Filing Your Return
As we approach the beginning of the 2022 tax filing season, I wanted to touch base with you to provide some important reminders and best practices to help you navigate the process. Whether you are preparing your taxes on your own or working with a professional, keeping the following key points in mind will help ensure that your tax returns are filed accurately and on time.
Gather Essential Tax Documentation Accuracy is key when it comes to preparing your tax returns. To avoid missing any deductions or credits, it is essential that you gather all relevant tax paperwork and records before you begin. This includes:
- Social Security numbers for all individuals listed on the tax return
- Bank account and routing numbers
- Income documents such as W-2s, 1099s, and 1098s, as well as records of any digital asset transactions
- Health Insurance Marketplace statement (Form 1095-A)
- Any IRS letters referencing specific tax deductions or credits
Report All Sources of Income It is important to report all sources of income on your tax returns to avoid receiving a notice or bill from the IRS. Make sure to include income from:
- Online sales or trades of goods or services
- Investment income
- Part-time or seasonal work
- Self-employment or other business activities
- Services provided through mobile apps
Electronic Filing and Direct Deposit To minimize processing time and receive your refund as quickly as possible, we highly recommend that you file your tax returns electronically and opt for direct deposit. Tax preparation software can be a valuable tool, as it will help you avoid mistakes by doing the math and guiding you through each section of your tax return in a question-and-answer format. Avoid paper returns, as they tend to take longer to process and may be subject to errors.
For those who are waiting for their 2021 tax returns to be processed, it is important to remember to enter $0 (zero dollars) for last year’s adjusted gross income (AGI) on the 2022 tax return to ensure that it is accepted for processing by the IRS.
In conclusion, by following these key points, you can help ensure that your tax returns are filed accurately and on time, and minimize any potential delays in receiving your refund. If you have any questions or concerns, please don’t hesitate to reach out. I am here to assist you in any way that I can.