[{"@context":"https:\/\/schema.org\/","@type":"Article","@id":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/tax-guide\/#Article","mainEntityOfPage":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/tax-guide\/","headline":"Tax Guide 2020-2021","name":"Tax Guide 2020-2021","description":"It&#8217;s that time of year again: tax season. And whenever tax season rolls around,...","datePublished":"2020-03-02","dateModified":"2022-12-04","author":{"@type":"Person","@id":"https:\/\/moneydoneright.com\/author\/logan-allec\/#Person","name":"Logan Allec, CPA","url":"https:\/\/moneydoneright.com\/author\/logan-allec\/","identifier":4,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Money Done Right","logo":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","width":488,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/tax-guide.jpg","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/tax-guide.jpg","height":460,"width":1900},"url":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/tax-guide\/","video":{"@context":"http:\/\/schema.org\/","@type":"VideoObject","@id":"https:\/\/www.youtube.com\/watch?v=LtInd_n1YKA#VideoObject","contentUrl":"https:\/\/www.youtube.com\/watch?v=LtInd_n1YKA","name":"TurboTax Review 2020 by a CPA | Pros + Cons | Where H&R Block Online Is Better","description":"In this TurboTax review, Logan gives his opinion on the TurboTax software for use in preparing 2019 tax returns due in 2020.\u00a0 Having been a CPA for nearly a decade, Logan has ample experience with all kinds of tax preparation software. \u27a1\ufe0f MY UPDATED TURBOTAX REVIEW FOR 2021: https:\/\/youtu.be\/bx_G-jzAhhk\n\nWhile Logan's opinion of TurboTax is high, he acknowledges that it is expensive, and that there are some definite downsides to the product, particularly for those with simpler tax returns.\n\n\u27a1\ufe0f MY TURBOTAX LINK (NO EXTRA COST TO YOU): https:\/\/moneydoneright.com\/turbotax\/\n\n\u27a1\ufe0f TAX RELIEF: Do you owe the IRS more than $10,000 in back taxes?  Email me at taxrelief@loganallec.com and let me know how much you owe by year.\n\nTABLE OF CONTENTS:\n0:00 What This Video Is About\n0:45 TurboTax Free Edition\n2:20 TurboTax Pricing\n2:48 TurboTax Paid Editions\n5:35 TurboTax User Experience\n15:43 TurboTax and Complex Returns\n16:31 TurboTax App\n17:15 TurboTax Support\n19:38 TurboTax Pros and Cons\n\nFROM THE BLOG:\n\nTurboTax Review:\nhttps:\/\/moneydoneright.com\/turbotax-review\/\n\nH&R Block Review:\nhttps:\/\/moneydoneright.com\/hr-block-review\/","thumbnailUrl":["https:\/\/i.ytimg.com\/vi\/LtInd_n1YKA\/default.jpg","https:\/\/i.ytimg.com\/vi\/LtInd_n1YKA\/mqdefault.jpg","https:\/\/i.ytimg.com\/vi\/LtInd_n1YKA\/hqdefault.jpg","https:\/\/i.ytimg.com\/vi\/LtInd_n1YKA\/sddefault.jpg","https:\/\/i.ytimg.com\/vi\/LtInd_n1YKA\/maxresdefault.jpg"],"uploadDate":"2020-01-22T19:00:04+00:00","duration":"PT21M17S","embedUrl":"https:\/\/www.youtube.com\/embed\/LtInd_n1YKA","publisher":{"@type":"Organization","@id":"https:\/\/www.youtube.com\/channel\/UCQ9WUXlSuLlbi5BLkgtEUEA#Organization","url":"https:\/\/www.youtube.com\/channel\/UCQ9WUXlSuLlbi5BLkgtEUEA","name":"Logan Allec","description":"Logan Allec is a CPA and the founder of Choice Tax Relief, which specializes in helping people with their IRS and state tax debt.","logo":{"url":"https:\/\/yt3.ggpht.com\/43_VKqrbO06RGMcxfdQbDXosrkVRq1yf5QgSQEiR4ILUGWV9fJtTh0o2ftYMYqVo6PwnEOPRdg=s800-c-k-c0x00ffffff-no-rj","width":800,"height":800,"@type":"ImageObject","@id":"https:\/\/www.youtube.com\/watch?v=LtInd_n1YKA#VideoObject_publisher_logo_ImageObject"}},"potentialAction":{"@type":"SeekToAction","@id":"https:\/\/www.youtube.com\/watch?v=LtInd_n1YKA#VideoObject_potentialAction","target":"https:\/\/www.youtube.com\/watch?v=LtInd_n1YKA&t={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"},"interactionStatistic":[[{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=LtInd_n1YKA#VideoObject_interactionStatistic_WatchAction","interactionType":{"@type":"WatchAction"},"userInteractionCount":40780}],{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=LtInd_n1YKA#VideoObject_interactionStatistic_LikeAction","interactionType":{"@type":"LikeAction"},"userInteractionCount":541}]},"commentCount":"3","comment":[{"@type":"Comment","@id":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/tax-guide\/#Comment1","dateCreated":"2024-01-23 13:22:22","description":"Help. My Credit Union sent out a 1099-INT Interest Income statement showing the interest I earned on my IRA in box 1. The instructions for box 1 says to report this interest as income. This is interest paid into the IRA and should not be reported as income I have spoken with two of their employees who say this is correct. How do I get them to send a revised statement to the IRS to correct this error?","author":{"@type":"Person","name":"CAROL\/JIMMIE CLARK","url":""}},{"@type":"Comment","@id":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/tax-guide\/#Comment2","dateCreated":"2020-02-19 13:32:42","description":"Hi Tess!  Unfortunately this isn't possible unless you have a time machine.\r\n<br>\r\nUnder the pre-2018 tax law, employees who itemized their deductions could deduct unreimbursed work-related expenses to the extent they exceeded 2% of their adjusted gross income.  So if a taxpayer had income of $50,000 during the year, they could deduct unreimbursed work-related expenses to the extent they exceeded $1,000 ($50,000 x 2%).\r\n<br>\r\nOne of these unreimbursed work-related expenses was the home office deduction for employees.  Some employees who worked out of their home for the convenience of their employer and met other qualifications could potentially deduct a portion of their housing costs as an unreimbursed work-related expense.\r\n<br>\r\nHowever, the Tax Cuts & Jobs Act eliminated this deduction beginning in tax year 2018.","author":{"@type":"Person","name":"Logan Allec, CPA","url":"https:\/\/loganallec.com\/"}},{"@type":"Comment","@id":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/tax-guide\/#Comment3","dateCreated":"2020-02-18 12:15:31","description":"Hi Logan! I have a question for you.. so I am an employee but I work from home full time. Can I write off any of my expenses such as internet, electricity, water, other utilities, or even rent? I know if I was a freelancer or self employed I'd be able to, but as an employee I'm not sure. If yes, how much can I write off and how would I do it on my taxes? I'm using Turbotax. Any help would be appreciated!","author":{"@type":"Person","name":"Tess Robison","url":""}}],"about":["Personal Taxes"],"wordCount":3483,"keywords":["schema"],"articleBody":"It&#8217;s that time of year again: tax season.And whenever tax season rolls around, I update this here Money Done Right Federal Income Tax Guide.Please keep in mind that anything I write here or in the comment section should not be taken as tax advice but as general educational information.Table of ContentsToggleDo You Need to File a Tax Return?Determining Your Tax Filing StatusTax RatesTax Deductions and CreditsTax Law Changes for 2020Retirement Plan ContributionsDo You Need to Pay a CPA or EA?Tax Return ChecklistWhat If You Can&#8217;t Pay Your Taxes?Do You Have Any Tax Questions?Do You Need to File a Tax Return?It may surprise you to learn that not everybody who earns income in the United States needs to file a tax return.The table below shows the income levels at which you will need to file an income tax return based on your filing status.2020 Income Thresholds for Non-Self-Employed Non-Dependents.simple_table-26916 table tr th{\ttext-align: center;\t\t}.simple_table-26916 table tr td{\ttext-align: center;\t\t}Tax Return Filing Requirements (Most People)Filing Status and AgeRequired to File if Income Is at LeastSingle, under 65$12,200Single, 65 or older$13,850Married Filing Jointly, both spouses under 65$24,400Married Filing Jointly, one spouse 65 or older$25,700Married Filing Jointly, both spouses 65 or older$27,000Married Filing Separately, any age$5Head of Household, under 65$18,350Head of Household, 65 or older$20,000Qualifying Widow(er), under 65$24,400Qualifying Widow(er), 65 or older$25,700Income Threshold for Self-Employed Non-DependentsHowever, if you&#8217;re self-employed, you must file a tax return if you only netted $400.Note that the definition of &#8220;self-employed&#8221; is broad and extends to any non-employee who earns income for providing goods or services.See Also: 7 Things Freelancers Must Do to File Their Taxes Correctly.simple_table-26918 table tr th{\ttext-align: center;\t\t}.simple_table-26918 table tr td{\ttext-align: center;\t\t}Tax Return Filing Requirements (Self-Employed People)Filing Status and AgeRequired to File if Net Self-Employment Income Is at LeastAny$400Income Threshold for DependentsIf you can be claimed as a dependent on someone else&#8217;s tax return, then you are subject to the table below to determine if you must file a tax return or not..simple_table-29008 table tr th{\ttext-align: center;\t\t}.simple_table-29008 table tr td{\ttext-align: center;\t\t}Tax Return Filing Requirements (Dependents)Filing Status and AgeRequired to File if Unearned Income Is OverRequired to File if Earned Income Is OverRequired to File if Gross Income IsSingle, under 65 and not blind$1,100$12,200More than the larger of $1,100 or your earned income (up to $11,850) plus $350Single, 65 or older or blind$2,750$13,850More than the larger of $2,750 or your earned income (up to $11,850) plus $2,000Single, 65 or older and blind$4,400$15,500More than the larger of $4,400 or your earned income (up to $11,850) plus $3,650Married, under 65 and not blind$1,100$12,200More than the larger of $1,100 or your earned income (up to $11,850) plus $350Married, 65 or older or blind$2,400$13,500More than the larger of $2,400 or your earned income (up to $11,850) plus $1,650Married, 65 or older and blind$3,700$14,800More than the larger of $3,700 or your earned income (up to $11,850) plus $2,950Married Filing Separately$5$5At least $5Other Situations in Which You May Have to File a Tax ReturnNow, though rare, there are some other situations in which your income may not reach the levels described above, but you still may be required to file a tax return.\u00a0 Here they are:You owe special taxes such as the alternative minimum tax.You owe Social Security and Medicare taxes on tips that you didn&#8217;t report to your employer.You received HSA, Archer MSA, or Medicare Advantage MSA distributions.You had wages of $108.28 or more from a church that is exempt from Social Security and Medicare taxes.Advance payments of the premium tax credit were made on your behalf or on your spouse&#8217;s or dependent&#8217;s behalf.You have income under Section 965.Not sure if you have to file a tax return?\u00a0 Leave me a comment below, and I&#8217;ll do my best to help you out.Determining Your Tax Filing StatusYour tax filing status determines many things, including the income thresholds discussed previously at which you must file a tax return as well as your tax rates.There are five filing statuses:SingleMarried Filing JointlyMarried Filing SeparatelyHead of Household, andQualifying Widow(er).SingleIf you were not married &#8212; that is, you have either never been married or you were divorced &#8212; on December 31, 2020, then you may file as Single.Your divorce must be finalized by December 31, 2020; a mere interlocutory decree does not qualify.Note that it may be more advantageous to you to file as Head of Household or Qualifying Widow(er) if you qualify for those filing statuses, so be sure to check those out as well.Married Filing JointlyIf you were married on December 31, 2020 &#8212; regardless of whether you lived with your spouse &#8212; or if your spouse passed away during 2020, you may file as Married Filing Jointly.Generally, married couples will receive more tax benefits by filing jointly rather than separately.Note that you may also qualify for Married Filing Separately or Head of Household filing statuses, so be sure to check those as well to see if they may be more advantageous to you.Married Filing SeparatelyIf you are married, but you and your spouse would like to file your taxes separately, you may both file with the Married Filing Separately filing status.Please note, however, that you may end up paying more tax by filing separately than by filing jointly, and you and your spouse will lose eligibility for the following tax benefits:Student Loan Interest DeductionTuition and Fees DeductionEducation CreditsEarned Income Tax CreditHead of HouseholdIf you are unmarried and provide a home for others, you may qualify for Head of Household status.In most cases, Head of Household status provides lower tax rates than Single status.Generally, to qualify for Head of Household status, you must have paid over half the cost of your home, and a dependent or other qualifying child lived with you more than half the year.An exception to this rule is that you may qualify for Head of Household status if you paid over half the cost of your dependent parent&#8217;s main home, regardless of whether they lived with you.Qualifying Widow(er)Qualifying Widow(er) status is only available to those with a dependent child living with them and whose spouse passed away in the preceding two tax years and you did not remarry before the end of the current tax year.So in order to file as Qualifying Widow(er) for the 2020 tax year, your spouse would have had to have died in 2018 or 2019, and you must not have remarried on or before December 31, 2020.Tax RatesThere are currently seven tax rates &#8212; or brackets &#8212; for federal income tax purposes.For regular income tax purposes &#8212; that is, excluding the Alternative Minimum Tax and preferred tax rates on long-term capital gains and qualified dividends &#8212; everyone with the same filing status pays the same tax rate on each bucket of income.That is, everybody who files as Single will pay tax at the 10% rate on their first $9,875 of income in 2020.Learn More: Here&#8217;s How Tax Rates Work2020 Tax RatesThese are the tax rates for 2020 tax returns due on May 17, 2021 (or October 15, 2021 if you filed for an extension)..simple_table-29022 table tr th{\ttext-align: center;\t\t}.simple_table-29022 table tr td{\ttext-align: center;\t\t}2020 Tax RatesTax RateSingleMarried Filing Jointly or Qualifying Widow(er)Married Filing SeparatelyHead of Household10%$0 to $9,875$0 to $19,750$0 to $9,875$0 to $14,10012%$9,876 to $40,125$19,751 to $80,250$9,876 to $40,125$14,101 to $53,70022%$40,126 to $85,525$80,251 to $171,050$40,126 to $85,525$53,701 to $85,50024%$85,526 to $163,300$171,051 to $326,600$85,526 to $163,300$85,501 to $163,30032%$163,301 to $207,350$326,601 to $414,700$163,301 to $207,350$163,301 to $207,35035%$207,351 to $518,400$414,701 to $622,050$207,351 to $311,025$207,351 to $518,40037%$518,401 or more$622,051 or more$311,026 or more$518,401 or moreTax Deductions and CreditsThere are two ways to take deductions on your tax return: either you take the standard deduction (which you get even if you didn&#8217;t spend any money on deductions) or you itemize your deductions.Standard DeductionThe standard deduction is a set amount that all taxpayers with a certain filing status can take..simple_table-29029 table tr th{\ttext-align: center;\t\t}.simple_table-29029 table tr td{\ttext-align: center;\t\t}2021-2023 Standard Deduction AmountsFiling Status2023202220212020Single$13,850$12,950$12,550$12,400Married Filing Jointly or Qualifying Widow(er)$27,700$25,900$25,100$24,800Married Filing Separately$13,850$12,950$12,550$12,400Head of Household$20,800$19,400$18,800$18,650Itemized DeductionsYour itemized deductions amounts are based on what you actually spend on certain items.Here is a list of itemized deductions:Medical and Dental ExpensesState and Local Taxes (capped at $10,000 per year)Home Mortgage InterestInvestment InterestGifts to CharityCasualty and Theft Losses from a Federally Declared DisasterTax CreditsFor most taxpayers, a tax credit will be worth more than a tax deduction because while a tax deduction merely reduces one&#8217;s taxable\u00a0income, a credit reduces one&#8217;s entire tax\u00a0liability.Some of the most popular tax credits are:Child Tax CreditEarned Income Tax CreditChild and Dependent Care CreditSavers Tax CreditForeign Tax CreditTax Law Changes for 2020Every year, Congress changes the tax laws.Sometimes these are big changes, as when the Tax Cuts &amp; Jobs Act was enacted in late 2017.Since then, there have been some tax law changes, but not as massive as the changes that occurred in 2017.2020 Tax Law Changes from 2019Increase in RMD Age: Thanks to the SECURE Act, required minimum distributions (RMDs) are now required to be taken beginning at age 72 rather than 70.5 as it was previously.Residential Solar Tax Credit: The solar credit has been 30% for quite some time, but it is now reduced to 26% for tax year 2020.\u00a0 It will drop again to 22% next year, which is the final year of the solar credit unless extended by Congress.2019 Tax Law Changes from 2018Form 1040-SR: Seniors, listen up!\u00a0 There&#8217;s a new tax form called Form 1040-SR that&#8217;s rolling out for tax year 2019.Affordable Care Act Penalty: The ACA-mandated penalty for not having health insurance has been eliminated for tax years beginning in 2019.Medical Expenses Deduction Threshold: In order to deduct medical expenses as an itemized deduction, they must now exceed 10% of your adjusted gross income for tax year 2019.\u00a0 For tax year 2018, this threshold was only 7.5%.Business Mileage Deduction: The deduction for business mileage in 2019 is 58 cents per mile, up from 54.5 cents in 2018.Retirement Plan ContributionsNearly all Americans with earned income are able to lower their tax bill by simply contributing to a retirement account.For tax years 2020 and 2021, taxpayers younger than 50 can contribute to IRA accounts &#8212; Traditional or Roth &#8212; the lesser of their earned income or $6,000.Traditional IRA ContributionsSubject to certain eligibility requirements, contributions to Traditional IRAs are deductible against your current year taxable income.If you or your spouse is covered by a retirement plan at work, however, you will need to check with the table below to see how much, if any, of your Traditional IRA contribution you may deduct..simple_table-24847 table tr th{\ttext-align: center;\t\t}.simple_table-24847 table tr td{\ttext-align: center;\t\t}Traditional IRA Contribution Deduction LimitsFiling StatusFull deduction with MAGI:Partial deduction with MAGI:No deduction with MAGI:Single or head of household and you are covered by a retirement plan at work2020: $65,000 or less2021: $66,000 or less2020: between $65,001 and $74,9992021: between $66,001 and $75,9992020: $75,000 or more2021: $76,000 or moreMarried filing jointly and you're covered by retirement plan at work2020: $104,000 or less2021: $105,000 or less2020: between $104,001 and $123,9992021: between $105,001 and $124,9992020: $124,000 or more2021: $125,000 or moreMarried filing jointly and your spouse is covered by a retirement plan at work2020: $196,000 or less2021: $198,000 or less2020: between $196,001 and $205,9992021: between $198,001 and $207,9992020: $206,000 or more2021: $208,000 or moreMarried filing separately and you or your spouse is covered by a retirement plan at work2020: Full deduction not permitted.2021: Full deduction not permitted.2020: between $0 and $9,9992021: between $0 and $9,9992020: $10,000 or more2021: $10,000 or moreRoth IRA ContributionsContributions to Roth IRA accounts are not deductible, but they grow tax-free and may be withdrawn from the account tax-free after age 59.5.However, not everyone is eligible to contribute directly to a Roth IRA.Check the table below to see where you land &#8212; if your income is above the limits, a backdoor Roth IRA will prove useful to you..simple_table-24855 table tr th{\ttext-align: center;\t\t}.simple_table-24855 table tr td{\ttext-align: center;\t\t}Roth IRA Income LimitsFiling StatusFull contribution with MAGI:Partial contribution with MAGI:No contribution with MAGI:Single, head of household or married filling separately (if you did not live with spouse during year)2020: less than $124,0002021: less than $125,0002020: between $124,000 and $138,9992021: between $125,000 and $139,9992020: $139,000 or more2021: $140,000 or moreMarried filing jointly or qualifying widow(er)2020: less than $196,0002021: less than $198,0002020: between $196,000 and $205,9992021: between $198,000 and $207,9992020: $206,000 or more2021: $208,000 or moreMarried filing separately (if you lived with spouse at any time during year)2020: Full contribution not permitted.2021: Full contribution not permitted.2020: less than $10,0002021: less than $10,0002020: $10,000 or more2021: $10,000 or more401(k) ContributionsIf you&#8217;re under age 50, you can contribute a maximum of $19,500 in 2020.For those age 50 or older, this amount increases to $26,000 for 2020.Do You Need to Pay a CPA or EA?If one is to believe the recent TurboTax commercial, &#8220;all people are tax people,&#8221; but that certainly doesn&#8217;t mean that all people should be doing their own taxes.That said, there are some instances where doing your own return makes sense.When Doing It Yourself Makes SenseTax preparation software is getting better every year, making doing your own tax return easier all the time.Everything you need is reported on forms that others prepared for you.If the only tax return inputs you have are those found on common IRS forms that others prepared for you &#8212; such as a Form W-2 or Form 1099-DIV &#8212; then you can probably get by doing your own return in a good tax software.You are willing to put in the time to do some research.Tax return software programs are fairly good at foolproofing the tax return preparation process for their customers, but they&#8217;re not perfect.There may be some instances as you prepare your own return during which you are legitimately confused as to what you should do.In these cases, you may have to do your own research on the IRS website, specifically in the various IRS publications that are produced every year to help taxpayers, in order to figure out what you should input in your tax software.If you are willing to do a little bit of research on your own, DIY&#8217;ing your tax return may be a good option.You qualify for free filing.Many tax software programs offer free tax filing for those with relatively simple returns.If you qualify for free tax filing, then you may as well take advantage of it.Note that H&amp;R Block&#8217;s free edition is more robust than TurboTax&#8217;s free edition.\u00a0 At the 1:35 mark in the video below, I get into the differences.When Hiring a Preparer Makes SenseOf course, there are other instances when paying a professional to prepare your taxes makes sense.It&#8217;s kind of like fixing your car: Could you watch some YouTube videos and do it yourself?\u00a0 Probably, but it will probably eat up half your day if you&#8217;ve never done it before, and you may end up spending more money in the long run if you do it incorrectly.As with most services, sometimes paying a professional to prepare your taxes will save you both time and money.You have your own business.The first instance when hiring a paid preparer to do your taxes is if you own your own business.There are so many tax benefits available to business owners that you may not be aware of, and hiring a tax professional can help you save more money on your taxes.You bought a rental property.Buying your first rental property is a huge step in anyone&#8217;s investing journey.But making an investment like this immediately makes your taxes more complicated.\u00a0 Not only do you have to file Schedule E, but you now have to accurately determine the basis in your rental property, and this is where hiring a tax professional could help you out tremendously.You&#8217;re extremely busy.Finally, if you are just too busy to do your own taxes, it makes sense to outsource the work to a professional.Tax Return ChecklistBelow is the checklist that I use as a CPA for my clients.If you are going to be preparing your own return or hiring a professional, below is a list of the information and documents you will need.Note that it is very unlikely that you will have all of the documents listed below.Taxpayer InformationYour home address and mailing address if different than in prior yearYour full legal name, SSN or ITIN, occupation, and date of birthDependents\u2019 full legal name(s), SSN(s) or ITIN(s), date(s) of birth, and relation(s) to youYour prior year tax returnCommon Tax FormsForm W-2Form 1099-DIVForm 1099-INT1099 FormsForm 1099-A, Acquisition or Abandonment of Secured PropertyForm 1099-B, Proceeds from Broker and Barter Exchange TransactionsForm 1099-C, Cancellation of DebtForm 1099-DIV, Dividends and DistributionsForm 1099-G, Certain Government PaymentsForm 1099-H, Health Coverage Tax Credit Advance PaymentsForm 1099-INT, Interest IncomeForm 1099-K, Merchant Card and Third Party Network PaymentsForm 1099-LTC, Long-Term Care and Accelerated Death BenefitsForm 1099-MISC, Miscellaneous IncomeForm 1099-OID, Original Issue DiscountForm 1099-Q, Payments from Qualified Education ProgramsForm 1099-R, Distribution from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.Form SSA-1099, Social Security Benefit StatementOther Common Tax FormsForm W-2Brokerage account statements along with gain\/loss informationMiscellaneous DeductionsIRA contributionsEnergy creditsMedical Savings Account (MSA) contributionsMoving expensesEducator expensesItemized DeductionsCharitable contribution letters and\/or receiptsForm 1098 showing mortgage interest paid on your personal residence(s)Property tax payments if not reported on Form 1098Vehicle registration information showing deductible portion of registration fees paidMiscellaneous ItemsNotices received during the year from federal or state taxing authoritiesForm 1098-C showing contributions of motor vehicles, boats, and airplanesForm 1098-E showing student loan interest paidForm 1098-T showing tuition paidDocuments supporting other income such as jury duty, gambling winnings, scholarships, etc.Rental ActivityFor each of the Properties, please provide:Final escrow statement and\/or HUD-1Annual property manager reports showing income and expenses by property along with any Forms 1099 issued to you by the property managerNumber of days during the year the property was rentedThe mortgage balance as of December 31, if anyForm 1098 showing mortgage interest paidA listing of any other expenses incurred by you that are reasonably associated with the rental properties and are not already included on the property manager(s)\u2019s reports.\u00a0 Examples include but are not limited to:Legal and other professional feesCosts you incurred for the rental property that were not paid through the property manager(s)Travel expenses, including mileage, to and from the properties or other real estate-related activitiesCost of educating yourself with respect to real estate investing (e.g., books, CDs, online subscriptions, seminars, etc.)Property taxes and insurance if not paid by the manager(s) or reported on Form 1098Business ActivityFor any business activity, please provide:Business nameBusiness addressBusiness start dateEmployer Identification Number (EIN)A description of the principal product or service providedAll Forms 1099 issued by this businessAll Forms 1099 issued to this business or to you on behalf of this businessA balance sheet for your business as of December 31 of the tax year being prepared.A profit and loss statement for your business for the full tax year being prepared including your total revenues and all expenses including but not limited to:InterestRepairsSuppliesOffice expensesCost of goods soldAdvertising expensesWages paid to employeesCommissions paid to contractorsMeals and entertainment expensesLegal and other professional servicesLicenses or other regulatory fees, not including penaltiesCost of assets (machinery, equipment, software) you used in your businessTravel expenses, including mileage, incurred while conducting your businessRefund InformationPlease indicate below how you would like your refund processed if you are entitled to a refund for overpayment of taxes:Apply any overpayment to next year&#8217;s taxesReceive a personal check for refund amountReceive a direct deposit for refund amountWhat If You Can&#8217;t Pay Your Taxes?Many taxpayers receive a tax refund, meaning that throughout the year &#8212; typically via withholding on their wages &#8212; they paid in more in taxes than they actually owed.Others, however, end up owing money to Uncle Sam when they file their tax return.If you end up owing money on your tax return but don&#8217;t have the ability to pay it right now, you have some options.Just know that before pursuing any of the options below, you should file &#8212; or extend &#8212; your tax return timely.120-Day Full Payment AgreementIf you think that you will have the cash to pay your taxes within the next four months or so, consider setting up a Full Payment Agreement with the IRS.There is no fee to adopt this payment plan, but interest and penalties will accrue as they normally would otherwise.Installment AgreementIf you think you will need longer than 120 days to pay off your balance, you should consider applying for an installment agreement with the IRS.Check It Out: Here&#8217;s How to Pay Taxes With Your Credit Card and Earn RewardsDo You Have Any Tax Questions?Do you have any tax questions?\u00a0 Feel free to leave me a comment below!"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Taxes","item":"https:\/\/moneydoneright.com\/taxes\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Personal Taxes","item":"https:\/\/moneydoneright.com\/taxes\/\/personal-taxes\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"Tax Guide 2020-2021","item":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/tax-guide\/#breadcrumbitem"}]}]