JANUARY 12, 2023
Procrastination rarely pays, especially when it comes to taxes.
Here’s how to get all your ducks in a row before filing your taxes.
That’s the first day the IRS will accept 2022 tax returns, although most have until April 18 and Californians affected by recent storms get until May 15.
First, make sure you have a full accounting of your income and capital gains, including:
–Employment –Investments –Social security –Alimony received –Gambling winnings
While employers are required to send out W-2s by January 31 at the latest, you may have to wait until February or even early March to get the 1099 forms you’ll need for your investments.
Next make a list of all possible deductions you may be eligible for, such as:
–Mortgage interest –IRA contributions –Medical bills –Home office (if self-employed) –Charity
If you plan to use a professional tax preparer, contact them early in the season when they aren’t already slammed.
If you’re doing your own taxes, schedule an hour or two when you can do them without interruption. And remember, the earlier you file the sooner you’ll get your refund.