Gathering all the documents you will need will make your Tax Report less stressful
Tax planning is stressful. We have all been there - trying to go through piles of paper and gather as many documents you think are needed to get your tax return prepared. Below we have come up with a few steps to make the process easier.
Gather all your Documents:
Organize tax records to make preparing an accurate tax return easier.
W-2 from your employer (s)
Form 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan
Form 1099-K, 1099-MISC, or other income statement if you worked in the gig economy (self-employment type work).
Schedule and documentation of expenses related to any self-employment type work.
Form 1099-Int, if you received any interest
Other income documents and records of virtual currency (NFTS, Crypto)
Form 1095-A, Health Insurance Marketplace Statement (required to calculate Premium Tax Credit and avoid tax processing delays).
Letter 6419 - 2021 Total Advance Child Tax Credit Payments to reconcile your advanced Child Tax Credit Payments and avoid processing delays with the IRS.
Letter 6475 - your 2021 Economic Impact Payment, to determine whether you’re eligible to claim the Recovery Rebate Credit and/or accurately report payments received to avoid processing delays with the IRS
Mortgage Interest statement (form 1098) and Property Tax Statement
Paying too much tax at once?
Consider adjusting your withholding if you owed taxes or received a large refund last year.
Update forms W4 with your employer to account for life changes- getting married or divorced, welcoming a child, or taking a second job may also mean changing your withholding.
Take Advantage of the TAX withholding calculator available at IRS website:
How to get your refund?
The fastest way to get your tax refund is by filing electronically and choosing direct deposit. All you have to do is provide your accountant with your bank information.
What’s new for 2022
Advanced Child tax Credit: Did you receive monthly payments throughout July-December 2021 from the IRS? Check your payments schedule using the link below to confirm amounts received. Provide this schedule to your accountant so they can be reported accurately on your tax return and avoid processing delays.
Want to check your payments:
Claim Recovery rebate Credit (Stimulus Checks)
The IRS has issued all first, second and third Economic Impact Payments. Missing a stimulus payment? You may be eligible to claim a Recovery Rebate Credit on your 2020 or 2021 federal tax return if you didn't get an Economic Impact Payment or got less than the full amount. The first and second rounds of Economic Impact Payments were issued in 2020 and early 2021. The first two rounds of Economic Impact Payments were advance payments of the 2020 Recovery Rebate Credit claimed on a 2020 tax return.
The third round of Economic Impact Payments was issued starting in March 2021 and continued through December 2021. The third round of Economic Impact Payments, including the plus-up payments, were advance payments of the 2021 Recovery Rebate Credit claimed on a 2021 tax return.
Most eligible people already received the payments. However, people who are missing stimulus payments should review the information below to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2020 or 2021. Check your economic impact payment schedule using the link below to confirm amounts received. Provide this schedule to your accountant so they can be reported accurately on your tax return and avoid processing delays.