As we get closer to Tax Day, the more important it is to make sure you’re prepared to file everything correctly. It’s common to have questions around this time of year, so we’ve organized some additional notes on being ready for tax time.
Your Rio Grande Valley CPAs at Gonzalez and Arrambide want to ensure you feel ready when Tax Day finally comes.
Make a Decision on Filing Yourself or With a Tax Preparer
Depending on your financial situation, you will want to decide between filing your taxes on your own or with a professional. There are a few factors at play when you determine the best course of action:
- Do-It-Yourself Tax Filing – If you work a job that provides you with a W-2, don’t have any dependents, aren’t a homeowner, or your situation is overall uncomplicated, it is probably simpler and less expensive to file using a tax software.
- Get the Help of a Professional – Say you own a business and need to file personal and business tax returns or you’re married, working two to three jobs, with several dependents. It may be less of a headache to seek out a CPA for their skilled help.
Whatever your tax situation, the accountants in Weslaco at Gonzalez & Arrambide offer a FREE consultation. They can help you decide what’s best for you!
Check and Adjust Your W-4 Withholding
For people who work a straightforward W-2 career, every January your employer will request a completed W-4 form. This document will determine how much is withheld from your paycheck, based on:
- Overall Tax Situation
- Household Status
- Number of Dependents Claimed
- Other Adjustments Like Additional Deductions or Income
You can see yourself if you’re withholding too much or too little by comparing two fiscal years’ returns. If the financial situation was overall the same, a large refund could mean withholding too much. However, if you owe the IRS money, not enough money may have been withheld.
Decide if Filing an Extension Is Right for You
“What happens if unexpected problems arise this month?”
If you want to err on the side of caution, think about filing an extension, which, if approved, would give you until October 2022 to complete the tax filing process. Keep in mind that while filing the extension costs nothing, you could incur additional interest on what you owe.
Even if you’re fairly certain everything will go smoothly, an extension can never hurt as it allows for extra time to make sure everything is correct. To actually file the extension, you or your tax preparer will need to fill out IRS Form 4868.
Get the Best Tax Advice from the Rio Grande Valley CPAs at Gonzalez & Arrambide
Regardless of your financial situation, it can be helpful and reassuring to seek the support of tax professionals. That’s why the Weslaco certified public accountants at Gonzalez & Arrambide offer a FREE consultation. We want to make sure you’re both knowledgeable about and ready for tax season!
Don’t stress over questions anymore! Contact the accountants in Weslaco at Gonzalez & Arrambide for a FREE consultation now!
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!
Reach out to the knowledgeable certified public accountants at Gonzalez & Arrambide with your questions today!