We know the year has just begun, but it's not too soon to start thinking about April 15th. Here are a few steps you can take now that may help make tax time less stressful.
- View your Internal Revenue Service account information online to review your latest federal tax information and see information from your most recent return.
- Gather your tax records and receipts early to help avoid delays when you meet with your tax preparer.
- Ask your tax professional to review tax credits vs. tax deductions, as these can change year-to-year. Remember, these preparation ideas are for informational purposes only and not a replacement for real-life advice. Your tax professional can address your specific situation.
- Review 2022 changesto tax credits with your tax professional. Specifically, consider revised rules on the Child Tax Credit, Earned Income Tax Credit, and Dependent Care Credit. Also, check up on the charitable deduction rules. 1
Now is also an excellent time to get yourself organized for next year.
- Review withholding adjustments, if needed. You’ll want the withholding amount to reflect your current situation.
- Document potential deductibles throughout the year, including mileage expenses, donations to charity, or business expenses.
- Consider changes to your employer-sponsored retirement plancontributions. Be sure you understand the role your employer-sponsored plan plays in your overall retirement strategy.
Tax management is one part of your overall financial strategy. If we still need to do so, we welcome the opportunity to coordinate efforts with your tax preparer or certified public accountant in the coming year.
Wishing you a Happy New Year!
1 IRS—Steps to Take Now to Get a Jump on Your Taxes