Tax season is officially among us. With the right steps and proactive planning, you can take control of your taxes and ensure that everything is filed correctly and on time. The 2022 tax filing is currently set to complete with the normal deadlines, so be sure to get your taxes in order before the filing deadlines, April 18th for federal returns and Massachusetts returns.

How will you file your 2022 taxes?

Will you be preparing your return yourself, or will you hire someone to file on your behalf? Have a plan in place now, so you know what required information you need to have at hand, and what you expect to pay for completion of all needed forms. If you will be using a new tax preparer for 2022, they will ask for a copy of your prior year return in addition to all relevant documents for your 2022 tax filing.

The IRS also offers a Free File program if your income is below $73,000. Go to IRS.gov or see the IRS2Go app to see your options. You may also qualify for local tax assistance through programs like Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE).

How to assist your tax preparer in preparing your return

Make this tax season smooth by getting your paperwork organized early. The sooner you file, the sooner you can put 2022 in the past and focus on a great outlook for 2023.

Records are key, and documentation is paramount, things to think about when getting ready. Make a note of changes to your life – Births, marriage, age milestones (dependents, seniors); amd changes to your financial situation, large raise, retirement, etc.



Below is a list the most common required forms and items to gather, as well as a few other things for you to consider as you prepare for filing your 2022 tax return. Please note that this list is not exhaustive because everyone's tax situation is different.

Documentation of Income:

• W-2 - Wages, Salaries and Tips
• W-2G – Gambling Winnings
• 1099-Int & 1099-OID – Interest income statements
• 1099-DIV – Dividend income statements
• 1099-B – Capital Gains – sales of stock, land, and other items
• 1099-G – Certain Government Payments
• Statement of State Tax Refunds
• Unemployment Benefits
• 1099-Misc – Miscellaneous Income 
• 1099-NEC – Independent contractor income
• 1099-S – Sale of Real Estate (home)
• 1099-R – Retirement Income
• 1099-SSA – Social Security income
• K-1 – Income from Partnerships(1065), Trusts (1041) and S-Corporations (1120S)
  

Itemized Deductions:

• Medical expenses - out of pocket (limited to 7.5% of Adjusted Gross Income)
• Medical insurance (paid with post-tax dollars)
• Long term care insurance
• Prescription medicine and drugs
• Hospital expenses
• Long-term care expenses (in-home nurse, nursing home etc.)
• Doctors and dentist payments
• Eyeglasses and contacts
• Miles traveled for medical purposes
• State and Local taxes you paid (Limited to $10,000)
• State withholding from your W-2
• Real estate taxes paid
• Estimated state tax payments and amount paid with prior year return
• Personal property (excise)
• Interest you Paid
• 1098-Misc – Mortgage Interest Statement
• Interest paid to private party for home purchase
• Qualified investment interest
• Points paid on purchase of principal residence
• Points paid to refinance (amortized over life of loan)
• Mortgage insurance premiums
• Gifts to Charity 
• Cash and check receipts from qualified organization
• Non-cash items need a summary list and responsible gift calculation (IRS tables). If the gift is valued more than $5,000 a written appraisal is required.
• Donation and acknowledgement letters (over $250)
• Gifts of stocks – you need the market value on the date of gift
  

Additional Adjustments:

• 1098-T – Tuition Statement
• Educator expenses (Up to $300)
• 1098-E - Student Loan Interest Deduction
• 5498 HSA – Health Savings Account contributions
• 1099-SA - Distributions from HSA
• Qualified Child and Dependent Care Expenses
• Verify any estimated tax payments (does not include taxes withheld)

Sole proprietors (Schedule C) or owners of rental real estate (Schedule E, Part I) need to compile all income and expenses for the year. You need to retain adequate documentation to substantiate the amounts that are reported.

The Interactive Tax Assistant (ITA) is an IRS online tool (IRS.gov) to help you get answers to several tax law items. ITA can help you determine what income is taxable, which deductions are allowed, filing status, who can be claimed as a dependent, and available tax credits. You can also visit https://www.mbkcpa.com/2022-tax-filing to find more resources for assistance with your 2022 tax filing including blogs on the latest changes and links to useful IRS and state resources.

Be especially careful during this time of year to protect yourself against those trying to defraud or scam you. The IRS will NEVER call you directly unless you are already in litigation with them. They will not initiate contact by email, text, or social media. The IRS will contact you by US mail. However, you still need to be wary of items received by mail. Anything requesting your social security number, or any credit card information is a dead giveaway for scam identification. Watch out for websites and social media attempts that request money or personal information. You can check the IRS.gov website to research any notice you receive or any concerns you may have. You can also contact your tax practitioner for assistance.

How do you know if someone has filed a return with your information? The most common way is your tax return will get rejected for e-file. These scammers file early. You may also get a letter from the IRS requesting you verify certain information. If this does happen, there are steps to take to get this rectified:

1. Contact IRS Identity Protection Specialized Unit (800-908-4490)
2. File Form 14039 Identity Theft Affidavit
3. Paper file your return

In addition, we recommend you take further steps with agencies outside the IRS:

• Report incidents of identity theft to the Federal Trade Commission at www.consumer.ftc.gov or the FTC Identity Theft hotline at 877-438-4338 or TTY 866-653-4261.
• File a report with the local police.
• Contact the fraud departments of the three major credit bureaus:
• Equifax – www.equifax.com, 800-525-6285
• Experian – www.experian.com, 888-397-3742
• TransUnion – www.transunion.com, 800-680-7289
• Close any accounts that have been tampered with or opened fraudulently.
  

If you are a confirmed identity theft victim, the IRS will mail you a notice with your IP PIN each year. You need this number to electronically file your tax return.

You may also opt into the IP PIN program. Use this link https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin to set up your IP PIN. An IP PIN helps prevent someone else from filing a fraudulent tax return using your social security number.

Make this tax season smooth by getting your paperwork organized early and letting your tax preparer know about any changes to your life or financial situation. The sooner you file, the sooner you can put 2021 in the past and focus on a great outlook for 2022.