Though the deadline to file your taxes is April 18, 2022, it’s never a bad idea to prepare yourself early. The Weslaco accountants at Gonzalez & Arrambide are here to help! It’s our goal to guide you along the way and answer any tax questions you may have.
That’s why we’ve created a set of tips that will help you have a smooth and straightforward tax season.
Be Aware of Your Filing Status
When you go to file your taxes this year, it’s important to provide the IRS with the correct filing status, of which there are five:
- Head of Household
- Married Filing Separately
- Married Filing Jointly
- Qualifying Widow/Widower With Child as Dependent
Each filing status has different requirements, and you may be eligible for certain deductions and/or credits. For example, someone who is filing as “Single” and “Without Dependents” will not be offered the same opportunities as someone with dependents.
The IRS’s website as well as certified public accountants like our Weslaco CPAs can help citizens determine their status if they are unsure how to file.
Get Your Tax Documents Together
Upon knowing your proper filing status, the next step is to organize all the necessary papers to file your return, some of the usual ones being:
- W-2 Forms – This document shows the income you received from your employer, and they will generally have this ready for you by the end of January.
- 1099 Forms – Those who are self-employed are given individual 1099 forms from clients detailing how much they paid you.
- 1099-DIV – This form reports any income related to investments such as stocks, bonds, etc.
- Copy of the Previous Year’s Tax Return – This should remind you of any information necessary to file your 2021 tax return.
- Form 1098 – This document pertains to homeowners and relates to any mortgage interest paid.
- Form 1098-E – If you are or were a student, this form details the amount of student loan interest paid during the year.
While this is far from a full list, the Weslaco certified public accountants at Gonzalez & Arrambide are here to help you understand exactly which forms are important to you!
Ensure You Update Your Name and Address
If you’re in a different living situation or you’ve changed your name for whatever reason, it’s important to make sure this information is updated with the IRS and Social Security Administration.
- Legal Name-Change – Reach out to your local Social Security office and provide proof of identity such as a government-issued identification.
- Change of Address – Either mail a change-of-address form to the IRS, call them and update the information, or provide the new address on your latest return.
Though this may seem like obvious advice, something so simple can cause complex problems if not properly addressed beforehand.
Maximize Your IRA Contributions
An IRA, or individual retirement account, is a wise investment for adults of all ages and even wiser to contribute as much as possible before the deadline. If you are younger than 50, you may contribute a total of $6000 while those 50 and older may contribute a total of $7000 in the 2021 tax year.
Keep in mind that the deadline to make more payments into your IRA is April 15, 2022.
Best Tax Advice in the Rio Grande Valley
While filing taxes can be intimidating and sometimes confusing, the Weslaco accountants at Gonzalez & Arrambide are here to lessen those burdens. If you have any more questions, we are more than happy to talk you through the answers until you understand taxes as well as we do!