It’s hard to believe but 2022 is already more than halfway over. Before too long, temperatures will begin to cool as fall arrives and then the holiday season takes over. As the calendar flips, tax season will almost immediately be in full swing as individuals begin getting their affairs in order for another return filing. However, before it sneaks up on you, there are plenty of steps people can take in order to get a head start on their return for next year.
Processing over 260 million Federal tax returns last year, the Internal Revenue Service works to resolve each in a timely manner. By getting ahead of the game, individuals can also be prepared when the time comes to begin filing and may even be able to make mid-year adjustments which could help either increase a refund or reduce any amount owed. While each individual's scenario is different, there are a few mid-year tips for all to consider.
Depending on your prior year results, if there has been no change to your income, then a review of your withholdings may not be necessary. However, if you weren’t having enough tax withheld and ended up owing tax, making a change mid-year can assist in this area. In addition, if you’ve received a pay increase or cut, the new taxable amount could warrant making an adjustment in order to ensure there are no surprises when it comes time to file.
Required Minimum Distribution Check
Depending on your age and when you were born, certain retirement plans may require you to begin taking distributions during the year. If so, ensuring the amounts are correct - since they change annually - is important, in addition to making any necessary adjustments. While these distributions are required, taking a look at any voluntary withdrawals midyear can also assist in planning for the next tax season.
Check Your Status
Marriage, divorce, death, and certain other life events can all have an impact on your filing status from one year to the next. If the first half of this year has resulted in any of the above, then your next tax return may be filed under a different status than the last. Understanding how this could have an impact on your return and other factors throughout the remainder of the year is important and helpful information to review before tax time.
Review Current Tax Return
If an extension was filed back in the spring, then reviewing your return preparation and ensuring everything is in line prior to the October deadline is extremely important. In the event your return was filed, then reviewing it for any potential changes that have taken place in the given year can be a wise move in order to prepare for filing the next return.
If you need any assistance to review a current tax situation, are in need of filing a personal or business tax return, or have any other tax related questions then let the professionals at Bloch Rothman and Associates
assist you today. In addition to providing answers for your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!