Tax Time 2020
Its Tax Time 2020! The IRS started accepting 2019 tax returns last week. By now you should have received your W-2s and 1098s (interest earned or interest paid). Its time to get ready to prepare your 2019 tax return. You have until April 15 to get your tax return filed. April 15 falls on a Wednesday this year, so no weekend or obscure DC area holidays to extend the due date this year. But unless you expect to have to pay, why wait until then? Do your taxes now. The sooner you file, the sooner you get your refund!
I know many people dread doing their taxes. What they really dread, I think, is gathering up all the required documents needed to prepare the tax return. Having a dedicated place to store your tax documents can make keeping track of those documents easier and alleviate some tax time stress. I did not get the “organization gene”. I have trouble organizing the silverware drawer. If I don’t make it a point to keep track of our tax “stuff”, I’ll be tearing the house apart when I sit down to do our tax returns.
So at the beginning of each year I get a brightly colored file folder with pockets for all of that year’s tax-related documents. I write the year and Tax Stuff across the front and place it on the bookcase near the kitchen where everyone has easy access to it. Throughout the year we place all of our tax related stuff in there – medical bills, pharmacy receipts, charitable donation receipts, etc. In January when we start getting W-2s, 1098s and 1099s, they go in the folder as well. The folder then moves to the dining room table, as that is where I prepare our tax returns. So when I sit down to do all of our tax returns this week, I’ll have everything I need to get them done right there.
DIY Your 2019 Taxes!
This brings up a question that baffles me – why are so many people afraid of doing their own taxes? It’s really not that hard, especially if you use a good tax software program. Back in the day when we had to do taxes by hand, yes, it could be overwhelming. Even with Excel, it was easy to mess up. But today there are excellent software programs that walk you through every step, and do the all the math. I use H&R Block Deluxe. I just love this tax software. I’ve been using this tax software for at least 15 years. H&R
I wouldn’t call it tax software for dummies, but it is designed for average people with little to no special tax knowledge. It really does make preparing your tax returnsimple and straightforward. H&R Block Deluxe tax software is inexpensive, averaging between $25 to $40, depending on where you buy it. Plus, it includes e-filing for up to 5 tax returns. When you e-file, you get your tax refund faster. Did you know that if you e-file with direct deposit you can get your refund in as little as 2 weeks?
Other Options
Yes, there are a number of places you can go to get your 2019 tax return done for free. The free online filing options have requirements, including income limits, to use those options. And there is little to no help available. But if you meet the requirement and are a little tax-savvy, this can be a viable option for you.
Several non-profits have free 2019 tax return preparation and e-filing events on Saturdays in March and April, some even in conjunction with the IRS. Just be very careful with who is preparing your tax return at these events. Yes, IRS employees and tax professionals volunteer at these events. But that does not mean everyone preparing tax returns at the event is a tax pro. Many are volunteers who just want to help out, but have no tax return preparation training or experience, other than the training they received that morning on how to use the software. I’m not kidding. I’ve volunteered at a few of these events over the years. (Full disclosure, I’m an accountant, but not a tax accountant. I work for a large corporation.) And every time I am astonished at the amount of well-meaning volunteers, with no tax knowledge or experience, who are allowed to prepare tax returns for unsuspecting people looking for tax help.
If you go to one of these events to get your taxes done, always, always, ALWAYS ask the person preparing your return what their tax prep experience is. If they are not an IRS employee or a tax professional, ask to be reassigned to someone who is, or just leave. Yes, the IRS will catch the obvious errors when they process your tax return, but that could take months.
Finally, you can try to get a friend or family member to do your taxes for you. Being an over-protective mother, I do my kids’ taxes. Most years I do my dad’s as well. And every year I get asked to do a tax return for a friend because their taxes are “complicated” that year. But for most people, getting a friend to do their taxes is not an option.
Alternatively, you can pay to have your 2019 tax return done. Your accountant will likely charge you $250 to prepare your taxes for you, and that’s for a basic tax return. You carry your paperwork over to her office, and go back a week later to pick it up and sign it, or approve it for e-file. (Note, do not ever send tax information through email, it is not secure!) If you are a procrastinator, this route may not work for you, however. If you decide to go with a tax pro, be sure to get your tax info over to your accountant by April 1, as many tax accountants will not accept new returns after then.
Or you can make the smart choice. Prepare your own tax return using H&R Block Deluxe. Save yourself the expense, time and trouble and while giving yourself a real sense of accomplishment by completing your tax return yourself. You’ll be glad you did!
