Get the proper documents together
One of the first things a taxpayer needs to do is to gather their financial documents, such as W-2 forms or 1099 forms. In many cases today, these forms may be digital. To stay organized, taxpayers may want to keep a folder of all the documents they receive so it is all ready to go as soon as possible.
When you’re an employee of a company, you can expect to get a w2 from your employer. If you earned income from investments or as a freelance worker, you’ll likely receive 1099 forms.
There should be one W-2 for each employer from the previous year. The number of 1099 forms, if any, a taxpayer receives is dependent on the type of income received during the tax year.
The consequences of filing your taxes late
If it is a taxpayer’s first time filing, they might be curious about what happens if they file their taxes late? If a taxpayer misses the deadline and did not file for an extension, it is still imperative to file them as soon as possible. If a taxpayer is expecting a refund, there will be no penalty (and technically they can still file for three years), but if money is owed to the IRS there may be a penalty involved that includes interest.
Don’t forget extra income
The IRS doesn’t only want the information from a taxpayer’s primary job, they want everything. So, make sure to include any income earned from the year including freelance work, side jobs, bonuses, and even interest earned. Typically, a taxpayer will receive tax forms from the employer, bank, etc. for these but even if the form does not come, the income should still be reported.