Preparing Now for 2022

           There are simple steps all of us can take now to make the filing process in 2022 go as smoothly as possible. Let’s not overlook the fact that we are about a month away from this starting. Here are a few tips that might keep you from being caught off guard.

          Organize your tax records. One of the most stressful parts of tax season is searching for documents. We can start to lessen that stress by gathering, or preparing to gather, forms like a W-2 from an employer, a 1099 from unemployment compensation or a pension. Also make sure to have any records related to digital currency transactions. Make it a habit to keep this documentation for at least 3 years.

          Review your withholding. Make sure that your withholding is in the right place to start 2022. If there was a surprise tax bill this year, or a larger than expected refund, your withholding might need to be adjusted. You might also consider what changes have happened this year. Did you get married or divorced? Have a new child? Did you take on a new job? Since life does change, your withholding may need to adjust as well. Your Qualified Tax Professional can help in making these changes.

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