Year-End Tax Tips for a Successful Tax Season
There are always changes going on in the tax world, legislation always making things interesting for us. Here are some things you can do NOW that will make your tax return go smoother.
Record Keeping
There are many different aspects of a tax return that depend on your records. It’s best to have a summary of the following:
- Medical expenses
- Charitable deductions (both cash and non-cash)
- Child-care expenses
- Quarterly estimated taxes you paid
Smooth Operator
Here are some things you should do in JANUARY 2022 that will make your tax return go smoother.
Keep the copies of all letters received from the IRS. They are sending out many letters by January 31, 2022 that are critical to the preparation of your return.
- Monthly child tax credit payments will be reported by the IRS to you on Letter 6419
- Economic Impact Payment, aka EIP, aka stimulus #3, will be reported by the IRS to you on Letter 1444-C.
Please note, incorrect reporting of these items on your return will result in delayed processing of your tax return by the IRS.
Higher EDU
Are you or your dependents enrolled in higher education in 2021?
- Log in to the school’s student portal and have a copy of Form 1098-T included with your tax paperwork.
It is in YOUR best interest to be prepared ahead of time. As of today, the 2021 filing deadline is April 18, 2022. You don’t want to be scrambling for these records at that time!
Happy almost filing season!
The CPA Nerds