If you’re one of the millions who procrastinate, here are some helpful reminders along with some tax changes that you might not have noticed yet.
It’s that time of year again — income tax time. If you’ve already filed your return, pat yourself on the back. But if you’re one of the millions who procrastinate, here are some helpful reminders along with some tax changes that you might not have noticed yet.You can get an extension by filing IRS Form 4868 — but you must pay all the taxes you would owe or face stiff penalties.
Set up direct deposit if you expect a refund. Double-check the bank routing number, and make sure the account you specify is current and open. But right now your biggest question is how you can possibly find more deductions, since the tax year has ended. If you’re setting up an IRA for 2022, act quickly because custodians like Fidelity and Vanguard will be swamped in the week before taxes are due. Make sure your contribution is applied for the 2022 tax year.There’s a higher standard deduction this year. For the return you’re filing in April, it’s $12,950 for single filers and $25,900 for joint filers, or $19,400 for heads of household.
And if you worked remotely this year, pay close attention to state income taxes as each state is trying to grab tax money from employees — even if they moved to a place with no state income tax!
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