Maybe you are a deadline junkie, or have been just generally swamped with the daily grind called life. We get it! If you haven’t already, it’s time to mark your calendar for Tuesday, April 18, which is tax day this year. And if you’re feeling behind, don’t worry – there’s still time to file your taxes. Take a deep breath and follow this guide.
ORGANIZE YOUR DOCUMENTS
Half the battle when it comes to filing your taxes is gathering all the documentation and data you’ll need. This includes last year’s tax returns for reference, a W-2 or 1099 from your employer, along with statements from your taxable accounts, mortgages, or student loans. Many (if not most) of these documents will have come in the mail (or e-mail) clearly labeled as “Important Tax Return Information.” Hopefully, you set them aside when you saw them come in.
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“It can be easy to lose track of papers when you get them on January 15, and you don’t need them for another month,” says Terry Eisert, founder and owner of Eisert Wealth Management in Cincinnati, Ohio. If you didn’t put a file on your desk and label it “tax info” or at least start stashing them in your “drawer of important things” or other place where you put stuff you know you’ll someday need, start digging for the papers now.
If you did any freelance or contract work this year, you’ll need to be on the lookout for any 1099 forms that are coming in. (And whether you get a 1099 or not, you’ll need to declare any freelance or “gig” income on your taxes if you received income of $400 or more, notes the IRS.) And, if you’re planning on itemizing deductions or claiming certain credits, you’ll need supporting documentation. This may include receipts for small-business expenses, for example, as well as for charitable donations.
NEW FOR THIS YEAR: DEDUCTIONS & CREDITS
For the 2022 tax year, there’s an increase in the standard deduction to $12,950 for single filers, $25,900 for married couples filing jointly, and $19,400 for heads of household.
If you purchased a new electric vehicle after August 16, 2022, when the Inflation Reduction Act of 2022 was enacted, a tax credit is available for qualifying vehicles for which final assembly occurred in North America, according to the IRS. Simply enter your Vehicle Identification Number (VIN) on the Department of Energy’s website here to see if you are eligible.
If you purchased an electric vehicle prior to that date, check the IRS’s website or with your tax preparer to determine eligibility.
SET YOURSELF UP FOR NEXT YEAR
If this year you find yourself in a crunch before April 18, now is the perfect time to prepare for next year, and ensure you don’t find yourself right back here again. If you owed a lot of money, for example, you might want to consider increasing your withholding at work. It’s easy — just talk to HR and ask them for a fresh W-4, on which you’ll elect to have more withheld throughout the year.
You can use this withholding calculator if you need help figuring out how much. Also, if there were documents you had trouble finding or you didn’t keep the best records, start making changes now that will make the process even simpler next year.
MORE ON HERMONEY:
- This List Will Save You on Tax Prep This Year
- Tax Filing Tips for Women Who’ve Gone Through Some Stuff
- What To Do If You Can’t Pay Your Tax Bill
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