FALLing Behind on Taxes? Here’s How to Catch Up

You may be focused on the upcoming holidays – but tax time is only a few months away. With the effects of COVID-19, filing in 2022 can present a new host of details and questions that you haven’t considered.

 

It can be difficult to keep up with your financial information and recording tax information as you deal with your normal day to day schedule. One advantage of today’s technology and the internet is that you can easily access this information and refer to it as the year progresses.

 

Even with this technology, falling behind on your taxes can cause a great deal of stress, but there are a variety of things you can do in order to catch up before the year ends.

 

Collect Your Information

You can review your expenses for the year to get a clear picture of what you’re missing. Review your tax filings for last year and create a list of what you need, and then work to fill in the blanks. Remember that there have been a variety of changes to the tax laws, and government subsidies, unemployment reimbursement, stimulus payments, and child tax credits could figure into your 2021 taxes.

 

Get the Right Forms

The IRS website contains virtually any form you may need when you file, but if you know which forms you need, the process can move forward much more quickly. Below are a few of the forms you may need.

 

Employed

• Forms W-2

Unemployed

• Unemployment (1099-G)

Self-Employed

• Forms 1099, Schedules K-1, income records to verify amounts not reported on 1099-MISC or new 1099-NEC
• Record of estimated tax payments made (Form 1040–ES)

Retirement Income

• Pension/IRA/annuity income (1099-R)
• Social security/RRB income (SSA-1099, RRB-1099)

 

Determine Your Deductions

Obviously deductions play an integral part of what you will get back on taxes, and what you may owe. Gathering this information throughout the year can help you stay on track. Luckily, most of these deductions exist electronically, and they make up a large part of your daily expenses. 

 

Several of the deductions you should track include:

• Home Ownership
• Charitable Donations
• Medical Expenses
• Health Insurance
• Childcare Expenses
• Educational Expenses
• K-12 Educator Expenses
• State & Local Taxes
• Retirement & Other Savings
• Federally Declared Disaster

 

Hire a Professional

Despite all of your catch up exercises, professional guidance is something to consider. Tax attorneys and CPAs have the knowledge and experience to help. Not only are they current on the latest tax rules, they can help you get organized. 

 

Don’t Press the Panic Button!

Prepping for tax season doesn’t have to be stressful if you’re organized and have a clear idea of your expenses and related financial information.

 

Taurus CPAs has the expertise, knowledge and qualified staff to help you navigate your 2021 tax return. If you have questions about our services, or need to speak with one of our experts, contact us today.