Tax Filing Alert: Why You Should Wait Before Filing Your Taxes This Year?

Race Day Live Tax season is here, and while it might be tempting to file your taxes as soon as possible, it’s important to wait until you have all your required documents.

Filing early without the right paperwork can lead to problems, like having to file an amended return later on, which could delay your refund.

The Taxpayer Advocate Service (TAS) of the Internal Revenue Service (IRS) recently released a warning to taxpayers: don’t rush into filing your taxes before you’re sure you have all the necessary forms. Waiting for everything to arrive can save you a lot of time and hassle in the long run.

Why It’s Important to Wait?

The TAS advised taxpayers to avoid filing until they have received all the forms they need. If you file without all your paperwork, you may need to amend your return later, which can take months to process. It is better to take the time now and file accurately, rather than dealing with delays and corrections.

“Amending your tax return after filing your taxes to report additional income missed on your original return… can take months to process,” the TAS noted. “

It is worth waiting to file until all final income documents are received to avoid having to file an amended return.”

Common Tax Forms to Look Out For

There are several common tax forms that most taxpayers will need to collect before they can file their returns. Below are the key forms you should be on the lookout for:

1. W-2 Form

The W-2 form is given to employees by their employers. This form includes important information about your total earnings, the taxes you’ve already paid, and any contributions to retirement accounts or payroll deductions. It’s crucial to have your W-2 before filing.

2. 1099 Forms

There are many different types of 1099 forms, depending on the kind of income you receive. For example:

• 1099-INT: This form reports interest income of $10 or more from banks and financial institutions.
• 1099-DIV: Used for income from dividends and other distributions.
• 1099-R: If you received income from pensions, annuities, or retirement accounts, this form will report those distributions.
• 1099-K: This form is for anyone who sold items through online platforms like PayPal, eBay, Etsy, or Venmo. If your transactions for 2024 total more than $5,000, you should expect a 1099-K.

3. 1099-G Form

If you received unemployment compensation, the 1099-G form will report those payments.

4. 1099-MISC and 1099-NEC Forms

• 1099-MISC: This form is used to report miscellaneous income, such as royalties, rents, or prizes.
• 1099-NEC: If you’re an independent contractor and earned more than $600 in a year, you’ll receive this form, which reports your earnings.

5. Schedule K-1 Form

Business owners, partners, and investors will receive a Schedule K-1 form. This form reports income, losses, and other financial information from a partnership or business.

When to Expect Your Forms?

Most of the forms you need should arrive between January and February, but there are deadlines that employers and financial institutions must meet:

• Employers are required to send out W-2 forms by January 31.
• 1099 forms generally have a deadline of February 18.
• Schedule K-1 forms often arrive later than other forms.

If you don’t receive your forms by mid-February, it’s important to contact the relevant parties, like your employer or financial institution, to ask for the missing paperwork.

Read More:

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• Teachers, Police Among Millions Waiting Over a Year for Social Security Raises!

What to Do If You’re Missing Forms?

If you’ve checked the dates and still haven’t received your forms, the IRS advises taxpayers to reach out to the source directly.

This could mean contacting your employer, bank, or other financial institutions to request the form. The IRS also has resources to help people track down missing documents.

The Taxpayer Advocate Service suggests that taxpayers make a list of all the forms they’re expecting. This way, you can double-check that you have everything before you file your taxes. It will save you time and prevent future headaches.

Final Tips for Tax Filing

Before you file your taxes, make sure you have received all your income-related forms and any other tax documents you need.

Taking a few extra days or weeks to wait for everything to arrive can make a big difference in making sure your return is accurate. If you file without everything, you might have to amend your return, which can lead to a long delay in your refund.

Taxpayers have until April 15, 2025, to file their returns. If you need more time, you can request a six-month extension. However, remember that even if you file for an extension, you still need to pay any taxes you owe by the April deadline.

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