It might feel like you just finished taking care of your 2021 taxes, and, while that might be true, it’s never too early to start preparing for a smooth 2022 tax season. 2022 taxes will be much simpler and easier to file if you prepare in advance. Let’s take a look at some tax tips that can help you stay on top of your taxes and finances during 2022.

Tax Tips and Tricks for a Smooth 2022 Tax Season

Start a Spreadsheet and Keep it Updated

Are you a spreadsheet type of budgeter? If so, it’ll be best for you to get your sheets set up now so that you can keep up with each entry. This will save you time and stress during the week you file your 2022 taxes. If you do use spreadsheets, make sure that they are in a safe location and consider password protecting them – especially if they contain log-in credentials or links to single sign-ons for your banking accounts.

Take Pictures of All of Your Receipts

You’ve likely heard the recommendation to save every single receipt for transactions made for your business or other purposes. However, saved receipts can still get lost. You can eliminate the gravity of this threat by simply taking a picture of all of your receipts on your phone. These pictures can be moved to a folder on your laptop or desktop computer for safekeeping, or you can just leave them on your phone.

Save All Receipts and Letters From the 2022 Tax Season

As mentioned above, you should always save paper and email receipts so that you have a record of all purchases and purchase agreements. One thing many people fail to save, however, is documentation that is received in the mail from sources like the IRS. For example, the letters issued by the IRS about the CTC Advance were incredibly important for filing 2021 taxes. If you see a letter from the IRS, it’s best practice to file it away somewhere safe.

Set Aside Your Papers for 2021 Taxes

The 2021 tax season may be over, but your tax return papers are still important. Always keep at least three years of personal tax return documents before throwing them away or disposing of them in other ways. No matter how meticulous you are about filing your 2022 taxes, mistakes are always possible and random audits do happen.

Start Thinking About Charitable/Health Donations Now

One of the smartest things you can do now to help reduce your tax burden at the end of 2022 is to contribute to health savings plans and charitable organizations. There is a yearly maximum for tax deductions, and few people will be able to shell out that amount directly before they file for the 2022 tax season. 

HSA accounts generally can help you deduct between $3000-7000 of your annual income from your taxes. Additionally, charitable donations (tithe, cash gifts to organizations, charitable trusts) can equal up to 60% of your income.

Looking For More Tax Tips?

Here at NTRC Tax & Finance, we’re always on the lookout for ways you can make your taxes easier to manage. Our professional tax experts are available for questions regarding your personal taxes or small business taxes. If you have a question, don’t hesitate to reach out to us today.

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