Prepare for the 2022 Tax Season for Individuals
Recently the IRS released publication 5349 (Rev.12‐2021) on tax planning for the upcoming tax season. A good start to preparing for the upcoming tax season would be to compile the necessary information needed to prepare your return.
This information includes items such as:
Personal Information
Social Security Numbers for you, your spouse and each of your dependents.
The date of birth for you, your spouse and each of your dependents.
Your banking information to set up direct deposit.
Income from W‐2s
1099s Deductions
Medical and dental expenses
1098 MIS
Property taxes paid
Charitable contributions
Receipts from organization donated to or Childcare expenses
Caregivers SSN or organizations EIN or 1095‐A for the Health Insurance Marketplace
Keeping track of these items throughout the year and having them ready for tax season will make getting your tax return completed much easier. There are also a few things to monitor throughout the year to mitigate paying taxes in April.
If you are a W‐2 employee, make sure you are withholding enough money from your paycheck. If you are self‐employed, make sure you are paying your quarterly estimated tax payments. These estimated tax payments should be made by April 15th, June 15th, September 15th, and January 15th. These estimates are typically determined by filling out form 1040‐ES using prior year information. It is also a good idea to use direct deposit to receive your refund. Using direct deposit, you should receive your refund within 21 days. Having a check mailed instead of direct deposit typically takes longer than 21 days and is less reliable. Following these steps will not only help yourself but it will also help your tax preparer as they will not have to keep coming back to ask for items they don’t have.
By: Nathan Kirby, Tax Senior at CROFT & FROST
Sources:
www.irs.gov/pub/irs-pdf/p5349.pdf
www.irs.gov/refunds/what-to-expect-for-refunds-this-year