Share Article

Tips for a Smoother Tax Season

As we turn the page to 2022, we all start to think about our new year’s resolutions. Perhaps you will consider going to the gym, eating healthier, or spending more time with family. While the topic of taxes may not be the first thing on your mind, this is a great opportunity to consider some tax resolutions to help set yourself up for a successful financial year.

1. Gather and organize your tax documents early

Starting in early January, you’ll begin to see tax documents coming either in the mail or electronically. These will include Form W-2s, 1099s, economic stimulus or advance Child Tax Credit letters, among others. Organize all your documents in one place and peek at last year’s tax return to remember what else you may be waiting on. In addition, there are some documents you might need to complete your return that you will not receive a form in the mail for – such as charitable contributions, medical expenses, or self-employed business information. Of note, even if you do not itemize, there is a special charitable deduction in 2021 (for those who take the standard deduction) of up to $300 for single taxpayers or $600 for married filing joint taxpayers. Remember that the earlier you gather your tax documents, the sooner you can file your return and avoid an extension.

2. Think about tax planning now

The beginning of the year is the perfect time to start thinking about tax planning. For 2022, there are increases to the maximum contribution limits to 401(k)s and HSAs. Make sure if you are wanting to maximize this benefit that you change your payroll elections now so that you aren’t having to catch up closer to the end of the year. Similarly, if your withholding was too much or too little in 2021, make changes to your W-4 with your employer so t