Tax preparation tips

Forum|Forum|4 years ago
December 22, 2021
40 replies
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It is helpful to get organized before you start preparing your tax return. Let’s review some of the information that you can gather now to save time when working on your taxes.

First, make sure that you have the Social Security numbers and dates of birth for you, your spouse, and your dependents.

Next, gather all documents related to your income from wages, investments, state and local tax refunds, unemployment, alimony (if the divorce was finalized prior to January 1, 2019), business or farming, retirement distributions, rental properties, Social Security benefits, the sale of property, and any other miscellaneous sources.

It is also important to gather information regarding adjustments to your income such as contributions to retirement and pension plans, student loan interest payments, contributions to Medical Savings Accounts (MSA), moving expenses, self-employed health insurance premium payments, alimony payments (if the divorce was finalized prior to January 1, 2019), and educator expenses.

Then you’ll want to collect your information for itemized deductions and credits. This includes child care costs, education costs, adoption costs, energy-efficient home improvement costs, home mortgage interest payments, investment interest expenses, charitable donations, casualty and theft losses, medical and dental expenses, and other miscellaneous tax deductions.

You should also get together any information about the taxes that you’ve already paid. This includes state and local income taxes, real estate taxes, estimated taxes, and personal property taxes.

Lastly, you will need your direct deposit information and any foreign bank account information.

For more details on everything that you will need to quickly and accurately prepare your tax return this year please check out our article, Tax Preparation Checklist.

Advice & Tips

Show previous replies

ccesenag01

I have completed my Federal tax and when I finished my refund was lowered by $1400 after I entered the information requested on the amount received of my third stimulus check, which was $1400. I thought the stimulus checks were not taxed and did not have to be paid back. Please advise

ColeenD3

The stimulus amounts are neither taxed nor repaid. You are reporting that you did, in fact, receive the stimulus and that you do not need it to be added to your return. Many people did not receive it and will have it added to their refund.

VolvoGirl

It is not taxable and you aren't paying it back. Your 2021 return starts out by assuming you didn't get any Stimulus payments so it gives you credit for the full amount and your refund was too high. Then near the end you enter how much you actually got so it only gives you the difference if any. So you don't get it again.

warrendf1

Re: In TurboTax 2021 Premier

Refinance primary mortgage in Dec 2021. Received two 1098s (one in regard to 1st mortgage and another in regard to the new mortgage).

On the 1098 for the loan that was paid off, the mortgage balance is $0.00. However, TurboTax will not let me enter $0.00 as a valid value for Box 2 of the 1098.

Kim5960

I had to re-file my 2020 federal taxes by mail after the IRS rejected my e-filing with TT. The IRS thought there might be a duplicate 1099-R listed on my return. There was not a duplicate 1099-R, so I didn't change anything on my return, which meant that I had to re-file it by mail. I sent in my 1040-SR along with a payment voucher and check for taxes owed. That check cleared the bank about a week later, so I assumed my return was accepted. Now, 8 months later, I just received a Notice CP80 from the IRS saying that they had credited the taxes owed to my tax account, but did not receive my tax return. The instructions said to send "a newly-signed copy" and "be sure to attach copies of all schedules and other documents you included with the original return." Question #1 - do I include the original notice that my e-file was rejected and why, or would that just open up a new can of worms? and, Question #2 - I have since made quarterly Estimated Taxes this past year. Those amounts do not show up in my tax account, just the original taxes owed for 2020. Should I inquire about those now, or wait until this lost tax return issue is resolved? (I hate to 'poke the bear' 😬)

AmyC

1. Your check showed up and was cashed quickly. The return failed to make it where it needed to go within the department. You will need to send everything you sent the first time.

2. Estimated payments made in 2021 are for 2021 so they will not show up for a 2020 return. They should be showing in your account history though. If you are feeling brave,

Payments IRS 800-316-6541

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Kim5960

Thanks, I will send it all again.....but I'm not brave enough to ask about the quarterly est pmts yet. It makes sense that they won't show up with this notice. Once I know they have accepted my return, I'll bring that up. Thanks for the 800 number too!

scurling

I've recently had unusual issues with the IRS, not unlike what you have had.

I don't know what is causing, what I fear is, an increasing number of internal errors.

In the last two years (and I'm 66 yrs old) I've had them miss a full quarter of tax filings, and told me I owed the entire quarter of taxes, even though my bank account showed the IRS receiving the deposits. I still had to prove it to the IRS.

I also received a letter saying the IRS never received my 2020, 1040 filings which I E-Filed. So, I had to send them a paper copy, and the E-Mail receipts for the e-file transmissions to TT and IRS showing they were received and accepted.

So, good luck to everyone...

Bobbitt1945

Im doing my taxes for 2021 and i have an error that I can't get passed. 2

Schedule 8812 Advance payment received must be entered box. its for advance child tax credit pymts received from letter 6419. it's a blue box. I can't get past this problem to complete my taxes until it entered. I didn't enter any child tax credits. nor do I have any but Turbo says it's an error to be fixed. I can't fix it. what can I do?