“In this world nothing can be said to be certain, except death and taxes.”
— Benjamin Franklin
As much as we’d like to forget about taxes, you can be sure that the government most certainly will not. That’s right – the government takes a piece of your income with every paycheck (via local, state, and federal withholding) and, if there is any shortfall, comes collecting every Spring for the difference. Or, if you’ve overpaid, you’ll get a refund! As you probably know, the taxes you pay go to fund government programs such as Medicare and Social Security and also supports initiatives at the local, state, and federal level that are designed to educate, serve, and protect all of us.
As the 2022 tax season is just around the corner, you can be sure that yet again, Uncle Sam will begin checking his mailbox for your tax returns. So…how can you best prepare and plan ahead for tax season? We’ve outlined some tips below to help you feel more organized this year:
Tip #1: Start with last year’s tax return
Your first step should be to track down and gather all of your documents from last year’s tax return. It is always wise to use last year’s tax return as a guide for the coming year because this will help you identify which files, documents, and statements you’ll likely be needing again for the current year. If you don’t have your tax return readily accessible, be sure to contact the individual or service that prepared your statement last year. With H&R Block, you can easily access your prior returns through their secure portal, MyBlock. *Pro-tip: creating a separate file or storage space for your tax returns and documents makes it so much easier to switch preparers and take care of all your financial matters in the future!
Tip #2: Gather your personal information
When preparing to file your return this year, be sure to have your personal information handy. You will need your social security number or tax ID, as well as possibly your driver’s license, passport, or other personal identification card. *Pro-tip: be prepared to have this information for you, your spouse, and any other dependents you might have.
For a complete list of what information you might need to have on hand to make filing your taxes even easier, print off this helpful checklist here!
Tip #3: Document your income
One of the first documents a tax service such as H&R Block will need is a statement of your personal income. Depending on your employment situation, you may need to present a W-2 form (the most common form for documenting wages/salary and any other withholding information), a 1099 form (of which there are many different types, depending on what type of income or distributions you’re receiving), and any other documentation to show alternative forms of income (i.e. lottery winnings, self-employment income, rental income, or alimony). You should receive your W-2 form from your employer by the end of January. You may receive tax forms in the mail or you may be able to access them through electronic delivery. With H&R Block, you can easily upload all of these documents digitally, or take pictures of the forms and securely upload to their online filing software.
*Don’t forget to document any investment income you’ve earned! You may receive tax documents from these kinds of accounts as well.
Tip #4: Determine your filing type
2021 was a pretty crazy year. If the past year brought any changes to your marital or family status, your tax season may look a little bit different than you’re used to. Depending on the changes you experienced, your tax filing type may also change. For example, if you were married in the past year, you may choose to begin filing taxes jointly with your new spouse or file a married filing separate tax return. H&R Block Online will guide you through these questions to make sure you’re filing in a way that makes sense for your situation. If you’re still not sure, the tax professionals at H&R Block are standing by to help via on-demand chat, screen share, and more.
Tip #5: List your anticipated deductions
Tax deductions are wonderful ways to potentially reduce your overall taxable income, and when you file, you’ll have the option to either take a standard deduction or individually list specific deduction items (provided you have the required receipts or proof). Most individuals take the standard deduction unless their individual deduction items end up being more than the standard deduction would have been. Itemized deductions include home mortgage interest, state and local taxes, medical expenses, and charitable contributions.
Wondering what else can be deducted?
While it does vary from situation to situation, here are some of the most common categories for deductions: interest on student loans, IRA contributions, some relocation expenses, rental property expenses, expenses related to self-employment, charitable donations, and more. Some expenses may be used to claim a credit instead of a deduction, such as childcare expenses. Not sure what can be deducted? H&R Block has tax pros ready to help every step of the way. Provided you have the proper documentation for each of your possible deductions, you just might be able to save yourself on taxes. With H&R Block, your maximum refund is always guaranteed, or they’ll give you your money back.
Tip #6: Have your bank account information handy
Decide in advance how you’d like to receive any refunds, if applicable. If you would prefer the funds be deposited directly into your bank account, then be sure to provide your bank account number as well as the bank routing number. If, instead, you’d prefer to deposit the refund into your account yourself, make sure you elect to receive a physical check in the mail instead.
For a complete list of what information you might need to have on hand to make filing your taxes even easier, print off this helpful checklist here!
This post is sponsored by H&R Block and may contain affiliate links. We’d like to thank them for their partnership and dedication to helping educate women on their retirement options and empower them to own their financial futures.
Leave a Reply