It Isn’t Too Early To Start Getting Ready For Tax Season
Yes, you have heard the expression “You are rushing the season”. However, it usually does not pertain to tax season! It is never too early to think about getting things organized. Before we know it, the calendar pages will be changing to a new year – 2022.
Why would you want to start getting organized for tax season? Well, planning ahead can help you with filing an accurate return and minimize the processing delays in getting your refund.
So, what is the first step to take to be better organized? Gather and organize your tax records. It is helpful for prior years’ information to be organized so that it is easily accessible if needed. Referring to your 2020 return might spur a thought of something that you need to address, i.e., address changes, name changes, etc.
Have you made any new investments or purchased a new home? Be organized with information as to your acquisition of these assets. It can be beneficial in the future.
Have you had sufficient taxes withheld from wages or made sufficient estimated payments so as not to incur underpayment penalties? If you owed taxes last year, this is extremely important. The final payment is due on or before January 18, 2022.
Did you work a second job and were sufficient taxes taken out of your wages?
If you received stimulus payments or child care credits or economic impact payments, do you have the information organized for tax reporting?
If you are a veteran, have you looked into the Veterans Benefits Banking Program for access to financial services at participating banks?
Finally, decide NOW how you will prepare your taxes – yourself, a paid tax preparer or perhaps you are eligible for free preparation through the Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) in your community. Don’t wait until the 11th hour to make this decision. If you are going to have your taxes prepared by a paid preparer, now is the time to start looking for a preparer. After all, if you are due a refund, wouldn’t you like to receive it sooner rather than later?
Yes, I AM rushing the season; but then again, it seems like tax season lasts almost all year long! Get organized, don’t wait.
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