Super Bowl Tax Season Top 5

In honor of the upcoming BIG GAME, as your friendly neighborhood Tax Man, I thought I would share my SUPER TOP 5 TAX TIPS as we move into the full swing of the tax season.

TOP 5 TAX TIPS

1. Consider filing early, even with additional IRS employees working to help taxpayers deal with changing and potentially confusing filing requirements, this year's filing season could still be a tough one. If your return is flagged for review, your refund will almost certainly be delayed.

a. What can you do to speed things along? If your tax return is simple (filed with a single W-2 and the standard deductions), get it done early and e-file. Avoid potential mail delays by setting up direct deposit with the IRS.

b. If your tax return is more complex, start gathering your information and engage help ASAP. The sooner you start the process, the more time you'll have to track down missing information, smooth out discrepancies or find a qualified tax professional.

These steps can result in getting your refund faster or finding out if owe faster thus having more time to prepare for or plan to pay your tax liability.

2. Make sure to answer the question regarding Digital Assets- “ At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset(or a financial interest in a digital asset)?” The change to this question from 2021 is twofold. One, the IRS now requires all taxpayers to answer this question. Two, the wording of the question was changed from virtual currency to digital assets. The change is intended to broaden and clarify the types of assets to be included within the scope of the question.

3. If you purchased a new, qualified plug-in electric vehicle (EV) in 2022 or before or made energy efficient improvements to you home, you may be eligible for a tax credit. And if you did not you may want to consider it for 2023 as under the credit enhancements the credits have been changed and now include some purchases of used electric vehicles.

4. I know the number one tax tip is to file early and we do recommend that. But if for some reason you wait, the good news we have three extra days to file with the deadline being April 18th this year. In CA and certain areas of GA and AL you have even more time with the deadline being extended to May 15th due to these areas being seriously affected by the natural disaster storms.

5. The final tip is not necessarily for this tax season but for the next. Start your tax planning early by checking your withholding now. This way you can make sure you are having the proper withholding occurring for all of 2023.

IT’S SUPERBOWL TAX TIME! LET’S GO!!!

No matter what team you are rooting for it is important to remember a milestone like the SUPERBOWL is only reached through teamwork. And having a good tax preparer/advisor on your financial team is very important to reaching your financial goals.