20 THE QUEENS COURIER • FEBRUARY 25, 2021 FOR BREAKING NEWS VISIT WWW.QNS.COM
tax guide
The fi rst step of tax preparation is gathering records
As taxpayers get ready to fi le their 2020
tax return, they should start by gathering
their records. Taxpayers should gather
all year-end income documents to help
ensure they fi le a complete and accurate
2020 tax return and avoid refund delays.
Taxpayers should have all necessary
records handy, such as W-2s, 1099s,
receipts, canceled checks and other documents
that support any income,deductions
or credits on their tax return.
Most taxpayers should have already
received income documents 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
Here are a couple other things taxpayers
can do to prepare to fi le.
View IRS account online
Taxpayers can view their online account.
Th is allows them to see the latest information
about their federal tax account and
most recently fi led tax return through a
secure and convenient tool on IRS.gov.
Th is can help taxpayers if they need information
from last year’s return.
People with an account on IRS.gov can
also see the amounts of their Economic
Impact Payments. Th is will be helpful to
eligible individuals who either did not
receive any Economic Impact Payments
or received less than the full payments.
Th ey may claim the recovery rebate credit
on their 2020 federal tax return.
People should visit Secure Access: How
to Register for Certain Online Self-Help
Tools for more information about how to
create an account or how to reset the username
or password.
Review unemployment benefi ts
Unemployment compensation is taxable
and must be included as gross income
on a taypayer’s return.
Taxpayers should receive a Form 1099-
G showing their unemployment income.
Th ey can have federal taxes withheld from
their unemployment benefi ts or make
estimated tax payments, but many do neither.
Photo via Getty Images
In that case, taxes on those benefi
ts need to be paid when their 2020 tax
return is fi led. Th erefore, taxpayers who
didn’t have tax withheld from their payments
may see a smaller refund than
expected or possibly have a tax bill.
Individuals who receive a Form 1099-
G for unemployment compensation they
were not paid should contact their state
tax agency and request a corrected Form
1099-G. States should not issue Forms
1099-Gs to taxpayers they know to be victims
of identity theft involving unemployment
compensation. Taxpayers should fi le
an accurate return including the income
they actually received.
Taxpayers who are victims of identity
theft involving unemployment compensation
should not fi le an identity theft affi -
davit with the IRS.
— Courtesy of the
Internal Revenue Service
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