It’s time to start thinking about moves you can make right now to improve your 2022 tax situation. There are about two and a half months left in the 2022 tax year, so don’t put these money-saving moves off. Waitng can cost you money.
CATCH UP ON MISSING RETURNS
First, catch up on any tax returns you haven’t filed for past years. You must be up to date with your tax returns if you are going to apply for an IRS Fresh Start Initiative including an Offer In Compromise to resolve any tax debt.
If you have any questions about what steps to take now to clear up previous years’ tax returns call one of our tax resolution experts now for a free consultation about what to do. We can take you through the process step by step to file returns from years you missed and to determine if you’re eligible for the IRS Fresh Start Initiative and the IRS Offer In Compromise program. There are other money-saving strategies we can discuss with you, and if you have a business we can discuss the business services we offer to help your business run smoothly and to make your tax situation run better.
The initial free telephone consultation will take 15 minutes. You’ve got 15 minutes so call us.
There are other things taxpayers can do before the end of the year to help you get ready for the 2023 tax filing season which is when you will file your 2022 tax return.
ORGANIZE YOUR RECEIPTS
Start organizing your receipts and tax records. Try the envelope system, for example, with an envelope for different types of tax deductible expenses.
DONATIONS TO CHARITY
There is still time to make a donation to charity. But before making a donation, make sure the organization is eligible for tax-deductible donations. The IRS publishes a list of approved charities.
CHECK YOUR ADDRESS
Taxpayers who moved should notify the IRS of their new address. Also notify the Social Security Administration. And it’s not silly to verify your address with employers and casinos for W2, 1099 and W2G forms.
RETIREMENT CHECK
Here’s a big one: give yourself a retirement plan checkup. This includes resources for individuals about retirement planning, contributions and withdrawals. Money you can save now may cut your 2022 tax bill.
CHECK WITHHOLDING
Check your tax withholding. You want to be sure your budget is accurate so there is no April surprise and you owe money. On the other hand, you don’t want to be sitting in 2023 waiting for a huge refund on your 2022 tax return. So give yourself a checkup on your withholding and what you expect to owe, if anything, when you file your 2022 return in 2023.
CHECK YOUR STATE INCOME TAX SITUATION
You might also face income taxes in the state where you live or work. Check that state tax situation as well. Remember that our tax experts can help you with your state income tax situation as well.
WATCH YOUR YEAR END BUDGET
Here;s a warning we have to make: don’t overestimate your tax refund in 2023 for your 2022 taxes. Your refund, if you get one, might not arrive in time to pay for big spending during the 2022 holiday shopping season. The IRS still has a backlog of tax returns waiting to be processed. Your 2022 tax refund. if you are entitled to one, might be delayed through no fault of your own. The latest estimate is that the IRS has more that 6-million individual tax returns waiting to be processed.
ELECTRONIC FILING
Prepare for electronic filing in 2023 because if you do file electronically there’s a good chance you’ll see a refund in less than three weeks if your tax return is in order. It also makes sense to us that if you file your 2022 tax return early in the tax season, say in February of 2023, you might improve your chances of getting a faster refund.
ASK ABOUT AN IRS FRESH START NOW
And by the same token, we think that if you apply for an IRS Fresh Start Initiative or an IRS Offer In Compromise now — before the usual “seasonal rush” of applications — it might also help your application be processed. Call to speak with one of our tax specialists for guidance and to determine if you are eligible for the IRS Fresh Start Initiative or the IRS Offer In Compromise Program. There are other ways we can help you resolve your tax debt if you are not eligible for the Fresh Start Initiative and the Offer In Compromise and we’ll discuss these with you at no charge.
ASK QUESTIONS
Most importantly don’t be afraid to ask questions. Your questions are not trial to us. Take advantage of our free telephone consultation. A few words now may be able to help you avoid a world of problems later so please call us. And use our website for free information and news about the IRS. We always suggest that you discuss your personal tax situation with a tax professional. And remember, there are no fees or membership dues to use our website news and information. And our tax resolution experts never charge for the free consultation they offer.