Reviewing your tax return and taking proactive steps early on can make filing your 2023 taxes much easier and may help you reduce your tax liability. I've included two PDFs with information to consider when reviewing your 2022 tax return. The first is for those currently working, and the second is for retirees.
Review Your Tax Return
As someone who is working, what tips should I consider when reviewing my return?
Reviewing your tax return is an informative exercise to ensure you understand all your income sources and tax liabilities for the prior year.
In this checklist, we highlight points to consider on your tax return if you're working, including:
- Review your filing status. If you're married, should you automatically file jointly with your spouse, or might there be situations where you might consider filing separately?
- If you have dependent children, you may be eligible for certain credits.
- If you're divorced or widowed, there are filing steps for you to take depending upon timing and circumstances.
- If you had investment income for the prior year, there are reporting issues that you will want to be sure you addressed in connection with this income.
- If you owned tax-advantaged accounts during the prior tax year, there might be some reporting issues to consider. Did you convert a traditional IRA to a Roth? Did you contribute to an HSA or a 401(k) plan?
- If you owned rental real estate or if there are state-specific issues, there may be additional tax considerations you should be aware of.
This is a comprehensive checklist of the types of issues that you should consider when reviewing your tax returns from the prior year.
If You're Retired
As someone who is retired, what tips should I consider when reviewing my tax return?
In this checklist, we highlight points to consider on your tax return if you're retired, including:
- Review your filing status. If you're married, should you automatically file jointly with your spouse, or might there be situations where you might consider filing separately?
- If you're divorced or widowed, there are filing steps for you to take depending upon timing and circumstances.
- If the client had investment income for the prior year, there are reporting issues that you will want to be sure your client addresses in connection with this income.
- If you owned tax-advantaged accounts during the prior tax year, there might be some reporting issues to consider, especially if you took any distributions from these accounts. If you've reached their RBD, did you take the full amount of their RMD from your retirement plans? Did you do a rollover to an IRA? Were any distributions taken from an after-tax IRA account?
- Check to see if you had a high level of medical expenses or if there are state-specific issues to be considered.
If you have any questions this year, be sure to speak with a CPA or other trusted tax professional regarding your situation. An experienced professional can answer your questions and empower you to start the tax season off with confidence. I'm always happy to help with tax planning, but if you're looking for a referral to an accountant, I'd be happy to make an introduction.