Tips for a Stress-Free 2022 Tax Season

Tax season is here! It feels like yesterday when we were discussing the 2021 tax season and now here we are getting prepared for 2022. With another unpredictable year in the books, you may be wondering, how is this going to affect my taxes and potential return? Remember, the My Accountant Bookkeeping and Tax Service Inc team is here to help! If you already know you are wanting to meet with a qualified accountant, you can set up an appointment here. In the meantime, here are some tips and bits of information to make this tax season simple and painless.

Important Tax Dates

January 24, 2022: Tax season is officially open and the IRS is ready to accept returns. 

April 18, 2022: Deadline to submit your return or to request an extension in the case you are unable to complete your return on time.

October 17, 2022: If you received an extension, then you must complete your return by this date. 

2022 Tax Tips

• Although the tax season officially opened on the 24th, you may not receive all of your necessary tax documents such as a W-2 from your employer or a 1098 from your mortgage holder until early February. The deadline for these documents to be mailed out is January 31st. 
  • Although you can file in January, you want to confirm that you have received all of the necessary tax forms. This will ensure you have accurate data when completing your return and help you to avoid having to file an amended return.

• The IRS is expecting some delays in processing tax returns due partially to employees being ill with Covid-19, staffing shortages, and a larger than usual number of backlogged returns from 2021. 
  • Because the IRS is warning taxpayers of potential delays, it is always recommended to file your taxes sooner rather than later. The sooner you file the sooner you will typically get a return (if you don’t owe money).
  • It is also important to file early to lower the risk of being a victim of tax identity theft. Tax identity theft occurs when someone files taxing using your social security number to get a return. You may not even know you are a victim of this until you go to submit your return and see that a return has already been processed on your behalf. By filing early, you are giving the fraudster less opportunity to file with your information.

• The IRS is estimating a 21 day turnaround time to receive your return.
  • The best way to ensure you get your return as soon as possible is to file electronically and request your return be directly deposited into your account. Not only is this more efficient but it is also more secure than sending highly sensitive information through the mail and waiting for a physical check to arrive (which can sometimes be lost or intercepted). 

• Millions of Americans received a monthly stimulus advance as part of a child tax credit. Depending on the child’s age and the amount of children you have will determine how much you received monthly (if you didn’t opt out of monthly advancements). If you received monthly payments, then you should have received half of the child tax credit over the course of 6 months. Once you file your return, you will receive the second half. If you didn’t receive monthly payments then you will receive the full amount on your return.
  • Keep your eyes open for the tax form from the IRS titled 6419. This shows the total number of advance payments you received. (Make sure the figures on the form match the actual funds you have received from the IRS.) This form will also help you complete your taxes and the IRS is strongly urging you to keep this with the rest of your tax forms.
    

• Accountants tend to get booked far in advance during tax season. If you have any concern that you may need professional assistance when it comes to preparing or filing your taxes, it is best to schedule an appointment sooner rather than later. Scheduling sooner will give you more flexibility when trying to meet with your accountant and align your schedules.  

• Get prepared! Ensure you have all of your tax documents and forms ready to go (an accountant can also help you prepare your documentation and you can then file on your own)! Also decide if you want to enlist the help of an accountant to submit your return or look into softwares that may best suit you. You may also want to determine if you are going to take the standard deduction or choose to itemize your deductions. 

Let’s be honest, no one wants to file their taxes, but we must. Remember having an accountant means having someone in your corner and on your side! If you feel overwhelmed, you don’t have to—follow the tips above to be informed and prepared. And remember, the My Accountant Bookkeeping and Tax Service Inc team is here to help!