You might have heard that it’s tax season. The deadline this year is April 18th because of Emancipation Day in Washington, DC. (The IRS treats all DC holidays as national holidays.)
Hopefully you’ve got everything you need — but even if you’re still waiting for a K-1, 1099, etc., you might as well pass what you have along to your accountant. Most accountants we work with prefer to get their hands on whatever the client has, as soon as possible — they can, at least, get started piecing the puzzle together.
Meanwhile, it’s time to start learning from our mistakes. I’ve seen people forfeit free money because they’ve filled out their paperwork incorrectly, so here are some facts about retirement accounts:
- Be sure to max out your allowable contribution to your 401k — $20,500 for 2022.
- Your IRA limits contributions to $6,000 — or $7,000 if aged 50 or older — for 2022.
- If you’re a W-2 employee, evaluate your withholding to make sure you will max out these two contributions. I recommend consulting with a financial professional before following through with any adjustments.
In other news, student borrowers will no doubt rejoice as their loans once again will be subject to interest as of May 1, 2022. With that in mind, right now is a good time for borrowers to figure out a new spending plan to accommodate the renewed expense.
Record keeping is an important responsibility for households and small businesses, alike. It informs buying decisions and energy usage, plus it’s an excellent insurance policy against lawsuits or whatever else the future might throw your way. Would better record keeping on your part have resulted in a better tax outcome for 2021? JHA can set you up in a way that makes record keeping effortless and automatic. Contact us to learn more.