Prepare for taxes: plan today to file your 2019 tax return.

The Internal Revenue Service urges taxpayers to take steps now to avoid surprises when they file next year and ensure smooth processing of their 2019 tax return.

Prepare for taxes: plan today to file your 2019 tax return.
Prepare for taxes: plan today to file your 2019 tax return.

It is the first in a series of reminders to help taxpayers prepare for the next tax-filing season. For this, the IRS recently updated a particular page on its website that describes the steps that taxpayers can now take to prepare for the 2020 tax filing season.

Adjust retention; make estimated tax payments or additional tax payments.

The IRS encourages everyone to use the Tax Withholding Estimator to perform a quick review of your paycheck or a review of your pension income. It is even more critical for those who received a lower-than-expected refund or who owed taxes not anticipated last year.

It is also a good idea for those who had a significant life event, such as getting married, divorcing, having or adopting a child, buying a house, or starting university studies.

Taxpayers who receive a substantial amount of non-salary income must make estimated tax payments. Making estimated tax payments can also help an employee meet an unexpected need for withholding.

Estimated tax payments are due quarterly. The remaining due date for estimated 2019 payments is January 15, 2020.

Workers and retirees who also receive income from self-employment, shared economy income or payments in the form of virtual currency, should be sure to take this into account when using the Tax Withholding Estimator. Payments in virtual currency (in English) by independent contractors and other service providers are taxable, and self-employment tax rules generally apply. Typically, those who pay must issue Form 1099-MISC. Salaries paid to employees using virtual currency are payable to the employee, subject to withholding, and must be reported by an employer on a Form W-2.

People with more complex tax situations should use the instructions in Publication 505, Withholding Taxes, and Estimated Taxes. It includes taxpayers who owe an alternative minimum tax or individual other taxes and people with long-term capital gains or qualified dividends.

As always, the IRS warns taxpayers not to trust a refund on a specific date, especially when making major purchases or paying bills. Keep in mind that some statements may require additional review for a variety of reasons and may take longer.

Remember, for more information on tax questions, payment plans, or any other tax-related issue, visit the website or call the IRS Taxpayer Service Line at 1-800-829-1040 extension 8 for Spanish. If you need to report tax fraud, call toll-free 1-800-829-0433, and follow us on Twitter:


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