Embark on Tax Season with a Checklist to Save Time, Reduce Errors

The April 15, 2023, deadline for filing 2022 taxes or extensions fast approaches. Rather than commencing the filing of your taxes haphazardly, searching for statements and information on an as-needed basis, Solyco Wealth highly recommends that you spend some front-end time devising or downloading a Tax Preparation Checklist. Doing so likely will not only save time, but also reduce the probability of you or your preparer committing errors.

Time-saving information and details to have prior to starting your tax preparations might include:

  • Social Security numbers for your spouse and dependents
  • Copies of 2021 tax returns and supporting documentation
  • Bank account information, including routing and account numbers (for payments OR refunds)

In addition to the usual income information that comes with your W-2, it likely will save time to also gather forms for other income like:

  • 1099-INTs with interest income
  • State and local tax refunds from 2021 (maybe from last year’s return that you already pulled from your files)
  • Rental, partnership, or farm income
  • Taxable Health Savings Account distributions

Deductions and credits information that might slip your mind while in the midst of preparing your taxes but that could still save a buck or two could come from:

  • Mortgage interest
  • Property taxes
  • Child or dependent care costs
  • Education costs
  • Expenses related to:
    • Side businesses
    • Home office expansion
    • Energy efficient home improvements
  • Charitable donations
  • Estimated tax payments made earlier in 2022

Tax preparation frequently represents one of the more aggravating and frustrating exercises of the year. We highly recommend starting the process early and segmenting it into phases like:

  1. Gathering and accumulating information and data
  2. Preparing forms
  3. Reviewing the forms for accuracy and completeness
  4. Filing the forms with required payment or refund information

In our experience approaching tax season in this manner vastly reduces its annoyance and increases accuracy.