With 2022 well under way, we’re approaching the time of year that every American adult has to deal with – tax season. Regardless of your income level, preparing your taxes can often be a challenging task, especially if you have dependents or a number of deductions to consider. Many even consider the act of compiling tax documents to be more difficult than actually filing taxes. However, while the process may seem daunting, knowing what you need before you get started is half the battle, and we’re here to help.
Before you get started on your 2021 taxes, here are a few steps to help you get organized so you’re fully prepared:
- Get all of your necessary personal identification information together. When you file your taxes, you will need to know your own Social Security Number, as well as the SSNs of any dependents. This can include your spouse, your children, and anyone who you pay a taxable income (such as a childcare provider).
- Obtain the correct tax forms. Every taxpayer has a certain way they need to file, based on the way they bring in their income. You may be able to use the same tax form you had used in previous years, but if your income or job situation has changed in the last year, make sure you get your hands on the right forms. If you have any questions regarding which tax form you’ll need this year, visit the IRS website at irs.gov.
- Get all of your income information together. You will need your W2 from your job on hand before you file; or, if you are an independent contractor, you will need your 1099. Make sure you have documentation of all sources of income before you get started. This can include, but is not limited to: pensions, Social Security benefits, unemployment compensation, alimony received, earnings from real estate, investment income, scholarships and fellowships, gambling and lottery winnings, rental income, and more.