Stand-by tips for tax day
Many of you like us have been doing your taxes for a long time now. We are sure there are a few of you who may be new to it, where your former spouse took the lead in the past and now the task is handed off to you, we thought we would offer a few reminders in preparation for April 18th!
Marie Deary of Wealth Management Financial Advisors relays that for an accurate return;
Collect all Documents beforehand
Make sure stimulus payment and advance Child Tax Credit information is accurate. In addition to collecting W-2’s, Social Security documentation and other income-related statements, it is important people have their Economic Impact Payment information on hand when filing.
Key Documents you may need to gather
for your 2022 tax filing
- Form W-2, which your employer will provide. This form lists how much you were paid in 2022, as well as how much in taxes you withheld.
- Form 1098, which shows how much you paid in interest on a mortgage or student loan.
- Form 1099, which reports income that you made working as an independent contractor or from unemployment benefits. You might also receive Form 1099-INT, which reports savings account interest earnings.
- Records for any stocks or other investments that you sold in 2022, including crypto transactions or other digital assets.
- Form 1098-T, which is a tuition statement for higher education expenses.
What to bring?
- Identification, including current government-issued photo ID
- Social Security cards or ITINs for yourself and all household members, including a spouse and dependents (if applicable)
- Any IRS letters or notices received (and related documents)
- If filed, a copy of a tax return for the years (s) in question
- All 2022 tax documents.
Don’t get caught off guard
If you are age 72 or older, make sure you’ve taken our required minimum distribution ()RMD) from your retirement accounts before the end of the year or else, you face a 50% penalty on any undistributed funds (unless it’s your first RMD, in which case you can wait until April 1, 2023).
If you haven’t contributed to your retirement accounts already, now is the time. Review your earnings for the year and take advantage of any deductions that can lower your tax bill. Also, keep an eye on Washington for any last-minute tax changes that can affect your return before you file. Tax season will be here before you know it, and it’s never to early to start preparing.
Marie Deary –Wealth Management Financial Advisors –
info@wealthmanagementlb.com
562-427-8877
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