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Year-End Tax Preparation

It’s the holiday season, which means year-end is fast approaching. In between holiday gift shopping and decorating, spend some time prepping your taxes for the end of the year. Whether you are an individual or a small business owner, you can take proactive steps for tax season.

  1. Create a checklist: Make a list of all documents you need to file your taxes. Reference last year’s tax return and note when and how you will receive these forms.
  2. Be sure your personal information is up to date: Did you have a name or address change over the past year? Make sure to update the IRS with any new information.
  3. Keep your receipts handy: Organize your paper or digital copies to help track your expenses. Keeping these documents organized year-round can help your tax provider easily reference information, but a year-end clean-up is always beneficial.

As always, we are here to help with any tax services all year round. We are gearing up for an exciting and busy 2022 and we can’t wait to get started.

Before Building Back Better…

Biden’s Build Back Better bill has passed the house and there’s no way we can predict if and when it will pass the Senate. Just in case, there are some things you can do before December 31, 2021 to save some tax dollars.

  1. If possible, accelerate any of your 2022 income into 2021 to avoid the increased tax rates for higher-income earner Individuals (over $400,000).
  2. If you intend on making a charitable contribution, do it now. For 2021 you can receive a $300

($600 joint) charitable contribution credit, even if you don’t itemize.  If you do itemize, and you are philanthropic it is feasible to wipe out 100% of your taxable income for 2021.

  1. If you have or expect medical bills, pay them in 2021 since the 7.5% threshold has been temporarily reinstated from 10%.
  2. If you are self-employed, you can deduct 100% of meals and entertainment for employees in 2021, up from the prior 50% limit. Pay for that holiday party in the current year!!!
  3. If you qualify to deduct educational expenses, the lifetime learning credit has been expanded to $2,000 which comes right off the tax owed. Make sure you review the income limits.

As more changes take place we will keep you updated. Contact us today if you have any questions!