Valley Updates

Make tax filing easier with these simple steps

It’s that time again and we know getting ready for the tax season can be stressful for many. Here are some steps you can take early to help organize your paperwork so you could avoid feeling rushed come tax time.

1. Make a copy of your 2019 tax return and attachments. With this to guide your 2020 tax prep, you are less likely to forget a source of income or a deduction.

2. Collect the tax IDs you will need. You will want your dependents’ social security numbers and the tax ID of anyone you employed (landscaper, childcare provider, etc.) during the 2020 tax year.

3. Start a file folder labeled “Income.” Put the following tax forms you will receive in January in it:

  • W-2s and 1099-MISCs from employers
  • 1099-INTs reporting interest income
  • 1099-DIVs reporting mutual fund or stock dividends
  • 1099-Bs reporting brokerage transactions

4. If you itemize, start another file folder labeled “Deductions.” Some of the information that goes here will come by mail; the rest you may have to search for.

  • 1098s reporting interest you paid on mortgages and equity loans (also real estate taxes, if included in your monthly mortgage payment)
  • A receipt for real estate taxes if you paid them yourself
  • A copy of your W-2s showing state and local income taxes you paid
  • A receipt for personal property tax from your town or the taxing authority
  • Receipts for charitable donations, including mileage
  • Receipts for medical expenses, including mileage
  • Receipts for bills incurred while job-seeking

5. Make saving for retirement a priority. If you are expecting to receive a tax refund, make it a priority to put away some of the money for retirement or another savings goal you may have. There is still time before April 15, 2021, to contribute to a 2020 Traditional IRA or Roth IRA. You can put aside up to $6,000 or $7,000 if you are 50 or older, income limits may apply. (For details, search “IRA Contribution Limits” at Don’t have an IRA yet? Contact us to discuss your IRA choices at 413-733-2800.

There is no need to worry because we have options to help you out during tax time. We have partnered up with TurboTax to assist you in getting your taxes done at a discounted rate. Also, if you owe money to the IRS for taxes, we want to help with a Personal Living Loan. Go into the 2020 tax season prepared so you can be stress-free.

Pioneer Valley Credit Union does not provide tax advice. We recommend consulting a qualified tax professional to determine how tax laws may apply to your situation. TurboTax is a service which is not an obligation to Pioneer Valley Credit Union or to the members of the credit union. The TurboTax service is not guaranteed by the credit union.