As the official opening of the 2023 tax season is almost among us, there are a few things that experts want people to do before the IRS begins accepting returns. While the tax season for business returns began on January 12th, the IRS has also recently announced that they are opening up for individual returns on January 23rd
Don’t Wait – Seek Tax Prep Assistance
Most individual filers always ponder whether they will do their taxes themselves, or hire an expert to assist them. For those seeking tax assistance, it’s better to find a professional now rather than in March. As the busy season is in full swing during these months, some firms may not be able to take on more clients during this time. Hire an expert as soon as possible to stay ahead of the game.
Take Steps to Reduce Tax Bill
The fourth quarter estimated tax payment for 2022 is due on January 17th. Filing this payment on time will not only minimize late penalties but could also reduce your tax bill ultimately.
Those that make retirement contributions are allowed to contribute until the filing deadline is April 18th, 2023. Depending on the individual’s income and workplace retirement plan, they may be able to get a tax break from pretax IRA contributions.
When it comes to healthcare, those who are enrolled in an eligible health insurance plan are given the ability to make a health savings account contribution.
Get Organized
It is never too early to begin organizing all the forms needed for your 2022 tax return. Making a checklist to ensure all the correct forms are where they need to be is always a great strategy. The common forms include the W2, and 1099’s. Form 1099-G is also a common form that is sent to people receiving unemployment income. This is just the tip of the iceberg when you’re getting your affairs in order.
Wrap Up
Now that the dates have been announced, tax filers and tax professionals should be gearing up for this upcoming tax season. To stay the best prepared, give your accountant or advisor a call to see if you can provide them with any information that would make things go smoothly this year.