The new year has been rung in and I’m sure your first thought in 2020 was, “2019 is over, I need to get my accountant my tax forms STAT!” However, you may have to take a breather and wait for everything you need to be ready. What should you wait for? It depends on the type of taxes you’re filing and what types of income you have.
In most cases, individuals should wait until they think they have all of their information together before giving it to their accountant.
- If you receive a K-1 for a business or a trust that your accountant also prepares, you can send your information in before you receive the K-1.
- If your tax return is extended every year due to receiving late or corrected brokerage statements or K-1s you should send the bulk of your information in earlier. If your tax preparer is able to prepare your extension in advance of April 15th you will likely have a more accurate extension since they are not in a rush.
- Most forms must be sent by January 31st
- 1099-MISC (nonemployee compensation)
- Various 1098 Tax Forms, including 1098 Mortgage Interest Statements, 1098-E Student Loan Interest Statement, and 1098-T Tuition Statement.
- Other forms must be sent by February 15th
- Brokerage statements
- If you receive a K-1 from a business that does not file an extension, you will receive it by March 15th, if extended it could be as late as September 15th
- If you receive a K-1 from a trust, the original due date is April 15th so you may need to extend your tax return if you don’t expect to receive it timely.
If you receive key information late, such as a K-1 during the first week of April, you may be able to convince your accountant to finish your tax return before the filing deadline if you send in your other information earlier. However, if you wait until then to send in all of your information you are very likely to need an extension.
Still not sure when to send in your information? Give your accountant a call and they can help with any questions!