The year is coming to an end and we start making the list of goals for 2023. Rarely we consider preparing for tax season. Today at FREEDOM GES we want to teach you how to prepare on time and in an organized way so that when the day comes to do your taxes you avoid delays and headaches. Planning ahead can help you file an accurate return and avoid processing delays that can increase the time you wait to receive your tax refund.
1. Access your account information online
Use an online account to securely access the most up-to-date information available about your federal tax account and view your most recently filed tax return information.
- View taxes you owe, payments, and payment plans
- Make payments and request payment plans Access your tax records
- Electronically sign a power of attorney authorization from your tax professional
- Manage your IRS communication preferences.
2. Gather and organize the necessary documents
Having organized tax records makes the complete and accurate preparation of your tax return easier. This helps you avoid errors that lead to processing delays and lengthen the time your refund is issued, and may also help you discover deductions or credits you may not have realized you might be taking. Do not file until you have your tax records, including:
- W-2 forms from your employer(s)
- 1099 forms from banks, issuing agencies, and other payers, including unemployment compensation, dividends, distributions from a pension, annuity, or retirement plan
- Form 1099-K, W-2, or another income statement if you worked in the sharing economy
- Form 1099-INT, if you were paid interest
- Other income documents and digital asset transaction records
- Form 1095-A, Status of Marketplace Health Insurance, to reconcile advance payment or claim the Premium Tax Credit for 2022 Marketplace Coverage
- Letters from the IRS or other agencies
- Notice CP01A with your new PIN for identity protection
- Notify the IRS if your address changes and notify the Social Security Administration if there is a legal change in a name.
Remember, most income is taxable. This includes: Unemployment income, interest received, income received from the sharing economy, and digital assets.
3. Check your ITIN (personal taxpayer identification number)
An ITIN only needs to be renewed if it has expired and is needed on a US federal tax return. If you do not renew an ITIN that is about to expire or expired, the IRS can still accept your tax return, but it cannot delay tax credits owed to you, such as the Child Tax Credit and the American Opportunity Tax Credit, which may affect when you receive your refund. If you did not include your ITIN on a United States federal tax return at least once for tax years 2019, 2020, and 2021, your ITIN will expire on December 31, 2022. As a reminder, ITINs with the middle numbers 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, or 88 have expired. Also, ITINs with the middle digits 90, 91, 92, 94, 95, 96, 97, 98, or 99, IF issued before 2013, will expire. If you have already submitted a renewal application and it has been approved, you do not need to renew it again. The IRS processes applications in the order in which they are received. The IRS is currently working on ITIN applications received in July 2022. We appreciate your patience. You will be notified once your ITIN is assigned or if additional information is needed.
4. Check what your tax withheld was for the year
Consider adjusting your withholding if you owed taxes or received a large refund when you filed. Changing your withholding can help you avoid a tax bill or allow you to keep more money from each paycheck. Credit amounts can change each year, so visit IRS.gov and use the interactive Tax Assistant to identify if you qualify for any tax credits that may require an adjustment withholding. Life changes – such as getting married or divorced, the birth of a child, or getting a second job – could mean a change in withholding. Use the Tax Withholding Estimator to help you calculate the correct amount of tax to withhold from your paycheck. This tool on IRS.gov will help you determine if you need to adjust your withholding and submit a new Form W-4 (SP) to your employer. Consider making estimated tax payments. If you receive a substantial amount of income that is not from wages, such as self-employment income, investment income, taxable Social Security benefits, and in some cases, pension and annuity income, you must make quarterly tax payments estimates, the last payment for 2022 is due on January 17, 2023.
5. Open a bank account if you do not have one yet, it is the most recommended
The fastest way for you to receive your tax refund is to file electronically and choose direct deposit. Direct deposit gives you access to your refund faster than a paper check. Get your routing and account number by accessing your online banking account or by contacting your bank.
At FREEDOM GES we are here to help you with everything related to personal and business tax preparation. Call today and schedule an in-person (West Palm Beach) or virtual appointment from anywhere in the United States or even from abroad if you need to file taxes in the country.
122 N Military Trail suite f, West Palm Beach, FL 33415
