The Countdown to Tax Season
As we come up on the end of the year, it's a good time to start prepping for tax season. Getting ahead will save you a lot of time and stress in the future.
The Dates You Should Remember When Preparing For Tax Season
We’re approaching the end of the year and that means it’s a good time to start thinking about taxes. Tax season might not be right around the corner yet, but it’ll come sooner than you think. Getting started now is a good way to make sure you don’t have a huge, panicked rush when it comes time to file your taxes. Stapley Accounting, an accounting company in northern Utah says that there are three particular dates to keep in mind for your taxes.
The Important Dates Of Tax Season
1. January 31st
January 31st is an important date for payroll. You are required to provide your employees with their W-2s by this date. If there are any independent contractors who you paid more than $600 to over the course of the year, you must file your 1099 by this date as well. Don’t forget to provide the 1099 to the contractors by the end of the next month, as well.
2. April 15th
April 15th is referred to as “Tax Day.” This is the day when you must have your taxes filed and paid to the IRS. This date is sometimes changed, temporarily, for various reasons. In 2022, it was changed because of a federal holiday, while in 2021, it was changed to help ease the difficulties created by the Covid-19 pandemic. However, unless congress or the IRS specifically make exceptions, this is the deadline. If you wish to file for an extension, this is also the date you will need to do so by if you wish to avoid additional fees.
3. October 15th
If you’ve filed for a tax extension, this is the final deadline to have everything done. If you miss this date, you will face fees and fines, no matter the excuse. If you haven’t gotten everything done before this date, be sure you don’t miss this one.
Avoid Extensions Whenever Possible
Things can come up that you just can’t plan for that require you to change how you file. You may not even be able to get all the information you need in time for whatever reason. When this happens, tax extensions can be a life saver, but don’t make a habit of relying on them. It’s all too easy to use tax extensions to just kick the can down the road, leaving you to deal with bigger problems when it all finally comes inescapably due in October. The best way to handle your taxes is to get it done by April 15th whenever possible.
Get It Started Early
One of the biggest mistakes you can make is waiting until the last minute. If you put off dealing with your taxes, you may find that you suddenly have to rush. Rushing is when you make mistakes.
To avoid this, it’s best to start early. Right now, as we move into the final quarter of 2022, you should have everything you need to start. Getting an early start now means you can have all but the last quarter prepped and organized for filing. While you can’t file this yet, it does give you a good idea of what the year looked like overall. This is not only good for end of year planning, but it’s less work you have to do once the year ends. Once you hit January, you only have one last quarter to account for. Just imagine what a difference having your taxes done in January will make! No more worries as you get closer to that April 15th deadline. No problems with filing extensions. It’s all wrapped up and ready to go as soon as the IRS is open to take it. Don’t spend the new year worrying about the old; get your taxes done early and take a load off your mind.