A Tax Return To-Do List

Taxpayers can start getting ready for the 2023 tax year by taking a few steps now, like donating to charity, checking on their retirement contributions, and setting up direct deposit to receive their tax refunds. These, however, are only a few of the things that taxpayers can do to help them prepare for tax season. To learn more about what you can do to get ready to file your 2022 tax return, please call our dedicated tax return preparation legal team today.

Check Your Individual Taxpayer Identification Number

The IRS issues Individual Taxpayer Identification Numbers (ITINs) to individuals who don’t have or aren’t eligible to obtain a Social Security Number (SSN). These numbers can expire, so it’s important to check them and if necessary, renew them before filing next year’s tax return. For instance, the ITINs of those who failed to use them when filing a tax return in 2018, 2019, or 2020 expired on December 31, 2021.

Contribute to Your Salary Deferral Retirement Plans

Taxpayers should also think about contributing a salary deferral to any of their qualifying retirement plans, which can help when attempting to maximize the tax credits for which they are eligible. It’s also a good idea to check one’s total salary deferral contributions to make sure they don’t exceed the $20,500 limit that was put in place for 2022.

Donate to Charity

Taxpayers who want to deduct charitable donations on their 2022 returns will need to make those donations to a qualifying tax-exempt organization by December 31st. Most charitable cash donations qualify for the deduction, including donations made by check, credit, card, debit card, and even unreimbursed out-of-pocket expenses spent in connection with volunteer services. While most charitable cash donations qualify for the deduction, there are a few exceptions.

IRA owners who are over the age of 70 1/2 years old can transfer up to $100,000 to charities tax-free every year. These contributions are known as qualified charitable distributions or QCDs and are a good way for senior taxpayers to donate to charity before the end of the year. QCDs also count toward the IRA owner’s required yearly minimum distribution.

Set Up Direct Deposit

Taxpayers who want to get their tax refund faster should consider filing their tax return electronically and signing up for direct deposit. Those who take this route can expect their refund to be deposited directly into a bank account, often within a few weeks of filing. Paper tax returns, on the other hand, often take a lot longer for the IRS to process.

 Call Today for Help Filing Your Taxes

By filing electronically, setting up direct deposit, checking or renewing your ITINs, and donating to charity before the end of the year, you can help next year’s tax return preparation and filing process go more smoothly. To learn more about the steps you can take when filing your taxes, don’t hesitate to call experienced CPA, former FBI Special Agent, and tax return preparation lawyer Ronald Cutler, P.A. You can set up a free consultation with a member of our legal team by calling 386-490-9949 or by completing one of our online contact forms.

Sources:

irs.gov/newsroom/before-toasting-the-new-year-taxpayers-should-review-this-to-do-list

irs.gov/newsroom/expanded-tax-benefits-help-individuals-and-businesses-give-to-charity-in-2021