SIMPLE STEPS TO MAKE 2022 TAX FILING EASIER
As we approach the end of the year, Smith Schafer would like to help you reduce the stress related to filing taxes. It is important to organize your receipts, forms, and other documents well before tax time. The tips below can help you better prepare and file your taxes more confidently.
ORGANIZE YOUR TAX RECORDS
One of the easiest ways to start your tax return process is by gathering your information and organizing your tax records. Having organized tax records helps avoid errors and speeds the process along. If you are a client of Smith Schafer, you will receive an organizer and questionnaire to help gather documents. You should receive most of your tax documents by February 2022. Some examples of documents you may receive are W-2s, brokerage statements, and 1099s for investment income. Other information can be summarized before year-end, including charitable contributions, children’s education expenses, and medical expenses.
NEW & EXISTING TAX CREDITS
In 2021, there were several new credits, and taxpayers will need to provide details about what was received to ensure the maximum credits are utilized. For example, in April 2021, most taxpayers received the third Economic Impact Payments. The actual amount received will be needed to determine the 2021 Recovery Rebate Credit amount. Similar to the previous year, if there was a reduction in health insurance premiums, your tax preparer will need Form 1095-A to determine the amount of the Premium Tax Credit.
Our Tax Planning Guide provides tips to help minimize your business tax liability, summarizes complex tax regulations, identifies common business deductions, and much more!
If you owed taxes or received a large refund in the previous year, you may consider adjusting your withholding with your employer.
Those who have children under the age of 24 will want to check whether to claim their dependent in 2022. As dependent children begin working, it will be essential to match the dependent’s tax filing with the parents, and as they get older, they may want to claim themselves.
REVIEW YOUR 2020 TAX RETURN
Generally, the changes from the last tax year will be minimal. However, by looking at your tax returns from 2020, you may notice areas that might otherwise be easy to overlook — for example, dividends, interest, or uncommon deductions.
Planning can help you file an accurate return and avoid processing delays that slow your tax refund. A little advance preparation will help you get through the process quickly and easily. Follow the simple tips above, and you will be able to breathe a little easier come April 15th.
If you are interested in having a professional tax preparer, please reach out to us.