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.