The 2022 tax season is officially here, as of January 24th! Now, the Internal Revenue Service will begin accepting and processing federal tax returns for the year 2021. Whether you plan on filing taxes on your own or with an accountant, it is important to ensure you are readily prepared this season. Here are 5 MUSTS to be prepared for tax season!
1. Important Documents
As we know, filing taxes requires documentation. It is a smart idea to start gathering tax documents now. Since many documents, such as W-2s and 1099s, may be digitally delivered, consider creating a digital folder to store important documentation. Some important documents to start rallying for tax season are:
W-2s (from employers)
1099s (from any source that paid you)
Medical documents (showing expenses)
Educational documents (showing expenses)
Childcare documents (showing expenses)
Mortgage interest payments
Receipts (deductible expenses and charitable donations)
Next, consider the dependents you may claim on your tax returns. If there is a situation where someone else may claim that dependent, such as divorced parents, communicate to figure out who will claim whom. Once that is set in stone, you will need the names and social security numbers of the dependents included on your tax returns.
3. Personal Information Check
Employers must send W-2s by the last day of January. The employer provides your personal information on this documentation. If any information is incorrect, then this could cause you to file your returns late. Double-check that your employer has the most accurate and up-to-date information beforehand to avoid any issues.
4. Plan Ahead
Furthermore, to avoid becoming delinquent on your taxes, plan your finances if you think you may owe taxes. There are many savings plans to consider, and each person may prepare differently. The deadline to pay 2022 federal taxes is April 18th.
5. Stay Updated
While you may feel prepared and ready to go, stay up to date with the IRS. COVID-19 may impact tax filing, refunds, and payment deadlines in 2022. Continue to stay vigilant and updated on these matters.
Tax Filing Tips
Being prepared for the 2022 tax season is wonderful, but here are some more tips to assure seamless filing!
- Check for the latest tax information. This allows you to get information without a phone call!
- Create an account to access your personal tax account information like the balance, payments, and records.
- When completing an electronic return, choose a direct deposit for the quickest refund.
- Be alert for IRS letters; the IRS is sending out letters regarding stimulus payments and Child Tax Credits.
- Consider using tax returns to pay off debt, or for a down payment on a new home!
If you’re planning to purchase a home upon tax returns, then be sure to enroll in our ONLINE and FREE digital homebuying course! This course provides straight-forward information on buying a house, preparing you for the process start to finish.
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