Prepare for 2022 Tax Season NOW in 6 Steps

 

2022 tax season is about to begin, here are a few things that I experienced with my clients that you will want to do in preparation of the next tax season:


1. Get your receipts organized NOW and sent to your tax preparer EARLY. 

If you are the DYI type and don't use a bookkeeping service, it is better for both YOU and YOUR TAX PREPARER to get your receipts separated and totaled by expense and sent to her several weeks before the due date. This will give her time to review the receipts for deductibility and accuracy before reporting it on the tax return.



2. Create a file folder to keep your tax forms like W2, 1099, Profit/Loss statements, brokerage statements, closing documents for house purchases, estimated tax payment confirmations until tax time.



3. If you purchased a home in 2022 or earlier, locate the original closing statement for the home purchase and KEEP IT FOREVER! Or, at least until you sell it. Your tax preparer will need that form for when you sell your home to report the sale on your tax return.



4. If you have applied for or already have an Identity Protection Pin (IP PIN from the IRS), be sure to look for a letter in the mail in January from the IRS. The IRS will mail you a letter that will contain this PIN number.

For security purposes, this IP PIN is different every year and is only sent by SNAIL MAIL. You will NOT be able to efile without it AND you cannot get it by phone or email from the IRS. ONLY BY MAIL. If you lose or misplace it, you will need to contact them and they will MAIL another one to you.



5. Always REVIEW your tax return BEFORE you sign it. If you don't understand it, let your tax preparer know so she can help you to understand it and ask questions. Otherwise, your tax preparer may leave something out or report something incorrectly that the IRS will catch later that could cause you to owe more taxes.

6. Don't wait until the last minute to file your taxes. Your tax return is due every year on April 15 (unless the date falls on a weekend or holiday). You will begin receiving the tax forms in January/February. Keep all documents together and contact your tax preparer to get the taxes FILED when your have the documents together. Giving her time will allow for changes, tax strategies, possible extra deductions.

If you need bookkeeping, tax, and/or payroll services, my company provides all of these services and more for clients throughout the USA, so contact me if you are interested.

Bonnie Dorsey

972-672-8850


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