Things to Watch Out for Before Tax Season BeginsEGTax2022-01-14T19:38:29+00:00
Advanced Child Tax Credit payments – You must know what you received before filing
Any unemployment payments – You must go to the NYS unemployment website to get your 1099-G form or call the number listed for a mailed copy of the form
Have you received all of your stimulus payments? Did you have a child in 2021? You have a second opportunity to receive these payments under reconciliation!
Did you take your RMD if you are 72 years of age or older?
Do you have bad debt? Finalize before 12/31 if you can take the deduction into 2022. Must be legally done.
If you are a small business owner with employees, did you take advantage of the employee retention credit?
Pay up all of your bills before year end if you want the deduction in 2022
Put final amounts of money into 401K plan!
Pay your daycare bills up front because of the huge tax credit
Get your daycare provider’s SSN
Get a part-time job for the EIC if you are a senior
Get a part-time job if you have dependent children and you have a lower income amount
Take your distribution from your trust so the income isn’t left in the trust
They may open up the SALT deduction in 2022, be prepared for if they do
Sell losing stocks
Don’t forget about the bed tax refund if you are a private pay patient
Make sure you have all the correct information before you file, or you may hold up your refund
Make sure you have all of the correct banking information before you file including routing number
Make sure you have the correct refund from last year. Correct them now if you haven’t
Don’t take money out of your 401K… Look at other ways to finance gifts… Credit cards, borrow against the 401K, give homemade gifts, or sell unused assets
You can withdraw up to $5000 penalty free if you just adopted or had a child in 2021
Come to EG Tax! Our staff are extremely experienced and will be able to help you with your specific situation to ensure you save the most money possible this tax season!
