Recap: our top 10 tax tips of 2022
It’s hard to believe that 2022 is already coming to an end! We’ve covered a lot of tax tips in the past year. Here’s a quick recap of some topics you may need to discuss with your tax advisor and some tips for how best to prepare for that discussion:
- Make sure you check your mail for important tax documents that will be coming out soon, like W-2s and 1099s. Check out our checklist for an idea of what you need to keep on hand.
- Are you self-employed? Ask your tax preparer about some deductions you may be eligible for, such as home office expenses, vehicle expenses, and qualifying food and drink expenses.
- If you’re married, make sure you discuss your filing options with your spouse and your tax preparer, so that you can determine whether it’s better to file a joint return or separate ones. You’ll also need to make sure your information and withholding is up to date, if you were married recently.
- Own a vacation home, Airbnb or VRBO property? Be sure to discuss that rental income with your tax preparer to make sure you’re following the “mixed-use” property tax rules.
- Whether you won or lost, if you gambled this year, make sure to keep good records and bring your documents to your tax preparer. Gambling winnings are often taxable income, and you may receive a Form W-2G if you earned money. But if you didn’t, your losses could be tax deductible with proper documentation.
- If you’re expecting a large tax refund, it may be worth considering whether or not that’s actually a good thing. A large refund can be useful if those funds are handled responsibly. However, it may mean you’re withholding more than you should from your regular paycheck. You may want to reevaluate your withholding after tax time.
- Ask your tax preparer about your eligibility for certain education tax credits, if you or a dependent is enrolled at an eligible educational institution. Don’t forget to factor scholarships or student loans into your budget and find out what could be taxable—or deductible!
- If you have business travel coming up soon, make sure to talk to your tax advisor about how you could mix some leisure time in with your business travel and still get some tax deductions.
- Considering purchasing an electric vehicle soon? There have been some changes to the Clean Vehicle Credit, so make sure to check the rules regarding your eligibility and discuss the details of the purchase with your tax professional.
- Opting for non-cash employee gifts this holiday season is one way to help ensure the gift is considered a de minimis fringe benefit, rather than taxable income for your staff. You may also be eligible for some tax deductions on gift and party expenses, so as always, check with your tax preparer.
The best thing you can do to save money on your taxes is to start working with a tax advisor early. Be sure to work with them throughout the year on your tax planning. A good tax advisor can help you identify opportunities to save money, but you have to make sure you have time to implement their suggestions before it’s too late.
If you don’t have a tax professional yet, or yours isn’t a good fit, we can help. Padgett’s nationwide network of CPAs and EAs are ready to lend a hand. Find an office near you today!
12/29/2022
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