How To Prepare For 2023 Tax Season
Most of us are educated in the essence of paying taxes. But not all of us knew that it started in the 19th century to help gain funds for the civil war. As years pass by, governments around the world learn of its potential and see it as a mechanism to improve the country’s education, technology, other benefits for the citizens. The reason that enlightened us to do our part in paying taxes. In this article, we’ll teach you how to prepare for 2023 tax season to ensure safe and hassle-free transactions!
Stay Up-to-Date for Tax Season
Your first step on how to prepare for 2023 tax season is knowing the schedule of tax due dates. Since you’re aware that you’ll be taxed from the 1st day of January till the last day of December, it would be easier for you to prepare and pay if you know the schedule of submission. You can check online or look for a reliable page source that displays an up-to-date and accurate schedule. As for the schedule of tax returns, it is due on the 15th day of April 202
Wait for the Notice
The Internal Revenue Service or IRS is the agency responsible for collecting taxes, specifically income taxes and other tax law enforced. They collect taxes from individuals and different corporations. Yearly, you will be receiving a notification from them regarding the amount that you need to pay based on their tax records. Here’s what you need to do
- Wait for the notice
- Copy and save the notice
- Compare your tax records
- Analyze if the amount of payment they are demanding is correct then proceed.
- If ever you find an anomaly, reach out.
Know Your Privilege
As a taxpayer, you have the privilege of the so-called “special tax credit” that started in 2020 as a response to the pandemic which aims to reduce $300 in their monetary gifts. This means if you’re married and filed for the joint tax return, the deduction in your monetary gift would be $600. So again, one of the vital steps on how to prepare for 2023 tax season is knowing your privilege.
Ready Your Records
Delays and hassles in tax payment are caused by procrastination and lack of knowledge. As a taxpayer, the most important step on how to prepare for 2023 tax season is the eagerness to complete the documents on time. Here’s how you can do it.
- Delegate safe storage where you can put your tax records monthly.
- Arrange them by month/
- Collect your records from the start to the end of the year.
- Keep your receipts year-round
Gear Up Before the Taxes
The best way to master how to prepare for 2023 tax season is to gear up before the taxes. There are things that you need to memorize and prioritize before the taxes start. Here are some things that you need to consider:
- Any taxpayer who is listed in the tax return must know his/her social security number. So make sure to memorize yours to prevent delays and errors.
- Always check the indicated social security number in your tax return to avoid swapping or errors in figures.
- To secure your money, you also need to memorize your routing numbers and bank account. This would also be an advantage to you in directing your deposit refunds to your bank account.
- If you’re a business owner, you must prepare and accomplish the W-2 forms of your employees.
Complete the Documents Required
Aside from the memorizing stuff, it would be an advantage if you can accomplish the following documents before the taxes start. Completing these documents below would help you save time and avoid hindrances especially if you’re running a business with employees involved.
- Health Insurance Marketplace Statement or the 1095-A form
- Virtual Currency income and transactions
- Economic Impact Payment or 6475 letter
- Total Advance Child Tax Credit Payments or the 6419 letter
- 1099-MISC or 1099-K Form
- 1099-INT Form
- 1099 Forms from Banks
Technology has indeed improved our lives in many ways. However, if you’re not vigilant, you can fall into the hands of the predators in the cyber world. With the technology available, some people can fake records and pages. Here are some helpful tips on how you can avoid fraud and other complications.
- If you’re going to get your records online, make sure you’re browsing on a trusted site.
- Always check the information provided in every form.
- Do not submit documents that you didn’t thoroughly examine.
- Make sure to have a backup copy for each in case you misplace the original copy.
- Check the figures, names, and other information. If you notice an error or anomaly in any of these, hold and get it corrected as soon as possible before proceeding to the next step. This is how to prepare for 2023 tax season!
Mark Your Calendar
As you can see, if you want to know how to prepare for 2023 tax season, there are plenty of documents that you need to accomplish and collect. It could take days or even months to complete them. So better if you can use your time efficiently by marking your calendar with the target documents that you wish to accomplish. Being bombarded with work is to expect. However, you can still manage to provide the documents needed with these tips.
- Observe your routine
- See vacant hours
- Set your expected outcomes for the whole week
- Avoid loading yourself with unnecessary tasks
- Manage what you want to accomplish first by making a list of your priorities
- Be creative with your calendar to keep you inspired and on track by using different colors or incorporating images.
- Try the multitasking technique but make sure not to overdo it.
Get Help from a Tax Professional
Another efficient step on how to prepare for 2023 tax season is by getting a Tax Pro. It can be an advisor if it’s for personal use or a tax solutions agency if you’re running a business. It’s costly to commit mistakes in tax preparation. So here are the advantages of hiring a Tax Pro.
- You can save money!
Tax professionals know your privileges and can help you save money by reviewing the exceeding fees amounted in your tax.
- Helps You Save Time
Time is the most precious thing that we can spend and we all know that tax preparation would consume much of it especially if you’re solo. By hiring a Tax pro you can focus on the other areas of your life and let help you see other opportunities for your business.
- Eliminates the Risks and Stress
Tax Professionals can help you answer complex questions provided by the Internal Revenue Service. They will also handle the complexity of tax encoding and changes which will eliminate your stress. Errors that can cost you a fortune could also be avoided. They also provide the effective tax strategies that will work best for you and your business.
Tax season is perceived as one of the most stressful moments in the business. With the helpful tips on how to prepare for 2023 tax season, you can keep your hopes high! You can leave the hassle and take a stress-free route in completing the requirements!