Optima Tax Relief Helps Taxpayers Prepare for their 2020 Federal Income Tax Returns

All taxpayers are encouraged to start taking the necessary steps to prepare for filing their taxes in order to avoid any unnecessary mistakes on their return. Optima Tax Relief provides steps individuals can take in order to make their tax filing easier.

Taxpayers should collect any Forms W-2, Wage and Tax Statements, Forms 1099-MISC, Miscellaneous Income, or any other additional documents that will help those who are eligible to qualify for certain deductions or credits. Taxpayers should also provide their Notice 1444, Your Economic Impact Payment, in order to accurately calculate any Recovery Rebate Credit that they may qualify for on their 2020 Federal income tax return.

Those who have an Individual Taxpayer Identification Number (ITIN) should double-check that it has not expired otherwise it may cause delays when filing their taxes. The IRS recommends using Form W-7, Application for IRS Individual Taxpayer Identification Number, to ensure that your ITIN is currently up to date.

The IRS also provides a Tax Withholding Estimator for taxpayers to help determine if they are withholding enough from their paychecks. For those who need to adjust their withholding, they can submit Form W-4, Employee’s Withholding Certificate, to their employers.

Estimated tax payments are required for those who received non-wage income such as self-employment income, investment income, taxable Social Security benefits, and in some cases, pension and annuity.

Some May be eligible to claim the Recovery Rebate Credit

Taxpayers who did not receive an economic impact payment bay be able to claim the Recovery Rebate Credit. Here are the eligibility criteria for your 2020 taxes:

  • They didn’t receive an Economic Impact Payment this year.
  • Their Economic Impact Payment was less than $1,200 ($2,400 if married filing jointly for 2019 or 2018) plus $500 for each qualifying child.
Annika Bansal

Annika "The Chick Geek" is the founder of AnnikaBansal.com. Small Business Sense shares small business ideas, tips and resources for independent Entrepreneurs and Small Business owners.