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Tips For Preparing Your 2020 Tax Documents

Posted by Sweeney Conrad, PS on Jan 28, 2021 10:49:33 PM

PapersThe time has come to start thinking about those 2020 taxes. At this point, tax documents have probably started showing up in your mailbox. While it may seem like there is plenty of time, the sooner and more organized you can make your documents, the smoother the process will be.

Just like last year, we thought it might be helpful to create a checklist for easy organizing of your documents that will help to streamline the process for your accountant:

    • Make sure to fill out the questionnaire located towards the front of the organizer at a minimum.
    • Update your address, phone and email address as necessary.
    • Original tax documents are preferred to copies or photos.
    • Provide one copy of your 1099's. You can keep any duplicate copies.
    • Do not use highlighters on your tax documents.
    • No need to tear apart tax documents if they are perforated, just keep them together.
    • Avoid post it notes. Write notes and questions on a separate piece of paper or on the tax organizer.
    • If you are grouping documents together, avoid stapling and taping them; this will make it easier when your documents are being scanned.
    • For charitable deductions, make sure to send us the thank you letters and donation receipts for donations over $250. You can summarize donations less than $250.
    • If you are summarizing your medical expenses, do not send us the receipts, just keep them in your files.
    • If you are summarizing your expenses for Schedule C or your rental, do not send us the receipts.
    • Stack all supporting documents behind the organizer. They do not need to be organized within the organizer.
    • When in doubt, send us the document. Your accountant will review and determine if it needs to be included in your tax return.
    • Last but not least, please contact us if you have any questions.
Getting all of the necessary documents together to help your accountant, can be overwhelming. We are here to help! Don't hesitate to reach out if you have any questions.

Topics: Tax

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