Get ahead on your 2022 tax filing

Get ahead on your 2022 tax filing

The deadline for your 2022 tax filing is only a few months away. You may think that’s plenty of time, but it is always better to start early, be prepared. It’s even better to file early if you can. Here are a few pro tips to help you avoid the last-minute stresses of tax season.

Tips to stay ahead on your tax return in 2022

For most people, a frantic, last-minute rush is par for the course when it comes to filing their tax returns. However, there really is no need to manage your taxes in this way. By taking a few simple steps early in the season, you can ensure that your taxes are wrapped up efficiently, accurately, and without stress. Here are four simple steps to help you stay ahead.

  • Organize your records: The best way to avoid last-minute stress is to ensure that all your tax documents are collected, collated, and filed at all times. This includes pay stubs, receipts, etc. Don’t leave paperwork at the bottom of a desk drawer. Nor should you save your electronic documents in a haphazard way. This will have you searching for hours through folders and email attachments to get them in order. Organize everything as you go.
  • Set up an online IRS account: With an online IRS account, you can get immediate access to your tax records without having to reach out by phone or email. Then you can work faster and more accurately as you prepare your taxes.
  • Check on the annual changes to tax rates and deductions: At the end of each year, the IRS announces rate adjustments. Make sure you stay on top of these so you can file accurately and timely.
  • Get the help of a CPA: One of the best ways to rid yourself of the stress of filing your taxes is to leave the job to a professional. A certified public accountant knows all the rates and regulations, will be able to guide you through the filing procedure, and will know what it takes to file on time and with the most benefit to you.   

As you prepare your taxes for the coming year, reach out to Georgen Scarborough for help. We are a firm of CPAs based in Vienna, Virginia. Contact us if you need help with your 2022 tax filing.

Learn more about current ax laws in the Wall Street Journal’s Tax Guide 2022.

Tax inflation adjustments for 2022

Tax inflation adjustments for 2022

At the end of last year, the IRS announced its latest set of tax inflation adjustments for 2022. It is very important that both individual taxpayers and businesses familiarize themselves with these changes so that they can make the necessary provisions for their tax filing and payments in the coming year. Here is a brief look at the most important adjustments.

Adjusted tax rates for 2022

Among the most important new provisions for the new tax year are the following:

  • The standard deduction for married couples filing jointly has risen by $800 from $25,100 to $25,900.
  • The standard deduction for individual taxpayers has risen to $12,950 (up $400)
  • The maximum Earned Income Credit has also risen. It now stands at $6,935—a $207 rise from the previous year.
  • As of 2022, the dollar limitation for employee salary reductions for health flexible spending arrangements increases to $2,850.
  • The foreign earned income exclusion is $112,000, as opposed to $108,700 in 2021.
  • Deceased estates (for people who pass away during 2022) have a basic exclusion amount of $12,060,000, up from a total of $11,700,000 for estates of decedents who died in 2021.
  • The annual exclusion for gifts increases to $16,000 for 2022, up from $15,000 for 2021.

It is advisable to get the assistance of an experienced certified public accountant (CPA) to help you manage your taxes in 2022. CPAs always have a complete grasp of the new tax limits, rates and regulations, and will know exactly how to apply them to your income and tax requirements. Georgen Scarborough is a firm of CPAs based in Vienna, Virginia. Contact us if you need help managing the tax inflation adjustments for 2022.