What to do before the tax year ends Dec. 31

As tax filing season approaches, taxpayers need to do a number of things that will help them prepare for the upcoming tax filing season.

Below are a few things taxpayers still have time to do this year:

Donate to charity
Taxpayers still have time to make a 2019 donation. This is more important for taxpayers who plan to itemize deductions - especially if they've itemized in the past. Taxpayers who itemized in the past should remember that the standard deduction has increased, which may limit or eliminate the itemized deductions for many taxpayers.

Report an address change
Taxpayers who moved should notify the IRS of their new address. They should also remember to notify the Social Security Administration of any name change.

Renew expiring ITINs
Certain individual taxpayer identification numbers expire at the end of this year. Taxpayers can visit the ITIN page on IRS.gov for more information on which numbers need renewal.

Find information about retirement plans
IRS.gov has end-of-year find tax information about retirement plans. This includes resources for individuals about retirement planning, contributions and withdrawals. Taxpayers who are 70½ and over can still take a required minimum distribution from traditional IRA, SIMPLE IRA, SEP IRA, or retirement plan accounts. Taxpayers who reached 70½ in 2019 can wait until April 1, 2020, to receive their first required minimum distribution.

Contribute salary deferral
Taxpayers can make a deferral to a retirement plan. This helps maximize the tax credit available for eligible contributions. Taxpayers should make sure their total salary deferral contributions do not exceed the limit for 2019.

Think about tax refunds
Taxpayers should be careful not to expect getting a refund by a certain date. This is especially true for taxpayers who plan to use their refund when making major purchases or paying bills. Just as each tax return is unique and individual, so is each taxpayer's refund. Taxpayers can take steps now to make sure the IRS can process their return next year.

 

Source: irs.gov