Your Tax Season Preparation Checklist
As you know, we are in the middle of tax season for filing returns for the 2022 tax year. There are a number of deadlines and other issues that taxpayers need to keep in mind.
Key dates
There are a number of dates that you need to be aware, including:
- The first date the IRS would begin accepting tax returns was January 23.
- The tax filing date by which you either need to file your 2022 return or submit Form 4868 to file an extension is April 18.
- For those who have requested an extension, you must file the extension no later than October 16.
There are some additional deadlines in 2023 to be aware of as well, including making quarterly installment payments for the 2023 tax year. You will want to consult with your tax professional to ensure that you don’t miss these deadlines or underpay. Both issues can trigger tax penalties.
What documents will you need to file your taxes?
Before filing your taxes, whether you do your own taxes or use the services of a tax professional, you will want to gather all relevant documents regarding your income and any expenses that you may be able to deduct. Forms related to income might include:
- Any W-2 forms for income earned from an employer.
- If you are self-employed, any 1099 forms for income received from clients of your business.
- Taxable alimony received.
- Forms detailing any investment income including various 1099s, K-1s, information regarding stock options and others.
- IRA distributions, taxable pensions received or taxable workplace retirement plan distributions.
- Rental income and other income related to investment properties or the sale of any business assets.
- Social Security income.
In short you will want to have documentation for any type of income received to ensure that you don’t under report your taxable income.
You will also want to have documentation for expenses and taxes paid, including:
- A mortgage interest statement.
- Documentation for any property taxes paid.
- A list of any business expenses.
- Documentation for all charitable contributions.
- Documentation for all medical expenses if you are able to deduct an amount over 7.5% of your adjusted gross income.
Any types of expenses that you may be able to deduct on your return need to be documented in case the IRS questions your return.
Additionally, you will want to be able to document any contributions to 401(k)s or other workplace retirement plans, as well as to IRAs.
Tax Bracket and Tax Deduction Changes for 2022
The personal tax brackets generally change each year to allow for inflation. Here are the brackets and income levels for the 2022 tax year.
| Marginal tax rates | Single filers | Married filing jointly | Head of household | Married filing separate |
| 10% | $10,750 or less | $20,550 or less | $14,650 or less | $10,750 or less |
| 12% | $10,751 – $41,775 | $20,551 – $83,550 | $14,651 – $55,900 | $10,751 – $41,775 |
| 22% | $41.776 – $89,075 | $83,551 – $178,150 | $55,901 – $89,050 | $41.776 – $89,075 |
| 24% | $89,076 – $170,050 | $178,515 – $340,100 | $89,051 – $170,050 | $89,076 – $170,050 |
| 32% | $170,051 – $215,950 | $340,101 – $439,900 | $170,051 – $215,950 | $170,051 – $215,950 |
| 35% | $215,951 – $539,900 | $439,901 – $647,850 | $215,951 – $539,900 | $215,951 – $323,925 |
| 37% | Over $539,900 | Over $647,850 | Over $539,900 | Over $323,925 |
For those taxpayers who cannot itemize deductions, they can use the standard deduction to reduce their taxable income. The standard deduction generally is increased for inflation each tax year. For 2022, the standard deduction levels are:
| Filing status | Standard deduction |
| Single | $12,950 |
| Married filing jointly | $25,900 |
| Married filing separately | $12,950 |
| Head of household | $19,400 |
Tax Bracket and Tax Deduction Changes for 2023
For 2023, the tax brackets will increase as follows:
| Marginal tax rates | Single filers | Married filing jointly | Head of household | Married filing separate |
| 10% | $11,000 or less | $22,000 or less | $15,700 or less | $11,000 or less |
| 12% | $11,001 – $44,725 | $22,001 – $89,450 | $15,701 – $59,850 | $11,001 – $44,725 |
| 22% | $44.726 – $95,375 | $89,451 – $190,750 | $59,851 – $95,350 | $44.726 – $95,375 |
| 24% | $95,376 – $182,100 | $190,751- $364,200 | $95,351 – $182,100 | $95,376 – $182,100 |
| 32% | $182,101 – $231,250 | $364,201 – $462,500 | $182,101 – $231,250 | $182,101 – $231,250 |
| 35% | $231,251 – $578,125 | $462,501 – $693,750 | $231,251 – $578,100 | $231,251 – $346,875 |
| 37% | Over $578,125 | Over $693,750 | Over $578,100 | Over $346,875 |
For 2023, the standard deduction levels are:
| Filing status | Standard deduction |
| Single | $13,850 |
| Married filing jointly | $27,700 |
| Married filing separately | $13,850 |
| Head of household | $20,800 |
Refunds
Ideally you will be able to plan so you do not receive an excessively large refund. This means that you have paid too much during the year through your withholding or other means. If you do receive a large refund for 2022, perhaps it would be wise to do a little planning for 2023.
As far as refunds for the 2022 tax year, they are running lower than for the prior year due to the expiration of some of the enhanced COVID related tax breaks such as a higher child tax credit.
The IRS urges taxpayers to file electronically if they can. Among other things, they say this will speed up refunds.
Tax filing season is a time to get expert advice to ensure you pay the least amount of tax possible for the current year and going forward. Your Wedbush financial advisor can be an excellent resource for you and your tax advisor at this time of year.
Disclosure
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice.
Disclosure
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice.