It’s January which means people are gearing up for tax season. Whether you are filing an individual tax return or a return for your business, there’s no doubt it’s a complicated process. For this reason, many people look for ways each year to make taxes easier.
Below are a handful of recommendations to consider if you’re beginning to ask questions about your taxes.
First, When Are 2022 Taxes Due?
Tax Day 2022 is currently planned for 4/18/2022. However, similar to what happened in 2021, it’s likely the IRS will extend this deadline. The IRS has stated it is far behind, so we’ll likely see taxes extended by at least a month to 5/18/2022.
Use Software for Your Taxes
Many companies have introduced software you can use to file taxes with the IRS. In the olden days, people would have to file tax forms and income statements without the help of the internet. You can probably imagine the process took a while. Now, individuals and businesses can use different types of accounting and tax preparation software to make the process seamless.
TurboTax, etc.
TurboTax is by far one of the most popular software packages available. It allows its user to easily upload documents and file taxes at the state level and federal levels. Although TurboTax is the most popular name when it comes to taxes, there are several other options available that all allow you to file your taxes.
For Businesses
Business owners also have to file taxes and may do so through a system like TurboTax too. Most businesses have accounting systems in place like TurboTax’s sister product, QuickBooks, that make the entire process easy. You should find options within your accounting software to easily transfer the data into a tax system. And if you operate a business that has to comply with lease accounting standards, you can still move data from your accounting system into a tax platform.
Work with a Tax Prep Firm
If you’re not comfortable filing taxes on your own or if your business doesn’t already work with a tax preparer, you can always find qualified help for hire. Accounting firms are prepared to handle the filing of tax documents, mitigating any issues and advising on how you can save on your income taxes.
Locating a tax preparation business is pretty easy if you live in a heavily populated area. You will likely see H&R Block offices scattered throughout your city. Firms like H&R Block will definitely get the job done, but you will be expected to pay a premium for their services. If you step outside of a national tax preparation business, you can find a local tax preparer who is just as qualified and less expensive. Do a quick Google search for something like “tax preparation near me” to see a list of accountants and tax professionals in your area.
Start Preparing Now
Whether you choose to use tax software or hire a professional to help you, it’s best to start preparing sooner than later. Look at your financials over the last year to determine if you’ll owe anything in taxes or if you can expect a return.