Client Question: Tax preparation

February 23, 2023

Tis the season – time to get everything together for your 2022 tax return! Whether you prepare your own taxes or work with a tax advisor, the hardest part for many can be the gathering of the information and records. I’ve been helping a few clients make strides in this area in recent weeks. I thought it would be helpful to outline some of the main documents you should focus on as you start this process (and if you’ve already completed this or filed your return – big gold star to you!)

Start with the organizer

If you work with a tax advisor, they have likely sent you a tax organizer. (If you use an online tool to file on your own, not to worry as they walk you thru a similar exercise). These organizers are a great tool as they ask you a series of questions to address any key tax changes or potential deductions/benefits for you. They also list out documents you should provide and prompt you to share any life updates that will impact your taxes (like a move, marriage, birth of a child, etc). While these organizers can be thick packets, don’t let that intimidate you! They go quick and are an excellent place to start.

Support for what you earned

One main category of support is documentation of what you earned. This may include a W2 (which summarizes wage income) or a multitude of 1099 forms, which report most other income including pensions, social security, retirement account distributions, interest income, dividends, and capital gains. Take care to capture all sources of income – you don’t want to miss one!

Support for what you spent

Another key category is support for what you’ve spent. While you may not benefit from all possible deductions (as it will depend on your income levels and whether you itemize or not), it’s still wise to accumulate support for expenses such as property taxes, mortgage interest, medical expenses, and charitable contributions and see what may apply.

Support for a business

If you own your own business, there is an added layer of preparation required. Again, focus on supporting what you earned and what you spent – and ensure you also agree everything out to supporting records.

Support for retirement plan funding

If you have (or will) make contributions to retirement accounts for 2022 tax year, ensure that you share that with your tax advisor or include on your return if you self-prepare. Contributions made to an employer plan like a 401k will appear on your W2. However, if you are making your own contributions with cash (to an IRA as an example), let your tax advisor know. And since income limits may apply, it is a best practice to confirm these moves with your tax advisor in advance of moving funds.

Support for tax payments

Lastly, be sure to pull detail of any tax payments you have made for tax year 2022 thus far. If you are employed, these withholdings will appear on your W2. If you are self employed, you likely made estimated payments for which you would have cancelled checks or ACH records. If you withheld taxes on a retirement distribution, that will appear on 1099. The IRS does not track your payments for you and send you a report – so be sure to calculate and document those properly on your return to avoid paying more than you need to!

There is obvious effort involved in pulling together your taxes every year. However, it’s not so bad once you get rolling! And the sooner you do, the sooner you know your tax status for 2022 and can move on to 2023. Get going – no time like the present!

Leave a note

  1. This is a very informative and helpful blog I have read in a very long time. It gives all the right information a person needs to know. I recommend you read this blog.

  2. My sister and her husband want to start a business from home in a few weeks, so they’re researching what they need to know about their financial operations. I’m glad you talked about how a tax preparation specialist helps business owners, and I’m positive that my sister would be glad to read this too. I appreciate your advice on what you’ll need to prepare your taxes if you own a business.

Leave a Reply


Not sure what step to take next?  No problem -send us a message using this form and we'll be in touch soon to figure it out - together

Reach out

Hope to hear from or see you soon. In the meantime, travel on!


Your message has been sent. We'll be in touch shortly.

Thank you.

Follow us on Instagram