
- Forms W-2, Wage and Tax Statement
- Form 1099-MISC, Miscellaneous Income
- Form 1099-INT, Interest Income
- Form 1099-NEC, Nonemployee Compensation
- Form 1099-G, Certain Government Payments; like unemployment compensation or state tax refund
- Form 1095-A, Health Insurance Marketplace Statements
Here are a couple other things you can do to prepare to file.
Sign up for and view your IRS account online
You can view your online account. This will allow you to see the latest information about your federal tax account and most recently filed tax return through a secure and convenient tool on IRS.gov.
If you have an account on IRS.gov can also see the amounts of your Economic Impact Payments, which you will need to provide to your tax preparer.
Review unemployment benefits
Unemployment compensation is taxable and must be included as gross income on your tax return.
If you received unemployment compensation, you should have received Form 1099-G. If you did not have federal income tax withheld from your unemployment payments, you may see a smaller refund than expected or possibly have a tax bill.
If you received a Form 1099-G for unemployment compensation but did not apply for unemployment you need to contact your state tax agency and request a corrected Form 1099-G.
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