With the new year around the corner, the South Carolina Department of Revenue is advising taxpayers to begin to prepare for tax season before 2020 ends.
To begin with, South Carolinians may want to start saving and storing their documents, including tax records, W-2s, 1099s and receipts. In addition, they may want to review electronic filing and refund options.
“To save time, increase security and save tax dollars, the SCDOR encourages taxpayers to file electronically and choose direct deposit,” said SCDOR in a statement. “Direct deposit is the fastest refund option to process and provides you with the fastest access to your money. If you file online and choose direct deposit, you’re less likely to make errors, thanks to system checks.”
The agency also advises taxpayers to report any life changes, including:
- New last name
- New mailing address
- New bank account number
- Having children
- Getting married or divorced
- Buying a home
Any of these changes may impact a taxpayer’s filing status or deductions. Name changes should be reported to the Social Security Administration and the IRS and the SCDOR should be notified of any address changes.
South Carolina taxpayers may also want to consider making additional or estimated tax payments if they believe the amount currently being withheld from their paycheck will not cover the tax due next year. Citizens may also want to update their W-4 with their employer to adjust their withholding ahead of 2022, said the release.
SCDOR is also recommending South Carolinians to protect themselves against identity theft.
“Do not share personal information, such as your Social Security number and bank account information, online or in social media posts,” the release said. “Make sure your computer is protected with strong passwords, updated operating systems, and security software.”