OQBC Get Ready to File Your Taxes 2022

By Maria E. Ochoa Accountant, Business Consultant, Quick Books Pro Advisor

Create a tax account online with the IRS

By creating your account online with the IRS, you will be able to access your tax information, payment history, tax returns submitted, obtain transcripts, request payment agreement, approval to tax professionals, IRS’ notices.

Get your IP PIN

The IP PIN, Identity Protection Number, is a six (6) digit number that prevents anyone from filing a tax return using their Social Security number, it is valid for one year, it is a proactive measure to protect yourself from tax-related identity theft.

Gather your tax documents

It is important that you organize the necessary documents that you will include in your taxes, here are some: • Social security numbers of taxpayers and dependents. • Account numbers and bank routing for direct deposit. • Forms of all types of income received, such as wages, unemployment compensation, social security, dividends, retirement distributions, interest received, capital investments, redemptions of virtual currency, business profits and property income. • Forms 1095-A, from the health insurance market. • Letter 6419, of the child tax credit advances. • Letter 6475, of the 2021 Economic Impact Payments. • Deduct the estimated payments you make to the IRS during 2021.

Life events can affect your taxes

These events will affect your taxes, credits, and possible deductions: Getting married, divorced, widowed, having a baby, adoptions, children in college, providing support to a new qualified dependent, being disabled, being enlisted in the military, begin retirement, unemployment, death,

Understand how your deductions and credits work

Credits can reduce the amount of tax you owe. Deductions can reduce taxable income, and there are requirements and limitations to qualify for them.

Plan for your retirement

In addition to your social security contributions, opening an additional retirement plan like a Traditional IRA, and contributing as much as you can each year will have a positive impact on your retirement.

Pay your taxes and choose to submit them electronically

The deadline to file and pay your 2021 taxes is April 18, 2022. Avoid penalties and interest by paying on time, otherwise request a payment plan as soon as possible. Don’t wait for your income to be garnished or bank accounts to be frozen and DO NOT ignore letters from the IRS. Electronic submission is faster, easier, and more accurate, you will receive confirmation that it was accepted, and your refund can be received faster.

Filing and paying your taxes are a civic duty

Paying taxes is a civic duty and is required by law. If you don’t pay your taxes, the IRS will require you to pay or face paying penalties, fines, interest, and being in collections. Tax money is distributed for the salaries of government workers, police, firefighters, infrastructure of roads and bridges, libraries, schools and public parks and aid programs for the less fortunate.