IRS urging taxpayers to gather documents for smooth filing

Unemployment compensation is taxable, and should be included as gross income

IRS urging taxpayers to gather documents for smooth filing
Tax season (generic).

TUCSON, Ariz. (KOLD News 13) - The Internal Revenue Service is urging taxpayers to begin getting documents ready for tax season, saying that organizing tax records is an important first-step in getting ready file returns.

Taxpayers should keep documents like W-2s, canceled checks and other relevant documents that support income, deducations or credit, in a handy place. The IRS recommends people to develop a system that keeps all of these together.

And to avoid refund delays, taxpayers should gather all year-end income documents so they can file an accurate 2020 tax return. Most taxpayers will receive income documents near the end of January, 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

The IRS reminds taxpayers that unemployment compensation is taxable, and must be included as gross income on their tax returns.

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