Tax day is right around the corner! Are you ready? 2022 Tax Day is April 18, and you want to ensure that you have everything squared away and filed by the deadline. If you pushed it off until the last minute, you’re not alone. The IRS estimates that 20-25% of taxpayers wait until the last two weeks to file their returns. Luckily, our accountants in Chelmsford, MA, at ABC Payroll are here to help you. If you haven’t filed your taxes yet, here are a few tips to help your last-minute tax prep go smoothly and to maximize your tax refund.
This may seem like a no-brainer, but it’s a big help if you’re crunched for time. According to the IRS, e-filing is the safest, fastest, and easiest way to submit individual tax returns, and over 100 million tax payers opt to e-file. If you are filing a paper return, double-check that you are sending your tax return to the correct address.
Fund your HSA.
If you have a high-deductible health insurance plan, you are most likely eligible to open a health savings account (HSA). Contributions that you make to your HSA can be excluded from your gross income. Additionally, any money you deposit into your HSA is not subject to federal income tax. There are limits to how much money you can put into your HSA each year, but an HSA is not a “use it or lose it” situation like a flexible spending account is. The money in your HSA even stays with you if you change employers.
Contribute to your 401K.
While you don’t actually take a tax deduction from your 401(k) contributions, the money you put in there is pre-tax dollars. Just like contributions to an HSA, the contributions to your 401(k) do not count toward your gross income.
Advice from your accountants in Chelmsford, MA: check your work!
You want to get your tax return filed on time, but you also want to get it right. Whether you opt for an electronic or paper return, check your work before you submit. You don’t want to get penalized or overpay because you didn’t catch a mistake. If you have a complex return, that’s our specialty at ABC Payroll. Our accountants in Chelmsford, MA, will take you through every step of the tax filing process.