It’s that time of year again—tax time. Whether you’re doing it yourself or hiring a tax planning professional, like Todd Greene, tax prep can help make the process smoother. Here are five tax season preparation tips to help you get through this season with ease.
2023 tax season filing dates
First, it is important to know all the key filing season dates. Here are the 2023 dates to keep in mind this tax season.
- January 13: IRS Free File opens.
- January 17: Due date for tax year 2022 fourth quarter estimated tax payment.
- January 23: IRS begins the 2023 tax season and starts accepting and processing 2022 tax returns.
- January 27: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people-including the option to use prior-year income to qualify.
- April 18: National due date to file a 2022 tax return, request an extension and pay tax owed.
- October 16: Due date to file for those who requested an extension on their 2022 tax returns.
Organize your tax paperwork
Currently, we are at the beginning of tax season. Businesses quickly began receiving and distributing essential tax documents during this time.
Making sure you have all your paperwork gathered and organized before filing will help you avoid surprises or delays later. A tax planning professional can help you categorize your documents and make sure everything is in place.
Understand the deductions and credits you qualify for
Tax deductions and credits are a vital part of the filing process. Deductions can reduce the amount of your income before you calculate the tax you owe, while credits can reduce the amount of tax you owe or increase your tax refund.
Get a better understanding of tax deductions versus tax credits by reading our blog about it.
For businesses, there are several business tax credits and deductions available. Be sure to check or ask your tax preparer before filing, and check out our blog, 4 Often-Missed Business Deductions at Tax Time.
Itemize business expenses
Another one of our tax season preparation tips includes itemizing your business expenses. Having your expenses itemized and categorized before tax day can save you time.
When working with an accounting team, they can help you claim the maximum benefit from your expenses. Check out the business expenses explainer from the IRS to learn more about what expenses can be claimed.
Know your state’s tax issues
Knowing your state’s tax issues is a key part of filing taxes for your business. Some states take out loans from the federal government to meet their unemployment benefit liabilities. If your state has taken out loans but not repaid them, there will be a reduction in the credit against the Federal Unemployment Tax Act rate.
This means that employers in those states have to pay more. There are a number of states affected by this, including North Carolina.
Having a tax planning professional helps during this time. They will prepare your state return as well as your federal return.
Searching for a professional to help with your business tax prep? Contact Todd Greene! Please take note of our tax season preparation tips. These helpful reminders are sure to help make filing day a breeze.
Finally, continue reading our blogs to stay informed and up-to-date on more financial news.