It Is Time To Prepare For Tax Return 2022: Getting Ahead Of The Pack For 2023 Filings

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Over 85 million taxpayers are again at that time of year when they will seek professional help to submit their income tax return for 2022. And if you are on this list, get your papers in order way ahead of the pack. It will save you a lot of trouble later.

There are receipts, forms, and other important documents to be considered before tax day approaches. The Internal Revenue Service has advised tax filers to take the simple steps necessary to file their income tax return for 2022.

All they have to do is start early as there is still time, take stock of the papers they have in hand, and the papers that you would need to collect from various sources including your employers, bank, and other places where you have conducted monetary transactions.

You can get most of your documents online. You would also need to be aware of the changes that have happened over the past year and get in touch with an authorized filer. And finally, you should get access to a convenient online tool.

And finally, armed with these tools, you can be assured of a perfect tax return in 2022. Filers can also get access to useful information to get their tax records straight through online tools and resources.

Simple Steps Towards A Flawless Tax Return 2022

The IRS has encouraged tax filers to go in for small incremental steps and get their papers ready by the end of 2022 to make tax return 2022 a much smoother process. This preparation will give you sufficient time to preview any change in tax laws and rules, and give you sufficient time to review all convenient online tax filing tools and choose the one that best suits you. With these simple steps, tax filers can approach the fresh tax season with the utmost confidence.

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The Get Ready page of the IRS will provide thorough guidance on what is new and what are the points to be considered when going for the 2022 income tax returns.

Getting Your Records For Tax Return 2022 Ready In Advance

As filers get ready for tax returns in 2022, they should start by gathering the relevant records well in advance. Taxpayers should gather all annual income documents beforehand to help ensure that they file a complete and accurate tax return and avoid delays in the refund process. Filing on time will also save you on fines and penalties.

Separate all the necessary records including the 1099s the W-2, receipts, canceled checks, and other documents that are relevant to income, deductions against income, or credits on the tax return.

As a filer, you should have already received income documents that might include Form W-2 pertaining to wage and tax statement, Form 1099-MISC which relates to miscellaneous income, Form 1099-INT, which is interest income, and Form 1099-NEC, regarding Non-employee compensation.

Other forms include 1099-G for several government payments that include unemployment compensation or tax refunds by states. There is also Form 1095-A for filing Health Insurance Marketplace Statements.

Other Steps That You Should Take To Prepare For Tax Return 2022

One of the things that you should check out as 2022 draws to a close is to take advantage of the Tax Withholding Estimator. This is an online tool that helps out tax filers arrive at the right amount of tax that they should withhold from their paycheck.

For some, it could be a time of major expenses like marriage, divorce, welcoming home a child, or changing jobs. Taxpayers may also need to consider the estimate of tax payments incurred from non-wage income from self-employment, unemployment, digital assets, or even annuity income.

The final quarter payment for the tax year 2022 becomes due on January 17 next year. The Estimator can also help wage earners to get an estimate if they have to make provisions for additional tax payments, adjust their withholding, or submit fresh W-4 forms to employers to avoid any sudden tax bill when they go in for filing their income tax return 2022.

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Even as filers collect relevant documents, they should keep in mind that all income is taxable unless expressly declared as non-taxable. Such income includes refund interest, unemployment income, and income from digital assets and the gig economy.

Taxpayers should also declare income from part-time work, side hustles, or the sale of goods. The reporting threshold was lowered under the Biden-signed American Rescue Plan Act of 2021 for 3rd-party networks that process the payments of those who are in business.

Before 2022, Form 1099-K was valid for 3rd– party payment transactions when the transactions were over 200 for the tax year and the aggregate amount for such transactions was over $20,000. But now any single transaction that is over $600 can lead to a 1099-K.

Getting The Right Tax Preparer For Tax Return 2022

You must decide on your tax preparer well in advance and schedule an appointment with them. This will enable you to complete your returns sooner and will give you time to file for an extension should you require it.

If you are in line for a refund, you will even get that way earlier if you get your papers in order quickly. Waiting too long to schedule an appointment with your preparer might not take place before the deadline for the filing. There is the chance that you would miss out on any chance to lower your tax bills.

It is also imperative to come open about your charges. It will depend on the complexity of the returns and also the work volume that the preparer would be expected to do. It is advisable to stay away from firms that charge a percentage of your tax refunds.

The IRS website is another reliable source for tips for selecting your tax preparer and getting a link to the preparers’ directory on the site. You also get details of credentials and location.

Another important issue for taxpayers to look out for is whether they can get their filing date extended in case of a natural disaster in their area. In 2022, Hurricane Ian ripped through Florida, and victims were granted an extension on filing their tax returns. You should consult your tax consultant or look out for announcements about disaster relief.

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