It’s important to get organized with tax forms before filing your return to avoid refund delays. Here’s how to know which forms you need.
for dividends and distributions is Feb. 15. But some investment firms get an extension from the IRS for more time to validate forms and avoid corrections, meaning you may not receive these forms until March, Loyd said.
If you do need a corrected form, it can slow down your filing process because it takes time for the investment firm to update and reissue your documents, he said. Regardless of your situation, it's important to have all the necessary forms handy before filing your return, Loyd said."It's 1,000 times better" to file correctly the first time, he added, noting that IRS notices may take months to resolve.If you're not sure which tax forms to expect, experts say last year's tax return is a great starting point.
"I go page-by-page with the prior year and current year's [returns]," said Marianela Collado, a CFP and CEO of Tobias Financial Advisors in Plantation, Florida. She is also a CPA."That's always a good check," she said.
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