They say April showers bring May flowers, but before that can happen, we need to get our taxes
in order! Whether it’s your first time filing or your fiftieth, we understand how daunting it can be.
Thankfully, we’re here to help simplify the process.
File on Time
The Internal Revenue Service (IRS) announced the official 2022 tax season beginning on
January 24. As we’re in the thick of it, here are some important dates to keep in mind:
● April 18, 2022: Due date to file 2021 tax return or request extension for most taxpayers
● October 17, 2022: Due date to file for those requesting an extension on their 2021 tax
returns
How Taxes Are Determined
Before we dive into filing, let’s examine how taxes are determined in the first place. The
government calculates how much you owe by dividing your taxable income into tax brackets.
Those with higher incomes are responsible for higher federal income tax rates, while those with
lower taxable incomes have lower federal income tax rates. The bright side is that no matter
which bracket you fall in, you won’t pay that tax rate on your entire income.
How to File
There are several ways to file taxes. You can complete IRS Form 1040 or Form 1040-SR by
hand and mail it in (least recommended), use tax software to file online, or hire someone to file
for you. Nowadays, filing taxes has never been easier. With services like TurboTax and H&R
Block, filing online is a viable option that many opt for. If you’re worried about missing
something, hiring a tax preparer for professional guidance may be a better fit. No matter which
method you choose, what’s most important is having an accurate tax return to avoid delays and
IRS notices.
Preparing to File
Now that you’re familiar with some of the ins and outs of paying taxes, here’s what you’ll need in order to file:
● Social Security numbers for yourself, spouse, and dependents
● W-2 form
● 1099 forms
● Retirement account contributions
● Property taxes and mortgage interest
● Charitable donations
● State and local taxes you paid
● Educational expenses
● Unreimbursed medical bills
● Last year’s federal and state tax returns
Expecting a Refund?
According to the IRA, you can accelerate your refund by following three simple steps:
1. File taxes online
2. Request your refund is sent by direct deposit
3. Track your refund online
To access personal tax account information including balance, payments, and tax records, you can set up a secure account at IRS.gov/account. If you do receive a refund, there are a number of things you can do with that money to set you up for financial success in the coming year:
● Pay off interest-accruing debt
● Put it in a savings account for unexpected expenses
● Open an IRA for tax savings for next year
● Donate a portion of your return to a worthy cause, which might be able to be used as a tax write-off for next year
For more information on the 2022 tax season, please visit IRS.gov or talk with a tax professional.
