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Your Complete Guide to 2022 Tax Tips, Questions & Resources (FAQ)

Your Complete Guide to 2022 Tax Tips, Questions & Resources (FAQ)

| February 17, 2022
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Ready or not, it’s tax season again! Tax season officially began on Monday, Jan. 24, 2022. Taxes need to be filed by Monday, April 18 this year. If you are filing an extension, you will have until Oct. 17, 2022 to file your return for 2021.

We have created a guide of FAQs to help answer your questions, commonly missed tax documents and plenty of resources to ensure you have everything you need to make filing your taxes as easy as possible!

Commonly overlooked documents also include estimated tax payments. If you made estimated tax payments during the year, please let us know the amount paid as well as the dates they were paid.The MBC tax organizer has the amounts calculated from last year’s return, but please confirm the amounts and dates that you actually paid the estimates.

Please let us know of any address, dependent, marital status, job, or bank account changes etc. Believe it or not, these items are often overlooked until we have completed the return!

If you did not receive your tax organizer either mailed or through Liscio (MBC secure client portal) please send us a message through Liscio or call our office at 573-447-1777. 

To help answer questions you may have, please review our frequently asked questions. 

 Can I bring my tax documents in person? 

Yes, our hours are M-F from 8 a.m.-5 p.m. We are located at 1603 Chapel Hill Road, Suite 203 Columbia, MO 65203. We have a mail slot for after hours document drop off. When dropping off documents, please make sure your contact information is included! 

 

How long is the turnaround time once tax documents (in entirety) are dropped off?

Our goal is to complete your return in an average of 3 weeks depending on the complexity of the return or unless we are missing documents.

 

Are you taking in-person appointments?

We know everyone is busy and unless there are significant changes in your tax situation, scheduling a tax appointment may not be necessary. You can drop your information off at the office or upload it to Liscio and we will call you if there are questions. Some clients find it more beneficial to meet after the returns are complete to review the return. 

We can schedule meetings via zoom, phone call or in person. Call the office at 573-447-1777 and speak with one of our administrative staff to schedule a meeting. Our calendars fill up quickly, so if you find it necessary to schedule an appointment, please schedule early. 

 

Should I submit my tax documents to MBC if I’m missing information needed to complete my tax return? 

It is more efficient to have all your tax documents when we begin preparing your return. Not providing all the information will delay the ability to complete your return, costing you time and money. If you're missing documents to complete your return, please wait until you have collected all necessary documents before delivering them to our office or uploading them to your secure client portal through Liscio. If you're waiting on a document such as a K-1 that doesn’t usually arrive until Mid March, please deliver the remaining documents so we can start preparing your return while we await your K-1. Please be aware that we may need to file an extension depending on when the final document is received.

 

As a reminder, we will need you to provide the following information:

  • Forms W-2 for wages, salaries and tips.
  • All Forms 1099 for interest, dividends, retirement, miscellaneous income, unemployment compensation, nonemployee compensation, Social Security, state or local refunds, gambling winnings, etc.
  • Brokerage statements showing investment transactions for stocks, bonds, virtual currencies, etc. 
  • Schedule K-1 showing income from partnerships, S corporations, estates and trusts.
  • Statements and receipts supporting qualified educational expenses, deductions or distributions from 529 Plans, including any Forms 1098-T (tuition statement), 1098-E (student loan interest), or 1099-Q (education plan distributions).
  • All Forms 1095-A, 1095-B, and/or 1095-C related to health care coverage or the Premium Tax Credit.
  • Statements supporting deductions for mortgage interest (Forms 1098),real estate and personal property taxes, and charitable contributions.
  • Copies of closing statements regarding the sale or purchase of real property.
  • Legal papers for adoption, divorce, or separation involving custody of your dependent children.
  • Six-digit Identity Protection PIN if sent to you by the IRS.
  • A copy of your income tax return from last year, if not prepared by this office.



What is Liscio (MBC secure client portal)?

Liscio combines everything you need to work with us in a single, secure place. Everything from Real-Time Messaging, Secure File Sharing, and a Document Scanner are included. 

We’re always looking to add value to our clients and Liscio eliminates the time sink of going back and forth between a tangle of different software, apps and emails. Using Liscio means fewer clicks, fewer taps, and less time wasted. All your tax documents, returns and communication will be in one location!

We will continue to send newsletters and general tax information through email to keep everyone informed of “news” however, all direct client communication will be through Liscio.

 

MBC Staff Tip:  Liscio is available via mobile app and web browser; allowing you to work with us at home, at work, or on the go. Download the mobile app from your app store on your phone.

Download the Liscio app

If I have a question, how should I reach a tax professional with Miller Bales and Company? 

The fastest way to reach out for questions is to call us at (573) 447-1777 or through Liscio: https://mbcadvisors.liscio.me/login 

How do I set up an online account with the IRS?

You can find out your tax records, payments, balance, & more through your online account. You can also make payments using your online account.  If you did not receive the letters or notices above or want to verify your estimated tax payments, we recommend creating an account and printing off the tax transcript and including it with your tax documents for us. 

Go to https://www.irs.gov/payments/your-online-account to create your account. If you are married, both spouses will need to sign up for an account.

 

Are there things I can still do to make an impact on my 2021 tax return?

You may be able to contribute to a traditional IRA and get a tax deduction.  There are limitations on the deduction based on your AGI and if you are covered by an employer retirement plan at work. Traditional IRAs are tax-advantaged, which means you don’t  pay income tax on your savings or investments until you withdraw the money in retirement. You may be able to contribute to a Roth IRA if you meet certain requirements.  A Roth IRA is different from a traditional IRA in that you pay tax on the contribution now but you do not pay tax when you withdraw the money in retirement.  The contributions to a traditional or Roth IRA must be made by April 18th, 2022, the due date of the tax returns. 

Just like the IRA deduction, you can deduct health savings account (HSA) contributions until April 18th, 2022.

Can I take my home office as a deduction? 

For self-employed taxpayers who worked from home regularly in 2021, the IRS allows a deduction for associated expenses, including repairs, utilities, rent, a security system and homeowners or renters insurance. You may qualify to claim the home office deduction if you regularly use a portion of your home for your business. You must file Schedule C, Sole Proprietorship with your tax return to take the deduction. The definition of a home office to be considered a home office, the area must be regularly and exclusively used for your self-employed business.

MBC Staff Tip:You won’t be able to deduct the full electricity bills for your home and will instead need to calculate what portion of your bills applied to your home office space based on the square footage of your office.

 

What is the Family Leave Credit?

If you’re a self-employed worker who couldn’t work due to Covid-19 or needed to care for a family member with COVID-19 in 2021, you may be able to claim this refundable credit. The credit is based on the number of days you were unable to work due to Covid-19 prior to September 30, 2021 up to a maximum of 10 days.

 

Can I deduct my alimony payments? 

You can deduct your alimony payments if your divorce agreement took effect in 2018 or earlier.The 2017 tax reform eliminated this deduction for all agreements that took effect in 2019 or later. To claim this deduction, you need to know how much alimony you paid, the Social Security number of the recipient, and the date your agreement took effect. 

How much can I give per person without paying taxes? 

In 2021, you could gift up to $15,000 per individual in a year without being subject to federal gift tax. For 2022, this increases to $16,000. If you gave more than $15,000 in cash or assets (for example, stocks, land, a new car) in a year to any one person, you need to file a gift tax return.

 

Are there tax benefits for military professionals? 

Some military income and benefits are not included in taxable income. You do not have to pay income tax on combat pay. You may have extra time to file your return if you are serving overseas.

You can deduct moving expenses on your taxes if you’re an active-duty member of the U.S. Armed Forces and you had to move because of a permanent change of station. (If you’re filing back taxes, this deduction was available to non-military members before 2018.) 

Members of the military reserve forces can deduct the cost of travel as a business expense if they traveled more than 100 miles to perform reserve services. 

For additional military tax benefits: https://www.irs.gov/newsroom/special-tax-benefits-for-members-of-the-military-and-their-families

How quickly will I get my refund?

Most refunds are issued in less than 21 calendar days. The fastest way to get your refund is to complete an accurate tax return and file electronically.

MBC Staff Tip: Having the IRS direct deposit your refund is the best and fastest way to get your tax refund.To set up your direct deposit, we will need your banking information (bank name, account number and routing number). 

While every tax season is busy for the IRS, pandemic-induced backlogs from the past two years coupled with limited funding will make the current tax season even more so. The IRS has millions of unprocessed business and other returns, so please expect delays. 

The return processing and tax assistance delays arose as the agency was administering several Covid-19 relief efforts passed by Congress, including issuing three rounds of Economic Impact Payments, creating a system to send out advance monthly payments of the Child Tax Credit and making changes to the Earned Income Tax Credit.

MBC Staff Tip: It is also important for taxpayers who received a COVID-19 relief Economic Impact Payment last year or who got an advance Child Tax Credit payment to make sure they report the correct amount on their tax returns to avoid processing delays.  If what is claimed on the return is different from what the IRS reports, your tax return processing and refund (if any) could be delayed 6 months or longer.  It is imperative that you confirm the amount you received by creating your online account with the IRS.  Please let us know if there are discrepancies in what the IRS reports and what you received. 

 

Do I have to pay the tax due all at once?

If you owe taxes, you have until April 18, 2022 to have your check postmarked and mailed to the IRS, even if your return is electronically filed earlier. 

The IRS will accept full and partial payments, including payments toward a payment plan (including installment agreement). Be aware, penalties and interest will continue to grow until you pay the full balance. 

 

What are the 2021 Federal Tax Rates and Standard Deduction Amounts?

What are the 2022 Tax Payment Deadlines? 

Deadline to submit 2021 tax returns or to file an extension is Monday, April 18, 2022.

If you file a tax extension, you have until  October 17, 2022 to file your return. This is an extension of time to file and not to pay. All taxes owed must be paid by April 18, 2022 to avoid penalties and interest on the amount due. 

Do I need to make Estimated Tax Payments?

Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.

If you don’t pay enough tax through withholding and estimated tax payments, you may be charged a penalty. You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.

MBC will calculate your estimated tax payments for the 2022 tax year based on your 2021 income.  It is important to let us know if you expect large fluctuations in your income for 2022.  Proper tax planning during the year can help reduce tax surprises when you file your 2022 tax return.

If you need additional help and need to speak with a tax professional on our team, please call 573-447-1777. We are happy to help assist you through another successful tax season! 

 

- The MBC Team 

P.S. Taxes are complicated, there isn’t a “quick” tax question :) Start early and write down all your questions so we can assist you in a timely manner. 

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