ARE YOU PREPARED FOR YOUR 2022 TAX RETURN?
The 2023 tax season officially starts on January 25, from this day you can send
your return to the IRS (Internal Revenue Service). This year there are changes in the
standard deduction amounts. The aspects to consider when preparing for this new tax
season will depend on whether you are filing a corporate or personal tax return.
Personal Income Tax Return:
The best way to create a successful tax return is to collect your documents on time,
organize them, and file as early as possible. Some of the aspects to consider are:
Filing your return jointly or separately
Credits that may be available to you
Number of children or dependents
Using standard or itemized deduction.
Forms to collect may include:
W-2: Wages and tax statement
1099-NEC: Non-employee compensation
1099-K: Payment card and third party network transactions
1099-INT: Interest income
1099-R: Distributions from pensions, annuities, retirement
or profit sharing plans, IRAs, insurance contracts, etc.
The above forms will be sent to your mail or home address during the month
of January 2023. Keep an eye out! Ricardo Murillo, accountant and tax advisor at
WealthSpring Financial Service, explains that due to inflation, this year, the standard
deduction amounts went up to $27,700 for joint filers ($1,800 more than last year). For
single or married individuals filing separately, the standard deduction is $13,850, which
is $900 more than last year. For our clients who generate income from occasional
sales in addition to their salary, we offer tools to record and analyze their income and
costs, thus facilitating their tax preparation process.
For tax year 2022, the top tax rate remains 37% for single individual taxpayers with income over $578,125 ($693,750 for married couples filing jointly) and the minimum rate 10% for single individuals with income of $11,000 or less ($22,000 for married couples filing jointly).
Learn about expenses you can use as deductions:
Charitable donations you made during the year by check or payroll deduction.
Donations of household goods and clothing (fair value).
Donation of time and expertise.
Interest paid on personal or other student loans.
Moving expenses (for military).
Tuition and fee deductions.
Home renovation for medical purposes.
Business Tax Returns
Ricardo Murillo explains that having regularly updated accounting is the key to
facilitate the federal tax filing process. Therefore, "Being connected with our clients is
very important, that's why during the year we talk, we train our clients so they know how
to interpret their balance sheets, know the expenses they can use, and know what they
can use in their tax returns. Keeping all our clients accounts on a monthly basis allows
us not only to carry out an efficient tax planning, but also to perform the comparative
analysis that will allow our clients to make the right decisions for the future of their
company." Efficient tax planning allows business owners to take full advantage of the
deductions permitted by law, access advantageous credits and thus, at the end of the
year, avoid unpleasant surprises.
We know that for many business owners, the accounting and tax process can be
somewhat distressing, so we provide our clients with the ease and peace of mind
needed to make this process the most satisfactory experience for them.
If you would like to file your tax return, please contact us at 917-862-3085
or firstname.lastname@example.org. At WealthSpring Financial Services, we have
accounting and tax experts who will advise you on everything your company needs.