How to Take The Stress Out Of Tax Season 2023
Know the Deadlines
The following are tax filing deadlines to note:
Personal Tax Return: April 18th, 2023
S-Corporation or Partnership Tax Return: March 15th, 2023
C-Corporation Tax Return: April 18th, 2023
Non-Profit Information Return: May 15th, 2023
You can extend these deadlines by 6 months if you file for an extension, but this is only an extension to file, not to pay. You may have extra penalties added to your return if you happen to owe a lot to the government AND you haven’t been diligent in paying your quarterly estimated taxes.
Know your Tax Preparer’s Deadline
If you have your taxes prepared by a professional and have a very simple tax return your turnaround time is most likely quick, however, I’d recommend taking note of the deadline your tax preparers have given for their clients returns to be prepared on time.
At Shoff Accounting, we recommend our clients upload all documents (and complete other tasks) by March 18th, which is about 1 month before the deadline.
If you wait until the day before the deadline (April 17th, 2023), most likely your tax preparer will file an extension for you as they’ll be working through a backlog of returns. Go ahead and take care of business now so you won’t be waiting too long to have your return prepared.
Make Retirement Contributions Before Their Deadlines
It’s super important for everyone to save for retirement. Start today if you haven’t already. The government encourages this through retirement account tax incentives/deductions. Don’t miss out!
You have until April 18th, 2023 to contribute to a Traditional IRA. Making this contribution before the deadline will still get you the tax deduction for the 2022 tax year, just make sure your brokerage or your financial advisor categorizes this contribution in the proper tax year in their system (2022).
For ROTH IRAs the deadline to make this contribution for the 2022 tax year has already passed (it was December 31st 2022) but you can still make contributions to this account for the 2023 tax year. ROTH IRAs are one of the best retirement accounts out there. I encourage you to research this and take steps to start this type of retirement account if you have yet to do this.
If you’re self-employed you may qualify for a SEP IRA. This works like a traditional IRA, but the contribution limit is much higher (capped at the lower of $66,000 or 25% of business profit), which can give you big tax deductions this year.
Organize Your Tax Documents
Keeping your tax documents organized can be a challenge. I recommend grabbing a brand new manila folder (or large envelope) and place all tax documents in this designated folder as they arrive in the mail. Place this designated folder in a safe place where it will not get wet, lost, or damaged.
Common things to gather for tax preparation:
W-2s
1099s
Brokerage Statements
Home Mortgage Interest Statements
Medical Expenses
Financial Statements (if you own a business)
For a more detailed list see the links below:
Finalize Your Bookkeeping
Own a business? If so, those financial statements are crucial when it comes to preparing your tax return. They must be accurate or your return could be subject to high penalties. Be sure to get in touch with your bookkeeper and come up with a plan on getting your bookkeeping finalized ASAP.
We can help get your bookkeeping caught up if needed. The first step in serving you is scheduling a quick call and let's chat about your bookkeeping or tax preparation needs. Click the link below to schedule a call with Jonathan, the Founder of Shoff Accounting:
https://calendly.com/shoffaccounting/discoverycall
Perform Strategic Tax Planning to Legally Reduce Your Tax Liability
Own a business? If so, there are huge benefits to engaging a tax planning service. There are various parts of the tax code that allow business owners to legally increase their deductions and possibly gain certain tax credits in certain situations under certain circumstances.
Want to see how much you could save with tax planning services? We can help you in this area, this is our specialty. The first step in serving you is scheduling a quick call and let's chat about your tax planning needs.
Click the link below to schedule a call with Jonathan, the Founder of Shoff Accounting:
https://calendly.com/shoffaccounting/discoverycall
Get A Professional Tax Preparer for Saving Time and Increase Tax Return Accuracy
Want a new tax prepare or would you like to have your taxes prepared by a professional for the first time? If so, we can help you in this area. We are a digital firm that serves clients in many states.We’d love to prepare your tax return this season. The first step in serving you is scheduling a quick call and let's chat about your tax planning needs. Click the link below to schedule a call with Jonathan, the Founder of Shoff Accounting: