Some of the things you can do right now:
- Fund your retirement accounts. While taxpayers tend to worry about the last day they can fund their individual retirement accounts, it’s smarter to try to do that on the first day. If you fund your 2022 individual retirement account in January 2022 instead of April 2023, your retirement savings start earning their returns tax-deferred up to 15 months sooner. If tax deferral is good, starting it sooner is better. You can also fund your retirement for 2021, up through April 18, 2022.
- Check your withholding. The IRS Tax Withholding Estimator can help you adjust your wage withholding to avoid unpleasant surprises when you file your 2022 return. If you find you need to increase your withholding, it’s easier if you have more paychecks to spread the increase over. If you find you are withholding too much, so much the better – it’s like getting a tax refund sooner.
- Get your recordkeeping in order. If you have business income, the best time to improve your recordkeeping is right now. If it is beyond you, consider us to help with your bookkeeping needs.
Call your local tax experts at Meadville Tax Service 814-333-2488 or email us at info@meadvilletaxservice.com
