KPMG Spark Blog
You know you have to file a tax return – but you just can’t remember the date your individual tax return is due. Don’t worry! We can help.
You know you have to file a tax return – but you just can’t remember the date your individual tax return is due. Don’t worry! We can help. When you outsource your managed accounting to KPMG Spark, we can help you file your tax return on time as well as get your records and information organized. Whether you prepare your tax return yourself or you have someone help you prepare and file your tax return, being organized will help reduce the stress and time related to filing your return.
Most individuals file IRS Form 1040, which for the 2020 tax year would be due no later than. But if you are not ready, you can file an extension by April 15, 2021 and your return would then be due on October 15, 2021. Please note – if you have a tax bill due with your return, you must pay that tax by April 15 as the extension of time to file your return does not extend the time to pay your taxes.
While many states have the same due date as the federal return, the due date for filing and paying your state tax may be different and varies by state. Check your state’s tax agency web page to get the exact dates for filing or extending your state tax return.
If you owe state or federal income taxes, the deadline to pay your bill is typically the same as the tax filing deadline. For federal income taxes, you should pay any taxes you owe by April 15th. As noted above, there is generally no extension for paying your tax bill, but you may request a payment plan if you need more time to pay the full amount. If you do not pay your taxes by the deadline, you may have to pay interest and penalties on any unpaid tax liabilities.
If you were an employee at any time during 2020, your employer should furnish your W-2 to you no later than February 1, 2021. If you have not received your W-2 by February 15th, you should contact your employer and ask for it. Your W-2 is an important document in preparing your 2020 tax return; it generally reports the income you earned, and the taxes that were withheld from your pay and remitted to the IRS and other tax authorities.
If you earned income from a business, but you were not an employee of that business – you may have worked as an independent contractor -- generally, the business will report your income to you on Form 1099-NEC (note that prior to 2020, this income was reported to you on Form 1099-MISC). If a business owes you a Form 1099-NEC, it must be furnished to you by February 1, 2021.
You’ve probably heard this, but keeping track of and organizing your income and expenses is the key to creating a smooth experience when it comes time to preparing your tax return. But if you don't have the time, the drive, the mindset, or the know-how to stay on top of all the transactions and records, you will find that managing the tax process is ten times the task it should be.
Trying to dig through records and transactions from months past is a quick way to transform yourself into an archaeologist, only there will be no exciting temples full of treasure or new dinosaurs to name--only stale transactions.
At KPMG Spark, you get a dedicated bookkeeper who keeps track of all your income and expenses and works directly with you to help ensure you know what is going on with your personal and business finances. We can help organize your 2020 information and have it ready so you can timely prepare your tax return. Or, we can prepare your tax return for you.
Most importantly, please remember your tax return is due on April 15. And we advise that you not wait until the last moment to file. Instead, take some small steps now to prepare – or contact Spark as we are here to help!
KPMG SPARK and SPARK related services are generally not permissible for audit clients and affiliates.
Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.
The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.
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