Preparing to file your 2022 tax returns – What do I need to know?
Happy New Year!
We hope you had a happy and healthy holiday season. As is customary this time of year, we’ve been busy preparing for the upcoming tax filing season. The 2022 tax year filing season begins in just a few weeks. The IRS has not yet announced when the e-file window opens for individual tax return, but we can start on your return as soon as you have all tax documents together. Keep in mind that even when the individual e-file window opens it does take additional time for certain forms to be released. For businesses we can e-file starting on January 12th.
Here is where you can find a list of information that we will need to prepare your return.
Returning clients can request a tax organizer based on last year’s return; this may be helpful as you gather your documents. Additionally, we have your personal information on file so we will only need an update of any important life changes, e.g., moving to a new home, marriage/divorce, new dependents, etc., along with your 2022 tax forms. If you would like an organizer or have any questions about information we will need, please email Info@HSTaxCPAS.com.
Submitting Tax Documents Through the Client Portal
All tax documents must be sent to us electronically by logging into your client portal account. We upgraded to a new version of the client portal at the end of 2022 which required renewing your access. We will no longer accept paper documents since our office is virtual. Both spouses should have access to the new portal going forward.
You should have received two emails from Hughes Szuberla CPAs Firm Portal <email@example.com>:
1) Hughes Szuberla CPAs portal access updated – this email shows the name on the account you have been given access to, and
2) Your Client Portal Account Information – this email contains the temporary password to use for first log in.
Once you log in, you can create a new password. You will then receive an email from Firm Portal <firstname.lastname@example.org> confirming your portal password changed.
You can set up Multi-Factor Authentication by clicking on Settings>Multi-Factor Authentication.
When you upload your documents, you do not need to choose a folder under Select a document tag.
We do not have access to your portal password. If you ever forget the password, you can reset it using the Forgot your Password? link on the log in page.
If you didn’t receive an email for the new portal access or need help logging into your portal account or have any other questions, please email Info@HSTaxCPAS.com and someone will assist you.
Tax Highlights 2022
Unlike the past few years, several COVID related tax benefits and credits have expired for tax year 2022. We anticipate these changes may impact the amount of refunds families will be receiving for 2022.
Recovery Rebate Credit/Economic Impact Payment has ended and we do not anticipate any future payments related to this credit.
Child and Earned Income tax credits return to 2019 levels. Affected taxpayers will receive a smaller credit compared with the 2021 tax year. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.
Child tax credits have been reduced from $3,600 for children under 5 to $2,000 for all children under 17 in 2022.
The Child and Dependent Care Credit returns to a maximum of $2,100 for 2022 instead of the $8,000 credit from 2021.
No above-the-line charitable deductions. For 2020 and 2021 tax returns, taxpayers could take up to a $600 charitable donation deduction on their returns. However, for 2022, those who take a standard deduction will no longer be able to take an above-the-line deduction for charitable donations.
Energy Efficient Home Improvement Credits (energy efficient windows, doors, appliances, furnaces, etc.) have been reinstated as part of the Inflation reduction act, bringing these formerly expired credits back to former levels for 2022 and increasing the credits further in 2023. If you made any energy efficient improvements in 2022, please let us know.
Filing Deadlines: Keep in mind that we will need all tax documents and payment at least one month prior to each deadline to file on time.
- March 15, 2022 – Returns for S corporations, multi member LLCs, and partnerships are due. An extension will extend the due date to 9/15 and will not extend the due date of taxes.
- April 18, 2023 – Returns for Individuals, FinCen Form 114, Trusts and C corporations are due. Remember that an extension of time to file is not an extension of time to pay your taxes. Keep this in mind if you plan to extend and you think you might owe.
- June 15, 2023 – Returns for Individuals outside of the country on April 18, 2023, are automatically granted an extension of time to file and of time to pay until June 15, 2023. Please let us know if you intend to be out of the country on April 18, 2023. There is only interest assessed for payments made by June 15th (no penalties).
If you would like us to submit an extension, feel free to let us know now so that we can add you to the list.
Frequently Asked Questions – please see FAQs on our website
Tax Preparation Fee
Like many industries, our business has felt the impacts of inflation primarily through much higher labor and software costs. To offset the rising costs we faced the past few years, there will be a small fee increase for every return that we prepare. We will let you know the fee for this year’s filing upfront so there will be no surprises; please let us know if you have any questions.
We are continuing the same method of fee collection from last year: when you send your 2022 documents to us to prepare your return, one of us will acknowledge receipt of the information within 24 hours and will provide a link through the Client Portal to pay our tax preparation fee in advance using a credit card, debit card or e-check. PayPal is also an option if requested.
As we say every year, THANK YOU FOR THE COUNTLESS REFERRALS! We know it is difficult to obtain reliable tax advice and preparation services when working overseas and domestically, and your referrals tell us that we are doing a good job. The growth of our firm is almost entirely through word-of-mouth referrals from our existing clients, and it means the world to us. Thank you to you all for your continued support.
We look forward to serving each of you this coming tax season. If you know anyone who needs tax assistance, we will gladly assist.
We wish you all a safe and prosperous 2023!