And So It Begins - 8 Tips to Prepare your Tax Return
The IRS will begin accepting tax returns on January 24, 2022. Although they are incredibly backed up in processing prior year returns, with some six million unprocessed individual returns from 2020, they decided to have yet another tax season. How can you help your tax return make the cut?
1) Be organized. Take a moment to recall everything that happened in 2021 that could have a tax effect (I’m talking about you, advanced child tax credit!), then make sure you have all the documents and information required to prepare an accurate tax return. Many returns still being processed were identified as having errors or missing information.
2) Everything they mentioned on the news as being tax free must still be reported on your tax return. Let us know about it.
3) Use your organizer. We prepare organizers every year for a reason. They contain most of the information you provided in 2020 and are the best way to determine if you have the information you need for filing this year.
4) Make notes. Did you have a child in 2021? Let us know. Did you sell land? Let us know. Whatever it is, feel free to let us know about it. Give us a few notes about what happened in your life last year and write down any questions you may have for us.
5) Make sure you have the documentation for the 3rd Economic Impact Payment. The IRS will mail this to you this month. Not having this will slow processing of your tax return.
6) Return phone calls promptly. 90% of the tax returns we prepare are missing some piece of information. The quicker we receive the answers to our questions, the sooner your tax return may be filed.
7) File electronically. The amount of manpower needed to open and process paper returns is incredible. Get your return to the front of the line by filing a correct return electronically.
8) Pay electronically. Many of you are used to paper vouchers and mailing paper checks. To ensure your payments are received and recorded properly, pay electronically.