Resources

COVID-19 / Coronavirus Stimulus & Economic Relief

Families First Coronavirus Response Act

The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. Read more [+]

Paycheck Protection Program

The Paycheck Protection Program is an SBA program that is part of the CARES Act just signed into law, Friday March 27th, by President Trump. Now that the law is in effect surely the SBA is hard at work with the development of the policies and regulations that will guide the program. All the specifics and details of the program will be determined by the final regulations and guidance issued by SBA. Read more [+]

 

SBA Economic Injury Disaster Loans

The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Read more [+]

SBA Economic Injury Disaster Loan Forms

Track Your Refund
Tax Due Dates

January 2021

During January

All Employers - Give your employees their copies of Form W-2 for 2020 by February 1, 2021. If an employee agreed to receive Form W-2 electronically, post it on a website accessible to the employee and notify the employee of the posting.

January 11

Employees - who work for tips. If you received $20 or more in tips during December 2020, report them to your employer. You can use Form 4070.

January15

Individuals - Make a payment of your estimated tax for 2020 if you did not pay your income tax for the year through withholding (or did not pay in enough tax that way). Use Form 1040-ES. This is the final installment date for 2020 estimated tax. However, you do not have to make this payment if you file your 2020 return (Form 1040 or Form 1040-SR) and pay any tax due by February 1, 2021.

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in December 2020.

Employers - Nonpayroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in December 2020.

Farmers and Fishermen - Pay your estimated tax for 2020 using Form 1040-ES. You have until April 15 to file your 2020 income tax return (Form 1040 or Form 1040-SR). If you do not pay your estimated tax by January 15, you must file your 2020 return and pay any tax due by March 1, 2021, to avoid an estimated tax penalty.

February 2021

February 1

Individuals who must make estimated tax payments - If you did not pay your last installment of estimated tax by January 15, you may choose (but are not required) to file your income tax return (Form 1040 or Form 1040-SR) for 2020 by February 1. Filing your return and paying any tax due by February 1, 2021, prevents any penalty for late payment of the last installment. If you cannot file and pay your tax by February 1, file and pay your tax by April 15.

Employers - Give your employees their copies of Form W-2 for 2020. If an employee agreed to receive Form W-2 electronically, have it posted on a website and notify the employee of the posting. File Form W-3, Transmittal of Wage and Tax Statements, along with Copy A of all the Forms W-2 you issued for 2020.

Businesses - Give annual information statements to recipients of certain payments made during 2020. You can use the appropriate version of Form 1099 or other information return. Form 1099 can be issued electronically with the consent of the recipient.

Payers of nonemployee compensation - File Form 1099-NEC for nonemployee compensation paid in 2020.

Payers of Gambling Winnings - If you either paid reportable gambling winnings or withheld income tax from gambling winnings, give the winners their copies of Form W-2G.

Employers - Nonpayroll taxes. File Form 945 to report income tax withheld for 2020 on all nonpayroll items, including backup withholding and withholding on pensions, annuities, IRAs, gambling winnings, and payments of Indian gaming profits to tribal members. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the year timely, properly, and in full, you have until February 10 to file the return.

Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the fourth quarter of 2020. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter timely, properly, and in full, you have until February 10 to file the return.

Employers - Federal unemployment tax. File Form 940 for 2020. If your undeposited tax is $500 or less, you can either pay it with your return or deposit it. If it is more than $500, you must deposit it. However, if you deposited the tax for the year timely, properly, and in full, you have until February 10 to file the return.

Certain Small Employers - File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2020. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is $2,500 or more for 2020 but less than $2,500 for the fourth quarter, deposit any undeposited tax or pay it in full with a timely filed return. If you deposited the tax for the year timely, properly, and in full, you have until February 10 to file the return.

Farm Employers - File Form 943 to report Social Security and Medicare taxes and withheld income tax for 2020. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the year timely, properly, and in full, you have until February 10 to file the return.

February 10

Employees - who work for tips. If you received $20 or more in tips during January, report them to your employer. You can use Form 4070.

Employers - Nonpayroll taxes. File Form 945 to report income tax withheld for 2020 on all nonpayroll items. This due date applies only if you deposited the tax for the year in full and on time.

Certain Small Employers - File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2020. This tax due date applies only if you deposited the tax for the year in full and on time.

Farm Employers - File Form 943 to report Social Security and Medicare taxes and withheld income tax for 2020. This due date applies only if you deposited the tax for the year in full and on time.

Certain Small Employers - File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2019. This tax due date applies only if you deposited the tax for the year in full and on time.

Farm Employers - File Form 943 to report Social Security and Medicare taxes and withheld income tax for 2019. This due date applies only if you deposited the tax for the year in full and on time.

Employers - Federal unemployment tax. File Form 940 for 2020. This due date applies only if you deposited the tax for the year in full and on time.

Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the fourth quarter of 2020. This due date applies only if you deposited the tax for the quarter in full and on time.

February 16

Individuals - If you claimed exemption from income tax withholding last year on the Form W-4 you gave your employer, you must file a new Form W-4 by this date to continue your exemption for another year.

Businesses - Give annual information statements to recipients of certain payments made during 2020. You can use the appropriate version of Form 1099 or other information return. This due date applies only to payments reported on Form 1099-B, Form 1099-S, and substitute payments reported in Box 8 or gross proceeds paid to an attorney reported in Box 10 of Form 1099-MISC.

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in January.

Employers - Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in January.

Employers - Begin withholding income tax from the pay of any employee who claimed exemption from withholding in 2020, but did not give you a new Form W-4 to continue the exemption this year.

March 2021

March 1

Health Coverage Reporting to IRS - If you are an Applicable Large Employer, file paper Forms 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and 1095-C with the IRS. For all other providers of minimum essential coverage, file paper Forms 1094-B, Transmittal of Health Coverage Information Returns and 1095-B with the IRS. If you are filing any of these forms with the IRS electronically, your due date for filing them will be extended to March 31.

Businesses - File information returns (for example, certain Forms 1099) for certain payments you made during 2020. However, Form 1099-NEC reporting nonemployee compensation must be filed by February 1. There are different forms for different types of payments. Use a separate Form 1096 to summarize and transmit the forms for each type of payment. See the General Instructions for Certain Information Returns for information on what payments are covered, how much the payment must be before a return is required, what form to use, and extensions of time to file. If you file Forms 1097, 1098, 1099 (except a Form 1099-NEC reporting nonemployee compensation), 3921, 3922 or W-2G electronically, your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms generally remains February 1.

Payers of Gambling Winnings - File Form 1096, Annual Summary and Transmittal of U.S. Information Returns, along with Copy A of all the Forms W-2G you issued for 2020. If you file Forms W-2G electronically, your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms remains February 1.

Large Food and Beverage Establishment Employers - with employees who work for tips. File Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips. Use Form 8027-T, Transmittal of Employer's Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically your due date for filing them with the IRS will be extended to March 31.

Farmers and Fishermen - File your 2020 income tax return (Form 1040 or Form 1040-SR) and pay any tax due. However, you have until April 15 to file if you paid your 2020 estimated tax by January 15, 2021.

March 2

Health Coverage Reporting to Employees - If you are an Applicable Large Employer, provide Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, to full-time employees. For all other providers of minimum essential coverage, provide Form 1095-B, Health Coverage, to responsible individuals..

March 10

Employees who work for tips. - If you received $20 or more in tips during February, report them to your employer. You can use Form 4070.

March 15

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in February.

Employers - Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in February.

Partnerships - File a 2020 calendar year income tax return (Form 1065). Provide each partner with a copy of their Schedule K-1 (Form 1065-B) or substitute Schedule K-1. To request an automatic 6-month extension of time to file the return, file Form 7004. Then file the return and provide each partner with a copy of their final or amended (if required) Schedule K­1 (Form 1065) by September 15.

S Corporations - File a 2020 calendar year income tax return (Form 1120S) and pay any tax due. Provide each shareholder with a copy of Schedule K-1 (Form 1120S), Shareholder's Share of Income, Credits, Deductions, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe in tax. Then file the return, pay any tax, interest, and penalties due, and provide each shareholder with a copy of their Schedule K-1 by September 15.

S corporation election - File Form 2553, Election by a Small Business Corporation, to choose to be treated as an S Corporation beginning with calendar year 2021. If Form 2553 is filed late, S corporation treatment will begin with calendar year 2022.

March 31

Electronic Filing of Forms - File Forms 1097, 1098, 1099 (except Form 1099-NEC), 3921, 3922, and W-2G with the IRS. This due date applies only if you file electronically. The due date for giving the recipient these forms generally remains February 1.

Electronic Filing of Form W-2G - File copies of all the Form W-2G (Certain Gambling Winnings) you issued for 2020. This due date applies only if you electronically file. The due date for giving the recipient these forms remains February 1.

Electronic Filing of Forms 8027 - File copies of all the Forms 8027 you issued for 2020. This due date applies only if you electronically file.

Electronic Filing of Forms 1094-C and 1095-C and Forms 1094-B and 1095-B - If you're an Applicable Large Employer, file electronic forms 1094-C and 1095-C with the IRS. For all other providers of minimum essential coverage, file electronic Forms 1094-B and 1095-B with the IRS.

April 2021

April 12

Employees - who work for tips. If you received $20 or more in tips during March, report them to your employer. You can use Form 4070.

April 15

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in March.

Employers - Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in March.

Individuals - File an income tax return for 2020 (Form 1040 or Form 1040-SR) and pay any tax due. If you want an automatic 6-month extension of time to file the return, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return and pay what you estimate you owe in tax to avoid penalties and interest. Then file Form 1040 or Form 1040-SR by October 15.

Household Employers - If you paid cash wages of $2,200 or more in 2020 to a household employee, file Schedule H (Form 1040 or Form 1040-SR) with your income tax return and report any employment taxes. Report any federal unemployment (FUTA) tax on Schedule H (Form 1040 or Form 1040-SR) if you paid total cash wages of $1,000 or more in any calendar quarter of 2019 or 2020 to household employees.

Individuals - If you are not paying your 2021 income tax through withholding (or will not pay in enough tax during the year that way), pay the first installment of your 2021 estimated tax. Use Form 1040-ES.

Corporations - File a 2020 calendar year income tax return (Form 1120) and pay any tax due. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe in taxes

Corporations - Deposit the first installment of estimated income tax for 2021. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

April 30

Employers - FFederal unemployment tax. Deposit the tax owed through March if more than $500.

Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the first quarter of 2021. Deposit any undeposited tax. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter in full and on time, you have until May 10 to file the return.

May 2021

May 10

Employees - who work for tips. If you received $20 or more in tips during April, report them to your employer. You can use Form 4070.

Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the first quarter of 2021. This due date applies only if you deposited the tax for the quarter in full and on time.

May 17

Employers - Nonpayroll withholding. - If the monthly deposit rule applies, deposit the tax for payments in April.

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in April.

June 2021

June 10

Employees - who work for tips. If you received $20 or more in tips during May, report them to your employer. You can use Form 4070.

June 15

Individuals - If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, file Form 1040 or Form 1040-SR and pay any tax, interest, and penalties due. If you want additional time to file your return, file Form 4868 to obtain 4 additional months to file. Then file Form 1040 or Form 1040-SR by October 15. However, if you are a participant in a combat zone you may be able to further extend the filing deadline.

Individuals - Make a payment of your 2021 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the second installment date for estimated tax in 2021.

Corporations - Deposit the second installment of estimated income tax for 2021. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

Employers - Nonpayroll withholding. - If the monthly deposit rule applies, deposit the tax for payments in May.

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in May.

July 2021

July 12

Employees - who work for tips. If you received $20 or more in tips during June, report them to your employer. You can use Form 4070.

July 15

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in June.

Employers - Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in June.

August 2021

August 2

Employers - Federal unemployment tax. Deposit the tax owed through June if more than $500.

Employers - If you maintain an employee benefit plan, such as a pension, profit-sharing, or stock bonus plan, file Form 5500 or 5500-EZ for calendar year 2020. If you use a fiscal year as your plan year, file the form by the last day of the seventh month after the plan year ends.

Certain Small Employers - Deposit any undeposited tax if your tax liability is $2,500 or more for 2021 but less than $2,500 for the second quarter.

Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the second quarter of 2021. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until August 10 to file the return.

August 10

Employees - who work for tips. If you received $20 or more in tips during July, report them to your employer. You can use Form 4070.

Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the second quarter of 2021. This due date only applies if you deposited the tax for the quarter timely, properly, and in full.

August 16

Employer - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in July.

Employers - Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in July.

September 2021

September 10

Employees - who work for tips. If you received $20 or more in tips during August, report them to your employer. You can use Form 4070.

September 15

Individuals - Make a payment of your 2021 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the third installment date for estimated tax in 2021.

Employers - Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in August.

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in August.

S Corporations - File a 2020 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you timely requested an automatic 6-month extension. Provide each shareholder with a copy of Schedule K-1 (Form 1120S) or a substitute Schedule K-1.

Partnerships - File a 2020 calendar year return (Form 1065). This due date applies only if you were given an additional 6-month extension. Provide each partner with a copy of Schedule K1 (Form 1065) or a substitute Schedule K1.

Corporations - Deposit the third installment of estimated income tax for 2021. A worksheet, Form 1120-W, is available to help you make an estimate of your tax for the year.

October 2021

October 12

Employees - who work for tips. If you received $20 or more in tips during September, report them to your employer. You can use Form 4070.

October 15

Individuals - If you have an automatic 6-month extension to file your income tax return for 2020, file Form 1040 or Form 1040-SR and pay any tax, interest, and penalties due.

Employers - Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in September.

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in September.

Corporations - File a 2020 calendar year income tax return (Form 1120) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension.

November 2021

During November

Employers - Income tax withholding. Encourage employees to fill out a new Form W-4 for 2022 if they experienced any personal or financial changes. The 2022 revision of Form W-4 will be available on the IRS website by mid-December.

November 1

Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the second quarter of 2021. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until November 10 to file the return.

Certain Small Employers - Deposit any undeposited tax if your tax liability is $2,500 or more for 2020 but less than $2,500 for the third quarter.

Employers - Federal Unemployment Tax. Deposit the tax owed through September if more than $500.

November 10

Employees - who work for tips. If you received $20 or more in tips during October, report them to your employer. You can use Form 4070.

Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the third quarter of 2021. This due date only applies if you deposited the tax for the quarter timely, properly, and in full

November 15

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in October.

Employers - Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in October.

December 2021

December 10

Employees - who work for tips. If you received $20 or more in tips during November, report them to your employer. You can use Form 4070.

December 15

Corporations - Deposit the fourth installment of estimated income tax for 2021. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in November.

Employers - Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in November.

2021 Tax Rates

2021 Tax Rates - Single Taxpayers - Standard Deduction $12,550

0 to $9,95010%

$9,950 to $40,52512%

$40,525 to $86,37522%

$86,375 to $164,92524%

$164,925 to $209,42532%

$209,425 to $523,60035%

Over $518,40037%

2021 Tax Rates - Married Jointly & Surviving Spouses - Standard Deduction $25,100

0 to $19,90010%

$19,900 to $81,05012%

$81,050 to $172,75022%

$172,750 to $329,85024%

$329,850 to $418,85032%

$418,850 to $628,30035%

Over $628,30037%

2021 Tax Rates - Married Filing Separately - Standard Deduction $12,550

0 to $9,95010%

$9,950 to $40,52512%

$40,525 to $86,37522%

$86,355 to $164,92524%

$164,925 to $209,42532%

$209,425 to $314,15035%

Over $314,15037%

2021 Tax Rates - Head of Household - Standard Deduction $18,800

0 to $14,20010%

$14,200 to $54,20012%

$54,200 to $86,35022%

$86,350 to $164,90024%

$164,900 to $209,40032%

$209,400 to $523,60035%

Over $523,60037%

2021 Tax Rates - Estates & Trusts

0 to $2,65015%

$2,650 to $9,55024%

$9,550 to $13,05035%

Over $13,05037%

Social Security

Social Security Tax Rate: Employers6.2%

Social Security Tax Rate: Employees6.2%

Social Security Tax Rate: Self-Employed15.3%

Maximum Taxable Earnings $142,800

Medicare Base SalaryUnlimited

Medicare Tax Rate Employers1.45%

Medicare Tax Rate Employees1.45%

Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers)0.9%

Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers)3.8%

Miscellaneous

Business expensing limit: Cap on equipment purchases$2,620,000

Business expensing limit: New and Used Equipment and Software$1,050,000

Qualified Business Income threshold amount:$164,925 (single and head of household); $329,800 (married filing joint return)

Qualified Small Employer Health Reimbursement Arrangement limit:$5,300 (single coverage); $10,700 (family coverage)

Prior-year safe harbor for estimated taxes of higher-income110% of your 2020 tax liability

Standard mileage rate for business driving56 cents

Standard mileage rate for medical/moving driving16 cents

Standard mileage rate for moving driving - Members of the Armed Forces on active duty who move because of a permanent change of station16 cents

Standard mileage rate for charitable driving14 cents

Child Tax Credit$2,000

Unearned income maximum for children under 19 before kiddie tax applies$1,100

Maximum capital gains tax rate for taxpayers with income up to $39,375 for single filers, $78,750 for married filing jointly0%

Maximum capital gains tax rate for taxpayers with income above $40,400 for single filers, $80,800 for married filing jointly15%

Maximum capital gains tax rate for taxpayers with income above $445,850 for single filers, $501,600 for married filing jointly20%

Capital gains tax rate for unrecaptured Sec. 1250 gains25%

Capital gains tax rate on collectibles28%

Maximum contribution for Traditional/Roth IRA$6,000 if under age 50 $7,000 if 50 or older

Maximum employee contribution to SIMPLE IRA$13,500 if under age 50 $16,500 if 50 or older

Maximum Contribution to SEP IRA25% of eligible compensation up to $56,000

401(k) maximum employee contribution limit$19,500 if under age 50 $26,000 if 50 or older

Estate tax exemption$11,700,000

Annual Exclusion for Gifts$15,000

Education

American Opportunity Credit (Hope)$2,500

Lifetime Learning Credit$2,000

Student Loan Interest Deduction$2,500

Coverdell Education Savings Contribution$2,000

Standard Meal Rates for Family Child Care Providers for 2021 income tax returns

Continental U.S.

For each breakfast$1.39

For each lunch or supper$2.61

For each snack (up to 3 per day for each child)$0.78

Alaska

For each breakfast$2.22

For each lunch or supper$4.24

For each snack (up to 3 per day for each child)$1.26

Hawaii

For each breakfast$1.62

For each lunch or supper$3.06

For each snack (up to 3 per day for each child)$0.91

Record Retention Guide

Storing tax records: How long is long enough?

Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This is called the “three-year law” and leads many people to believe they’re safe provided they retain their documents for this period of time.

However, if the IRS believes you have significantly underreported your income (by 25 percent or more), or believes there may be indication of fraud, it may go back six years in an audit. To be safe, use the following guidelines.

Create a Backup Set of Records and Store Them Electronically. Keeping a backup set of records — including, for example, bank statements, tax returns, insurance policies, etc. — is easier than ever now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet.Even if the original records are provided only on paper, they can be scanned and converted to a digital format. Once the documents are in electronic form, taxpayers can download them to a backup storage device, such as an external hard drive, or burn them onto a CD or DVD (don’t forget to label it).You might also consider online backup, which is the only way to ensure that data is fully protected. With online backup, files are stored in another region of the country, so that if a hurricane or other natural disaster occurs, documents remain safe.

Caution: Identity theft is a serious threat in today’s world, and it is important to take every precaution to avoid it. After it is no longer necessary to retain your tax records, financial statements, or any other documents with your personal information, you should dispose of these records by shredding them and not disposing of them by merely throwing them away in the trash.

Stephan P. McMahon & Company