Time to get ready for Tax Season 2022. A quick resource to gather your financial information to get your taxes done.

Each year, January marks the beginning of the new tax season for CPAs and tax preparers. You should be receiving your W-2’s, 1099’s, and mortgage statements (1098’s) by the end of the month. Lynn Spencer here with Killingsworth Spencer CPAs.

Below is a checklist to use as a guideline:

  • Verify that your W-2s and your 1099’s are correct. If not, you need to contact the appropriate entities immediately to get corrected statements. Gather your mortgage account statements. Add IRS Letters 6419 (Advanced Child Tax Credit) and 6475 (Economic Impact Payments) to your list of tax documents for 2021. Have you captured all charitable donations? You will need verification for any gift that exceeds $250. If you made a gift to a qualifying charity that exceeds $5,000, you will need to have a written appraisal
  • You have until January 18th, 2022, to pay in any additional federal and state income taxes to “safe harbor” for 2021 (this protects you from underpayment penalties when conditions are met). The safe harbor amount is 110% of the federal taxes paid in the 2020 calendar year if your 2020 AGI was at least $150,000 for married filing joint. If your AGI was less than $150,000, (MFJ) the total taxes paid for 2021 should equal the 2020 liability, or at least 90% of the 2021 tax liability. Otherwise, there could be underestimated tax penalties assessed for the 2021 tax return
    • To safe harbor for the state of GA, you simply need to have paid in the amount of taxes due for 2020
  • Did you sell investable assets in 2021? Don’t forget to keep your year-end statements for 2020 and 2021. Keep any information related to tax basis – you will need to provide this information to your CPA
  • Did you experience a major financial change in 2021, such as an inheritance, a divorce, significant change in income, or a death in the family? If so, be sure to mention this to your CPA, and keep all necessary documentation
  • Did you make any gifts of cash or property to a family member that exceeded $15,000 in 2021? If so, you may also need to file a gift tax return in 2022
  • If you own a business, go back through your credit card and bank statements to make certain you have flagged and segregated all your business income and expenses for 2021

If you have additional questions or concerns about the preparation of your tax returns, please feel free to reach out to us at 770-552-8286.