As we are coming to the close of another year, we need to make sure we have cleaned up/caught up and made solid tax saving plans for the tax year 2022, especially if you are new to business or have fallen behind.
This is to be used as a guide to review all the important areas that will ensure a smooth process for the upcoming Tax Season.
If in doubt, be sure to make an appointment with us.
Records and Compliance:
- All books and records are up to date. Make sure you have all paperwork pertaining to events which can include lines of credit, mortgages, real estate purchase, real estate sale, securities buy and sell and lease agreements
- Independent Contractors, Self-employed, Gig workers-ensure that the W-9 you gave to your client is accurate: Correct address, correct company name, correct EIN (Employers Identification Number). If in doubt, send your client an updated W-9 for 2022 (It is very important to have accurate EIN)
- Companies that employ the independent contractors – before your next payment require to “Verify the W-9”
- Make sure there are separate bank accounts, credit cards and other financial instruments to make a clear demarcation between business vs personal
- S-Corp status if requested
Do you want to give a bonus before the year ends?
- Review tax deductions and exemptions. Submit an updated W-4 if needed.
- Review your pre & post tax deductions.
- Catch up on 401K/403b contributions. Review for Conversions if it makes sense.
- Max out on IRA’s Roth and Traditional. Review for Conversions if it makes sense.
- HSA or FLEX Spending
- Medical receipts from the Dr, Pharmacy and Others
Buy and Sell
- Review your security portfolio- sell winners and losers together to net out nontaxable. (Short term/Long Term Capital Gains)
- Sold your residence? Exclusion, Basis, Selling Price, and Selling Costs
- Need new equipment? Section 179? Depreciation?
- Leasehold improvements?
- Impaired Assets? Loss due to Natural disaster?
- Estimated Tax payments up to date
- Ensure that 90% of the tax liability is paid for 2021 for 2022
- Review all taxable income.
These are some, if not all, of the major items that you should be reviewing before the year ends. We have 45 days to take action. Review NOW!
Should you need help – we are here, your 1099 Accountants.
REMINDER: Please make appointment via https://calendly.com/rick-121. If you have questions or concerns., If you have basic bookkeeping concerns with your business account – email Maya or Dinee directly.
In the next 4 weeks we will be discussing the different 1099’s for the upcoming tax year.