Timothy Barry | December 27, 2019
The final days of 2019 are upon us and with that—tax filing season has officially begun! We may want to take a few days (or weeks) to get back to normal after the holiday rush of activity, but sooner is always better than later when it comes to tax filing preparation.
And with that, here are a few suggestions to stay a step or two ahead of the upcoming season.
- Make things a little easier by having a copy of your 2018 tax return by your side when working on your 2019 return – much of the information will be the same, so why “reinvent the wheel” each year. Taxpayers can also visit “View Your Tax Account” on www.IRS.gov to obtain key information from their current tax year return as originally filed, but you must verify your identity if using this tool.
- If you’ve moved during 2019, notify the IRS by mailing IRS Form 8822 (Change of Address) to the address listed on the form.
- Notify the Social Security Administration (SSA) if your name has been changed due to marriage or divorce so that the new name matches IRS and SSA records. Also, tell the SSA if a dependent’s name has changed; a mismatch between the name on a tax return and SSA records often results in refund delays.
- Taxpayers with expiring Individual Taxpayer Identification Numbers should submit their renewal application ASAP to avoid refund delays. An ITIN is a tax ID number used by taxpayers who don’t qualify for a Social Security number. FYI; any ITIN with middle digits 83, 84, 85, 86 or 87 will expire at the end of 2019.
- Charitable contributions are deductible in the year made, so mail those checks by December 31 to be eligible to deduct the donation on your 2019 return. Donations charged to a credit card before the end of the year count towards itemized deductions for 2019 even if you don’t pay the bill until 2020.
- Most workplace retirement account contributions should be made by the last day of the year, but you can make 2019 IRA contributions until April 15, 2020. For 2019, total contributions to all traditional and Roth IRAs cannot exceed $6,000; for taxpayers age 50 and older, the contribution limit is $7,000. Check with the IRS at the web address above for more information about contribution limits as well as cost-of-living adjustments affecting pension plans and other retirement-related items.
As has been the norm for many years now, most taxpayers file electronically and have refunds direct deposited. It’s a simple, safe and secure method, so if you’re still using snail mail to file and watching the mailbox for a refund check, consider switching to be more automated.
Even though the IRS issues most refunds in less than three weeks, each tax return is unique so don’t be alarmed if it takes your refund longer to arrive. Some require additional review, some may have errors, others are incomplete, etc. The IRS contacts taxpayers by mail – never by phone – when more information is needed.
Happy New Year and happy returns!
