What forms do I need to file my taxes?
If it’s your first year filing taxes as a new parent or ever, it can feel overwhelming trying to figure out all of the documents you need.
You aren’t alone, and we have broken it down to help you out!
Here are four kinds of documents to gather to get set for federal tax filing for the 2020 year:
1) Taxpayer identification (Social Security or ITIN numbers for you and your child)
If you are filing with a spouse, you need their ID number as well. Most SSN paperwork for your newborn is completed in the hospital. However, if you don’t have a SSN for your child yet, you can complete this Form SS-5 and request one through the Social Security Administration office near you. You can call 1–800–772–1213 and the process takes 6–12 weeks.
Why is this important? This helps you qualify for the credits you are now eligible for as a new parent (with a child born in 2020).
2) 2020 Tax Forms
You’ve probably seen these forms before. You know, the ones with the combinations of numbers and letters? They are mailed or emailed to you from your employer, your school, or the government. The most common ones we see are Income (W-2, 1099-MISC, 1099-NEC), Unemployment Compensation (Form 1099-G), Interest/Dividend Income (Form 1099-T, Form 1099-DIV), Social Security (Forms SSA-1099, RRB-1099), Scholarships (Form 1098-T or W-2) or Student Loan Interest (Form 1098-E). There are plenty more though, so gather anything else that comes your way!
As a new parent, you will want your receipts from childcare expenses if you paid someone to watch your child while you worked!
Also, for 2020 there’s a rule this year that allows you to deduct up to $300 from your taxable income for giving to charity. So, if you gave some money to church or to another nonprofit — even if just $20, it’s worth noting because it will translate to savings!
Don’t file your taxes until you have ALL of the forms. Otherwise you may have to amend them, and that will just involve more paperwork!
Why is this important? This helps you know whether you are eligible for new credits now that you are a new parent. It also helps you know how much tax you’ve already paid and may be able to get back from the government.
3) Last year’s tax return or wage information
If you filed taxes last year, download or find your tax return for 2019. If you didn’t file taxes last year, that’s ok; try to track down your W-2 or other wage income from the 2019 year.
Why is this important? There’s a new rule (just for 2021) for hardworking families linked to the recent stimulus legislation. It will allow you to use the amount of income you earned in 2019 to qualify for the EITC for the 2020 year, if that number helps you get a larger credit amount! It’s a little confusing so we will be writing a post to break it down more.
4) Stimulus check information
Find Notice 1444 (that letter that accompanied your stimulus check) to check that you got the correct amount for your family. If you don’t have Notice 1444 anymore, just be ready to share with your tax preparer or software the amount of stimulus checks you received in 2020. If you have a record of it somewhere, that is great!
Why is this important? When you file taxes, you may be eligible for the Recovery Rebate Credit which means you can get the money you are owed but haven’t received yet in stimulus payments. If you had a child in 2020 and didn’t receive your $500 or $600 supplements for them (totalling $1,100), you should receive that as part of your tax refund.
